Down Payment and Closing Costs Assistance
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What is down payment and closing costs assistance?
Cities and towns and non-profit housing agencies throughout Massachusetts provide down payment and closing costs assistance to first-time homebuyers in their regions. This assistance covers some of the costs that homebuyers must pay at the time they purchase their home.
Down payment and closing costs assistance is for lower income homebuyers who can afford monthly mortgage payments but cannot save enough to pay the initial home purchase costs. The goal of the program is to increase homeownership among lower income households.
Funding comes from the federal government's American Dream Downpayment Initiative (ADDI) and other sources. ADDI is part of the federal government's HOME program, that gives money to state and local governments to create affordable housing for low-income households.
Am I eligible?
Most programs have these requirements:
- You must be a first-time homebuyer.
- You must purchase a single-family, two-family, or three-family home, or a manufactured home or condominium. Some programs also allow four-family homes.
- The price of the home must be less than the maximum allowed purchase price.
- You must purchase a home in the city or town where you apply.
- The home must be your principal residence.
- The home must pass a home inspection and lead paint inspection.
- You must complete an approved homebuyer training course and have certification.
- You must be approved for a mortgage with a participating lender.
- You must meet the income limits.
- You must meet the asset limits, if any (usually $25,000).
What are the income limits?
For most down payment assistance programs, total annual family income must be less than 80% of the area median family income set by HUD. The median family incomes vary by area and by household size. Boston has a higher limit, equal to 120% of the area median income.
Income limits, by household size, for Boston, Worcester, and Springfield, are shown in the table below:
Down Payment Assistance Income Limits
% of Annual Gross Median Household Income
Effective March 19, 2009
| Number in Household |
Boston
120% of median |
Worcester
80% of median |
Springfield
80% of median |
| 1 |
$75,720 |
$44,650 |
$43,450 |
| 2 |
$86,640 |
$51,000 |
$49,700 |
| 3 |
$97,440 |
$57,400 |
$55,900 |
| 4 |
$108,240 |
$63,750 |
$62,100 |
| 5 |
$116,880 |
$68,850 |
$67,050 |
| 6 |
$125,520 |
$73,950 |
$72,050 |
| 7 |
$134,160 |
$79,050 |
$77,000 |
| 8 |
$142,920 |
$84,150 |
$81,950 |
For income limits in other Massachusetts communities, see the HUD 2009 Median Family Incomes (PDF). Low Income on the income chart equals 80% of the median.
What are the benefits?
The amount and type of assistance you get varies from one program to another:
-
Most programs offer loans/grants that are 3% to 5% of the purchase price, up to a maximum (usually $10,000)
-
Some programs require that you pay a certain amount of the down payment costs from your own funds.
-
Most programs offer deferred loans. You do not have to pay anything unless you refinance, sell, or rent your home, or you do not use the home as your principal residence.
-
For most programs, if you live in your home for a certain number of years (usually 5 to 10 years), you do not have to pay the money back.
How do I apply?
To apply for down payment and closing costs assistance, you should contact your city/town department or non-profit housing agency. Most cities and towns in Massachusetts have down payment and closing costs assistance programs.
For cities and towns not listed below, check the ADDI HOME Buyer Assistance Programs list (PDF) on the Massachusetts Department of Housing and Community Development web site, or the Massachusetts HOME Contacts list from HUD.
| City/Town |
Agency |
Telephone/Web site |
| Boston |
Department of Neighborhood Development |
617-635-4663
Cash-to-Close Program |
| Cambridge |
Department of Community Development |
617-349-4622
Downpayment/Closing Cost Assistance |
| Gloucester |
Community Development Department |
978-282-3027
First Time Homebuyers Program |
| Kingston |
South Shore Housing
- Also includes Acushnet, Carver, Dartmouth, Fairhaven, Halifax, Middleboro, Plympton, Rochester, Wareham, Westport |
800-242-0957
HOME Loan Fund Program |
| Lawrence |
Office of Planning and Development |
978-794-5891
Housing Programs |
| Lowell |
Merrimack Valley Housing Partnership
- Also includes Billerica, Chelmsford, Dracut, Tewksbury, Tyngsboro, Littleton, Westford |
978-459-8490
Down Payment Assistance |
| New Bedford |
Office of Housing and Community Development |
508-979-1581
Neighborhoods First |
| Newton |
Newton Housing Office |
617-796-1150
First Time Homebuyer Program |
| Peabody |
North Shore Home Consortium
-includes 30 Member Communities (requires Adobe Reader) |
978-538-5774
North Shore HOME Consortium |
| Quincy |
Quincy Community Action Programs |
617-479-8181
Homeownership Assistance |
| Salem |
Planning and Community Development |
978-745-9595
Housing Programs |
| Somerville |
Housing Division |
617-625-6600
Housing Programs & Services |
| Waltham |
Waltham Housing Department |
781-314-3380
DownPayment Assistance Program (requires Adobe Reader) |
| Weymouth |
Department of Planning and Community Development |
781-340-5015
First Time Homebuyer Program (requires Adobe Reader) |
| Worcester |
Division of Neighborhood Development |
508-799-1400
Buy Worcester NOW Programs |
Useful links
These links are external links to web sites that are not part of MassResources.org. When you click on these links, you will leave our site. Click "Back" on your browser to return.
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American Dream Downpayment Initiative
Information about federal assistance to help first time homebuyers pay down payment and closing costs, from the Department of Housing and Urban Development (HUD).
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Information for First Time Homebuyers - Massachusetts DHCD
Information about down payment and closing costs assistance and other first time homebuyer programs from the Massachusetts Department of Housing and Community Development (DHCD).
Downpayment Assistance section last updated on 7/27/09
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