Buying a home in Boston can feel out of reach if you don’t have piles of cash for a down payment. But here’s the good news: even in a pricey market like ours, there are smart ways to get the keys with low savings. In 2025, Massachusetts and the City of Boston rolled out (and refreshed) programs that can lower your upfront cash, reduce your rate, and make monthly payments more manageable. Below are five creative financing strategies to help low- and moderate-income buyers move from renting to owning.
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1. Stack Local Down-Payment Assistance You Don’t Have to Repay (or Not Right Away)
Start local. The Boston Home Center offers first-time buyer grants tied to income: typically 3% of the purchase price up to $50,000 for households at or below 100% of Area Median Income (AMI), and 2% up to $35,000 for 101-135% AMI. These funds can also help with closing costs, which is huge if you’re light on cash.
At the state level, MassHousing expanded its Down Payment Assistance (DPA) in June 2025-now up to $25,000 statewide for income-eligible first-time buyers who pair it with a MassHousing mortgage.
If you’re a Boston Housing Authority tenant with a voucher, ask about the BHA First Home Program-it provides $75,000 in enhanced down-payment help when you buy within city limits. That can be the entire down payment on the right home.
How to use it: Get prequalified with a lender that works routinely with Boston Home Center and Mass Housing. Confirm you can layer (stack) city assistance with a MassHousing DPA and your loan product. Many buyers combine one grant with a low-down-payment mortgage to minimize their own cash.
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2.Use Subsidized “Affordable” Mortgages Built for Lower Incomes
Two Massachusetts staples are ONE Mortgage (through the state) and MassHousing mortgages. ONE Mortgage is designed for income-qualified buyers and has household income and asset limits (generally less than $75,000 in household assets, with income caps that vary by community). The program aims to deliver stable payments and lower upfront costs for first-time buyers.
MassHousing mortgages can pair with the DPA above, often include competitive fixed rates, and in some cases offer benefits like payment protection if income is disrupted. Ask lenders which program-ONE Mortgage or MassHousing-fits your profile and whether homebuyer education can improve your pricing or eligibility.
Why it’s creative: These aren’t just “cheaper loans.” They’re engineered to stretch limited savings further without shoving you into riskier terms.
3.Go Conventional with 3% Down (and Lower PMI) Using HomeReady® or Home Possible®
If your income is within program limits, Fannie Mae HomeReady® and Freddie Mac Home Possible® let qualified first-time buyers put as little as 3% down, with reduced mortgage insurance and flexible sources for the down payment-like eligible grants, gifts, or Community Seconds®. In 2025, both programs continue to emphasize lower-income borrowers, with updated product guidelines confirming up to 97% loan-to-value (LTV) and MI advantages.
Bonus: 2025’s conforming loan limit baseline rose to $806,500 for one-unit properties nationwide, which can help buyers stay in conventional territory (often cheaper than jumbo) even at higher Boston price points.
How to use it: Ask your lender to run your file through HomeReady or Home Possible and overlay any city/state assistance from Strategy #1. That combo can cut both your down payment and your monthly PMI.
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4.“Buy the Building, Lower the Payment” with 2–4 Units + FHA
If you’re open to “house hacking,” buying a two- to four-unit property and living in one unit can offset your mortgage with rental income. FHA financing allows 3.5% down (with qualifying ratios) on owner-occupied 2-4 units, and Boston-area FHA loan limits for 2025 are sized for multi-families (e.g., in Suffolk County: approximately $914,250 for 1-unit, $1,170,400 for 2-unit, $1,414,750 for 3-unit, $1,758,200 for 4-unit). That makes small multi-families more accessible to first-timers than many expect.
Why it works: Your tenants help pay the mortgage, and the higher FHA limits create room to buy a property with income potential. Combine with Boston or state DPA (Strategy #1) if allowed to slash upfront cash even further.
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5.Team Up to Buy-Boston’s New Co-Purchasing Pilot (0% Deferred Loans)
New in 2025, Boston launched a Co-Purchasing Housing Pilot to support households buying multifamily homes together. The program provides 0% interest deferred loans (repaid at sale, transfer, or refinance) to help cover down payment and reasonable closing costs on multifamily purchases. It’s designed for shared ownership structures that build stability and spread the cost burden in an expensive city.
How to use it: If you and a sibling, friend, or another household have steady income but limited savings, this pilot can bridge the gap so your combined finances qualify-without high-interest personal loans.
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Putting It All Together (a Sample Play)
Complete a homebuyer education course (often required and sometimes improves pricing).
Get preapproved with a lender fluent in Boston Home Center, MassHousing, ONE Mortgage, and HomeReady/Home Possible overlays.
Price out two paths:
Condo with 3% down using HomeReady/Home Possible + city/state DPA
Two-family with FHA 3.5% down, layered with assistance (where permitted) so rental income softens the monthly payment
If you’re purchasing with another household, explore the Co-Purchasing Pilot early so your approval and timelines line up.
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Final Word
You don’t need a giant nest egg to buy in Boston-you need a plan. In 2025, real affordability gains are happening at the intersection of local assistance, mission-driven mortgages, and smart property choices (like small multi-families or co-purchases). Line up the right partners, stack the programs you’re eligible for, and let the math work for you.
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Real Estate Advisor
857-424-0141
Email: [email protected]
Website: paolojrealestate.com
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Disclaimer:
This article is for educational purposes only and is not financial, tax, or legal advice. Program details, eligibility, loan limits, and pricing change frequently; consult a licensed lender and housing counselor for advice specific to your situation.
