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Innovative Grant Program for Massachusetts First Time Homebuyers – Down Payment Assistance

It’s no secret that the steady rise of mortgage interest rates over the past few months has made it exceedingly difficult for prospective first time homebuyers to afford a mortgage. At the same time, with limited rental property inventory in Massachusetts, rents have also been steadily rising – which is forcing renters to devote a higher percentage of their income to housing than is sustainable.

In an environment like this, one of the major benefits of a mortgage is having a monthly payment that never goes up, which allows families to budget for all other aspects of life. This can only happen if first time home buyers of moderate means can secure a mortgage.

For first time homebuyers, coming up with a down payment can be a challenge. However, good news for Massachusetts first time homebuyers – down payment assistance is now available, and it can be up to a whopping $50,000.

MassHousing and the Massachusetts Housing Partnership (MHP) have come together to create a program specifically to provide Massachusetts first time homebuyers down payment assistance – the MassDREAMS Grant Program.

This program offers assistance with down payment and closing costs plus other forms of mortgage assistance specifically to low- and moderate-income first time homebuyers. This program helps increase your purchasing power and creates an opportunity to purchase your first home in Massachusetts.

About MassDREAMS

MassDREAMS is made possible by federal funding from the American Rescue Plan Act of 2021, which provides assistance to states to mitigate the economic effects of the COVID-19 pandemic. MassDREAMS is a Massachusetts program that provides up to $50,000 down payment and closing cost grants to first-time homebuyers who meet the program’s eligibility criteria.

If you qualify, you can purchase a primary residence anywhere in Massachusetts but you must presently live in one of the communities that has been disproportionately impacted by the pandemic.

Launched on September 12th, 2022, MassDREAMS is designed to provide expanded down payment assistance and other support to people and communities disproportionately impacted by Covid-19. To support sustainable and durable homeownership and increase long-term housing security for people and places affected by Covid-19, eligible residents may receive up to $50,000 in grants to be used for a down payment, and additional funds may be used for closing costs, single borrower paid Mortgage Insurance premiums, and Interest Rate buy downs.

The MassDREAMS program is for the purchase of a primary residence only. Condos or 1-4 family homes anywhere in Massachusetts can be used as the borrower’s primary residence.

Eligible Communities

If you presently live in one of these communities, regardless of where you intend to buy your house, then you may be eligible. Communities considered disproportionately impacted by Covid-19 include:

Attleboro, Barnstable, Boston, Brockton, Chelsea, Chicopee, Everett, Fall River, Fitchburg, Framingham, Haverhill, Holyoke, Lawrence, Leominster, Lowell, Lynn, Malden, Methuen, New Bedford, Peabody, Pittsfield, Quincy, Randolph, Revere, Salem, Springfield, Taunton, Westfield and Worcester

Eligibility for MassDREAMS

To be eligible for MassDREAMS Homebuyer Grants, you must:

  • Be a first-time homebuyer
  • Purchase a home in any Massachusetts community, using a MassHousing or MHP mortgage
  • Currently reside in one of the 29 Disproportionately Impacted Communities in Massachusetts
  • Buy a single-family home, condominium or 2-, 3- or 4-family home, which will be your primary residence
  • Meet income and other eligibility criteria, which vary by location

To learn more about MassDREAMS and to see if you might be eligible, visit or get in touch with us today. This website is administered by the Citizens Housing and Planning Association and jointly funded by MassHousing and MHP. Troy City Mortgage is an approved MassHousing partner, and we are here to help you maximize the benefit of this amazing program.

How Much Assistance is Available?

  • Up to $50,000 for homebuyers earning up to 100% of the area median income (AMI)
  • Up to $35,000 for homebuyers earning between 100.01% and 135% of area median income
  • Assistance is structured as a grant so it never needs to be repaid
  • The grant can be combined with other forms of first time homebuyer assistance

Area Median Income varies by county. For example, the area median income in Berkshire County is $117,855 and in Essex County is $179,955.

Troy City Mortgage is Here to Help

For Massachusetts first time homebuyers, down payment assistance can help put the dream of homeownership within reach. The MassDREAMS grant program is exciting news for first time homebuyers who live in one of the eligible communities because they can use the grant funds to purchase a primary residence anywhere in Massachusetts. Troy City Mortgage is an approved MassHousing partner, and we are here to help you.

We’ve already processed a number of mortgage applications for program participants and are happy to help any first time homebuyer residing in one of the approved communities secure a MassDREAMS Grant and make your dream of home ownership come true.

If you want to escape ever-increasing rents and purchase your first home, let’s talk!

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