Massachusetts Expands $25,000 Homebuyer Assistance Program
STATE HOUSE, BOSTON, April 28, 2026…..Gov. Maura Healey announced Tuesday the expansion of an existing homebuyer assistance program that will provide up to $25,000 at 0% interest with deferred payment for first-time homebuyers.
MassHousing CEO Chrystal Kornegay said she thinks the expansion will open up homeownership for about 1,000 more homebuyers, doubling the around 1,000 that already benefit from the program yearly.
Program Expansion and Eligibility
According to the administration, first-time homebuyers who earn up to 135% of area median income and “lock in” their MassHousing mortgage between April 27 and July 31 are eligible for up to $25,000 at 0% interest with deferred payment terms to help cover a down payment, closing costs, prepaid mortgage insurance, or reduce their interest rate.
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.
Shift From Prior Loan Structure
“Buying a home is the key that unlocks so many goals for so many people. It’s a route to financial security. It’s how you build wealth and have something to pass on to your children. It’s a way to put down stakes in a community,” Healey said at a State House press conference.
Massachusetts is in a housing crisis, both in terms of affordability and stock. The Healey administration has said there must be at least 222,000 homes built by 2035 to meet the needs under a mid-range population growth scenario. Healey said Tuesday that the state already has “100,000 homes in the pipeline.”
“If you work hard, you do the right things, you should be able to afford a home in Massachusetts. And that’s our goal, as a team, as an administration,” Healey said.
MassHousing already offers up to $25,000 in down payment and homebuyer assistance loans to moderate- and middle-income households buying their first home, according to the administration, though the assistance “was offered in the form of a 15-year second mortgage with interest rates ranging from 2 to 3 percent, depending on household income.”
Housing Affordability Context
Housing Secretary Juana Matias said recent Federal Reserve data reflect that the median net worth of a homeowner is $400,000, compared to around $10,000 for a renter or non-homeowner. A 2024 report from the global nonprofit Aspen Institute reflects that, based on 2022 federal data.
“That gap is not just a number — it reflects access to opportunity, security and a stronger financial future,” Matias said, adding that the 0% interest rate will save homebuyers up to $31,000 over the life of the loan.
“That is the difference between waiting and buying, between being priced out and being able to compete, between being on the sidelines and finally becoming a homeowner,” Matias continued.
Program Funding and Additional Initiatives
Healey said the $25 million supporting the program is coming from existing MassHousing dollars.
“We’ve been doing a down payment assistance program for many years,” Kornegay said. “When we started out, about 35% of our first mortgages needed down payment assistance. Now, it’s like, 95% as home prices have increased. And so we’ve just been moving money around” to get the program financed.
Repayment of the loan is due upon sale or refinance, Kornegay said.
The administration also said it is “advancing” a Massachusetts Homeownership Tax Credit that was created in the 2023 housing law and provides up to $10 million annually for five years through 2029 to support the production of new homeownership units.
