The MassHousing Down Payment Program: What Arlington First-Time Buyers Should Know Right Now
Key Takeaways
•The door isn't closed. The expanded 0% down payment help ended on July 2, 2026. But MassHousing's standard down payment assistance reactivated on August 3, 2026 — so real help is open as of today, August 6.
•Both versions offer up to $25,000, but the open one costs more. The expired version charged no interest. The open version is a repayable second loan (a loan on top of your main mortgage) at an interest rate set by MassHousing based on your income — a weaker deal than the 0% version.
•You may still qualify. The income cap is the Eastern Massachusetts regional limit of $205,335 (the region that includes Arlington).
•The bottom line: Get your eligibility checked and your numbers modeled now, then decide — the standard loan only helps if the monthly payment fits your budget.
Is the $25,000 MassHousing program really gone?
Not completely.
You may have heard the $25,000 MassHousing help is over — deadline passed, door closed. That's only half true.
Here's what actually changed. The expanded assistance gave eligible first-time buyers $25,000 at 0 percent interest with deferred repayment (you pay nothing until you sell or refinance). That version replaced a prior structure carrying a 2 to 3 percent rate. These are the statewide program terms.
MassHousing Expanded DPA: Core Buyer Terms
Hero card summarizing the main financial change in the expanded MassHousing first-time homebuyer assistance program.
Expanded 0% Deferred DPA
Downpayment and homebuyer assistance amount (interest-free)$25,000
Interest rate for expanded assistance0 percent
Repayment terms for expanded assistancedeferred repayment
Prior Assistance
Form of assistance prior to Governor's investment (interest rate range)2 to 3 percent
The 0% version required buyers to lock a MassHousing mortgage by July 2, 2026. That date moved up from the original July 31 deadline, because demand burned through the money faster than expected.
Here's the part worth knowing now: MassHousing's standard down payment assistance reactivated on August 3, 2026. As of today, August 6, there's still a live path to help.
What expired, and what can you still apply for?
The real question is simple: is the money still real? Yes. But it's not the same deal.
Both versions offer up to $25,000. The difference is how repayment works.
•Expanded version, now expired: 0% interest, with payment deferred until you sell, refinance, or pay off your first mortgage.
•Standard version, open now: a repayable second loan (a loan on top of your main mortgage), generally over 15 years, at an interest rate MassHousing sets based on your income. The prior structure charged 2–3% — confirm the current rate with your lender.
That interest rate isn't a footnote — it's a monthly payment the 0% version never had. It can also shrink how much home a lender says you can afford. The reactivated version is simply a weaker deal than the expired 0% one, so it only helps if the numbers work for your budget.
So before you fall for an Arlington condo, get the full payment in writing from a MassHousing-approved lender. Ask them to show the first mortgage, the second loan, taxes, insurance, condo fee, and total monthly cost — all in one place.
This isn't a niche program, either. Since the start of 2023, MassHousing has issued 4,757 down payment assistance loans, helping over 5,900 households become homeowners.
MassHousing DPA Reliance Since Beginning of 2023
Comparison of recent MassHousing homeownership activity and DPA loan volume since the beginning of 2023.
You can use the assistance for a down payment, closing costs, prepaid mortgage insurance, or a rate buy-down (paying up front to lower your interest rate).
In plain English: the best version got scarcer, but real help is still on the table — if it fits your budget.
Is $25,000 enough to matter in Arlington?
It can be, if you use it the right way.
In Arlington, especially inside Route 128, $25,000 may not sound like much against a single-family home price tag. Fair concern. But most first-time buyers aren't chasing the priciest house in town — they're closing the gap on entry-level condos, smaller homes, and two-families near East Arlington, the Minuteman Bikeway, and the Massachusetts Avenue corridor.
The point isn't that $25,000 makes Arlington cheap. It doesn't. What it can do is reduce the cash you bring to closing and preserve savings for moving, repairs, and reserves. On a modestly priced condo, that's sometimes the difference between buying this year and waiting another.
The income limits are also broader than many buyers expect. The cap sits at the Eastern Massachusetts regional limit of $205,335 (the region that includes Arlington).
Income Limits for Expanded DPA by Massachusetts Region
Regional examples of the 135% AMI income eligibility ceiling for the expanded assistance program.
That reaches well into the working middle class.
You do need to be a first-time buyer — generally meaning you haven't owned a home in the last three years.
Housing Secretary Juana Matias put it plainly: "the biggest obstacle to buying a first home is saving enough for a down payment." That's exactly the problem this program is built to shrink.
Can you stack MassHousing help with ONE Mortgage?
Often, yes.
MassHousing isn't the only first-time buyer tool in Massachusetts. The Massachusetts Housing Partnership runs ONE Mortgage statewide, and these low-down-payment mortgage options can sometimes be modeled alongside MassHousing's standard assistance.
One caution: the enhanced ONE+Boston version is Boston-only and doesn't apply in Arlington. But the broader ONE Mortgage framework and MassHousing's standard help are both available statewide, so an Arlington buyer can still pair the two.
Why does stacking matter? Less cash used at closing means more left over for reserves, moving costs, and that first unexpected repair bill.
The action step is simple: ask a MassHousing-approved lender to model both options against your target Arlington property. Get the numbers side by side before you write an offer.
What should Arlington buyers do this week?
Move deliberately. Here's your short checklist:
•Step 1 — Confirm eligibility. You must be a first-time buyer, with no ownership in the last three years, and household income under the Eastern Massachusetts regional limit of $205,335 (the region that includes Arlington).
•Step 2 — Contact a MassHousing-approved lender. The assistance must be paired with a MassHousing first mortgage.
•Step 3 — Get the monthly cost in writing. Ask how the second loan is repaid and how it changes your buying power.
•Step 4 — Ask about stacking. Have the lender compare MassHousing assistance with a ONE Mortgage option.
•Step 5 — Refresh your pre-approval. Pre-approval is a lender's written estimate of what you can borrow. If it's more than 30 days old, update it.
Two more questions worth asking your agent: whether current Massachusetts rules limit inspection waivers, and whether a written buyer-agent agreement is required before touring homes. These rules shifted recently, so confirm what's current.
Why should you act if the deadline already moved once?
Because it shows how fast these programs can change.
Plenty of buyers feel burned by July. The 0% money was advertised with one deadline, then the lock date moved up to July 2, 2026 after demand surged. That frustration is fair — local realtors had warned these programs can hit funding limits quickly.
The reactivated August 3 standard product is open now, with no funding cap or new deadline confirmed at this time. There's no proven rush like the 0% version faced. So the smart move isn't panic — it's getting your eligibility checked, your lender lined up, and your numbers confirmed before you commit to anything.
The 0% version is gone. But real, income-based help is open this week for qualified Arlington first-time buyers.
If you want to know whether this works for your price range, send over the type of home you're targeting and your rough budget. We can map the MassHousing numbers before you start writing offers.
