Massachusetts Launches First-Time Homebuyer Assistance Program

Certain first-time homebuyers will be eligible for down payment assistance from the Massachusetts government, courtesy of a newly expanded program. 

On Tuesday, April 28, Gov. Maura Healey announced extending existing Massachusetts Housing Authority money and reallocating it to provide more financial assistance to first-time homebuyers.

CBS News Boston reported that first-time homebuyers who meet specific eligibility requirements — those who make up to 135% of the area median income — will be eligible for a 0% interest loan for up to $25,000 to help them purchase their first home if they get a MassHousing mortgage. 

According to a Boston Herald report, the loans include deferred repayment terms to help cover a down payment, closing costs, and prepaid mortgage insurance.

“That 0% interest will save those home buyers up to $31,000 over the life of the loan,” said Secretary of Housing and Liveable Communities Juana Matias in a statement. “That is the difference between waiting and buying, between being priced out and being able to compete.”

Healey's office provided figures that state the area median income ranges “from $205,335 in eastern Massachusetts, to $165,645 in Worcester County, to $137,565 in the Berkshires, and $129,870 in Hampden County,” per Healey's office.

Although this incentive sounds attractive, the reality is that the support is only a drop in the bucket toward purchasing a home in the state.

According to Realtor.com, the median listing price for a home in Massachusetts in March was approximately $749,450.

Coupled with the cost of the housing, the program itself has a $25 million budget and is available only to approximately 1,000 families. To apply, individuals must commit to a MassHousing mortgage before July 31.

The Boston Herald noted that MassHousing already offers up to $25,000 in down payment and homebuyer assistance loans for moderate- and middle-income households purchasing a first home. It offers a 15-year second mortgage with interest rates from 2% to 3%.

The Herald also observed that Healey's announcement of the program expansion comes only days after a UNH Survey Center poll recorded a seven-point drop in Healey's net approval rating. Approximately 53% of respondents said they did not believe Healey was doing a good job of handling the state's housing affordability crisis.