Massachusetts has a state-backed mortgage for first-time buyers. Here’s what it requires, a second state program that’s often confused with it, and the paperwork that trips people up.
ONE Mortgage (Massachusetts Housing Partnership)
The ONE Mortgage requires a 3% down payment for a condo, single-family or two-family home, with no private mortgage insurance. You qualify as a first-time buyer if you haven’t owned a home at any point in the last three years. The minimum credit score is 640 for a single-family or condo and 660 for a two-family. Household income must be under the program’s limit, which varies by community and household size, and a homebuyer education class must be completed before purchase. Details and the current limits are on mhp.net.
MassHousing down payment assistance
MassHousing offers down payment assistance of up to $30,000 to income-eligible first-time buyers purchasing a primary residence. It’s delivered as a second mortgage through a MassHousing-approved lender and pairs with a MassHousing first mortgage, not the ONE Mortgage. The deferred option is interest-free with no payments until the property is sold, refinanced or the first mortgage is paid off; the other options are amortizing loans with lower caps. The amount and option depend on the lender.
The FICO rate-shopping window
On the newest FICO score versions, all mortgage inquiries within a 45-day span are treated as a single inquiry. Older versions use a shorter window, and the lender chooses which version it pulls. Shopping several lenders inside one short stretch protects the score.
Pre-qualification versus pre-approval
Per the Consumer Financial Protection Bureau, a pre-qualification letter may be based on information you provided without verification, while a pre-approval is generally based on verified information. Lenders use the terms differently, and neither is a guaranteed loan offer. Ask the lender what was verified before you attach the letter to an offer.
Where I start with first-time buyers
I check the town’s income limit first, then the class, then the lender. If the first one clears, the 3% program is real money. Diana Kim, REALTOR®, eXp Realty.
Questions
Common questions
What is the minimum down payment for a first-time buyer in Massachusetts?
The MHP ONE Mortgage requires 3% down for a condo, single-family or two-family home, with no PMI. Income limits by town and a homebuyer class apply.
Who counts as a first-time home buyer in Massachusetts?
For the ONE Mortgage, anyone who has not owned a home at any point in the last three years.
How much down payment assistance does MassHousing offer?
Up to $30,000 for income-eligible first-time buyers, as a second loan paired with a MassHousing mortgage. The amount depends on the option chosen.
Sources
- MHP ONE Mortgage: 3% down payment for a condo, single-family or two-family home
- MassHousing Down Payment Assistance of up to $30,000 for eligible homebuyers in every city and town in Massachusetts
- myFICO: for the newest FICO score versions the rate-shopping period is any 45-day span; mortgage inquiries inside it count as one
Written by Diana Yeji Kim — REALTOR® at eXp Realty, serving Greater Boston in English, Korean, and Japanese.
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