Massachusetts Home Loans 2026 — Complete Guide

Massachusetts offers up to $30,000 in MassHousing down payment assistance, plus why a recent expanded program closed its window earlier than planned.

Updated: July 2026 | Source: MassHousing.com · Mass.gov · FHFA · HUD · Freddie Mac PMMS

Massachusetts Home Loans 2026 — Complete Guide

From 3.5% down FHA to $30,000 in state down payment assistance — here is what home buyers in Massachusetts can access in 2026.

Massachusetts recently ran a temporary, high-demand expansion of its down payment assistance that closed earlier than planned — a reminder that these windows move fast. This guide covers loan limits, current rates, property tax, and the MassHousing programs available to general buyers this year.

$614,000
MA median home price (Feb 2026)
6.55%
Avg. 30-yr conventional rate
Up to $30,000
MassHousing down payment assistance
$541K–$1.25M
2026 FHA limits by county

The number people miss: Governor Healey's expanded $25,000 interest-free down payment boost — open to buyers earning up to 135% of area median income — proved so popular that the state closed the window early, on July 2, 2026, instead of the originally planned July 31 deadline. If you're reading about that specific expanded offer, it has already ended; confirm what MassHousing's standard program currently offers instead.

Massachusetts Down Payment Assistance — MassHousing Programs

MassHousing (the Massachusetts Housing Finance Agency) offers down payment assistance in every one of the state's 351 cities and towns, paired with a MassHousing first mortgage.

MassHousing Down Payment Assistance

Standard DPAUp to $30,000, 0% interest, deferred
Alternate structure (some income tiers)Up to 5% or $15,000, 15-yr amortizing at 2%
Income limitUp to 135% AMI in Boston & Gateway Cities, 100% AMI elsewhere

Structure can vary by exact income tier: MassHousing's assistance is sometimes offered as a 0% deferred loan (no payment until sale, refinance, or payoff) and sometimes as a 15-year amortizing loan at 2% interest with a monthly payment, depending on the specific program tier you qualify for. Confirm which structure applies to your situation with a MassHousing-approved lender before assuming either default applies.

MHP ONE Mortgage is a different kind of help: The Massachusetts Housing Partnership's ONE Mortgage doesn't provide upfront cash like MassHousing — instead it offers 3% down with no PMI requirement, lowering your monthly payment rather than your closing costs. For very low-income borrowers, it may also include a subsidized second mortgage.

Local consortiums can offer more than the state program: Depending on where you buy, local options can exceed MassHousing's assistance — the North Suburban HOME Consortium (Arlington, Chelsea, Everett, Malden, Medford, Melrose, Revere, Winthrop) offers up to $10,000 forgiven over 5 years; the South Shore HOME Consortium (Braintree, Quincy, Randolph, Weymouth) offers up to $40,000; and the Boston Home Center offers up to $50,000 in grant assistance inside Boston city limits specifically. Check your specific city or town before defaulting to the statewide MassHousing figure.

Eligibility & Income Limits

MassHousing DPA generally requires first-time buyer status, a minimum 640 credit score, homebuyer education, and a purchase price under program caps (around $838,717 in most areas, higher in Boston/Cambridge).

Confirm your exact county limit and current program terms at MassHousing.com before applying.

Current Rates

ProductRateSource
30-yr Conventional6.55%Freddie Mac PMMS, week of July 16, 2026
15-yr Fixed5.93%Freddie Mac PMMS, week of July 16, 2026
MassHousing Mortgage first mortgageBelow marketConfirm current rate with a MassHousing-approved lender

2026 Loan Limits by County

Most of Massachusetts' major population centers — Suffolk (Boston), Middlesex (Cambridge), Norfolk (Quincy), and Essex — qualify for the national ceiling. Western counties use the standard floor.

AreaFHA LimitConforming (Conventional) Limit
Hampden, Franklin, Berkshire (Western MA)$541,287$832,750
Suffolk, Middlesex, Norfolk, Essex (Greater Boston)$1,249,125$1,249,125

Several other counties fall between these tiers. Verify your exact county at HUD.gov before house-hunting.

Property Tax in Massachusetts

What Buyers Should Budget For

Statewide average effective rate~1.12%
Proposition 2½ levy growth cap2.5%/year per municipality (can be overridden by voters)
Residential Exemption (Clause 5, city-optional)Reduces assessed value for owner-occupants where adopted
Reassessment frequencyFull revaluation at least every 3 years

Massachusetts property tax is set entirely at the municipal level across its 351 cities and towns, with the landmark Proposition 2½ (1980) capping how much a municipality's total tax levy can grow each year at 2.5%, though voters can approve an override for a permanent increase or a debt exclusion for a temporary one tied to a specific project. This caps overall municipal revenue growth, not any individual homeowner's bill directly, so a reassessment can still shift more of the burden onto your specific property even in a capped year. Some municipalities, including Boston, adopt a Residential Exemption (Clause 5) that reduces the assessed value for owner-occupied primary residences, and many also set a different (often higher) tax rate for commercial and industrial property to shift burden away from homeowners. Confirm with your specific city or town assessor whether these options are in effect where you're buying, since adoption varies significantly across the state's 351 municipalities.

Pick Your Loan Type

Try the Loan Calculator Compare FHA, Conventional, USDA & VA with Massachusetts prices and current rates

Are you a teacher, nurse, firefighter, police officer, EMT, or veteran? MassHousing offers assistance for veterans, active-duty military, and Gold Star Families on top of the general options covered here. Browse the Hero Home Loan Programs hub and select Massachusetts for profession-specific options.

Frequently Asked Questions

Is the $25,000 expanded down payment assistance still available?
No — that specific expanded 0% interest offer required locking a MassHousing mortgage by July 2, 2026, and the window has closed due to high demand. MassHousing's standard down payment assistance programs remain available; confirm current terms with a participating lender.
Is MassHousing's DPA forgivable?
Depending on the specific structure you qualify for, it's either a 0% deferred loan (repaid at sale, refinance, or payoff, not forgiven) or a 15-year amortizing loan at 2% interest with a monthly payment. Confirm which applies to your income tier before assuming either default.
Should I look beyond MassHousing if I'm buying in Boston?
Yes — the Boston Home Center offers up to $50,000 in grant assistance for buyers purchasing within Boston city limits, meaningfully more than MassHousing's statewide maximum. Local consortiums in other specific communities can also exceed the state program.
Does Proposition 2½ limit my individual property tax bill?
Not directly. It caps how much a municipality's total tax levy can grow each year, not any single homeowner's bill — a reassessment can still shift a larger share of that capped total onto your specific property.

Bottom Line: Massachusetts home prices sit well above the national median, but MassHousing's down payment assistance and various local consortium programs can meaningfully close that gap, especially in Boston and its surrounding communities. Property tax stays moderate overall thanks to Proposition 2½, though it varies significantly by municipality — check local exemptions and rates before assuming a statewide average applies.

Disclaimer: This post is for informational purposes only and does not constitute financial, legal, or mortgage advice. Program terms, rates, income limits, and availability change frequently — verify all details directly with official program sources before making any financial decisions. StatewiseFinance is not affiliated with any government agency or lender listed in this post.

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