The single most common reason renters tell us they "can't" buy yet is the down payment. And almost every time, the number in their head is wrong.
The belief that you need 20% down is one of the most expensive myths in real estate. On a $600,000 home — below the current Massachusetts median list price of roughly $749,000 — 20% is $120,000. That's a number that keeps people renting for years. But it is not the number Massachusetts first-time buyers are actually putting down. Many are getting in with 3%, and a meaningful share are walking into closing having spent less of their own savings than they expected, because the Commonwealth has built one of the more generous first-time buyer toolkits in the country.
Here is how the pieces actually fit together in 2026.
The 20% rule is a myth, but PMI is real
You can buy with far less than 20% down. The trade-off has historically been private mortgage insurance (PMI) — an extra monthly cost lenders charge when your down payment is small, to protect themselves rather than you. PMI is the real reason 20% became shorthand for "the responsible amount."
The good news: several Massachusetts programs either eliminate PMI entirely or cover it for you. So the calculation changes. The question isn't "How do I save 20%?" It's "Which combination of programs lets me buy sooner without an unaffordable monthly payment?"
ONE Mortgage: 3% down, no PMI
The ONE Mortgage, run by the Massachusetts Housing Partnership, is a 30-year fixed-rate loan built specifically for first-time buyers. It requires as little as 3% down, carries a below-market interest rate, and — critically — has no private mortgage insurance. For income-qualified buyers it can also include a subsidy that lowers the monthly payment in the early years.
It's offered through dozens of participating Massachusetts lenders. Income limits apply and vary by community, so the cutoff in Boston is different from the cutoff in Worcester or the Berkshires. The structure is what makes it powerful: low down payment and no PMI is a combination most conventional loans can't match.
MassHousing Down Payment Assistance: up to $30,000 at 0%
The second major piece is down payment assistance (DPA) from MassHousing, the state's housing finance agency. For first-time buyers who lock a MassHousing mortgage in the current program window, the assistance is structured as a loan of up to $30,000 (or $25,000, depending on income) at 0% interest with no monthly payments. You don't repay it until you sell, refinance, or pay off your first mortgage.
A few details worth understanding clearly:
- It is still a loan, not a grant. It comes due eventually — when you sell or refinance, that balance is repaid out of proceeds. It is not free money, but a 0% deferred loan is about as buyer-friendly as financing gets.
- The income limits are higher than most people assume. Eligibility reaches up to 135% of area median income. In eastern Massachusetts that's roughly $205,000 for a household — well into what most people would call middle class. A lot of buyers who assume they earn "too much" for assistance actually qualify.
- It's time-bound. The expanded 0% terms apply to mortgages locked within a specific window (currently spring through late July 2026). These programs are renewed and adjusted regularly, so the exact terms when you're reading this may differ. Confirm the current offer with a participating lender before you build your plan around it.
For buyers in certain communities, an expanded version (ONE+) can provide even larger combined down payment and closing-cost assistance.
How the pieces layer
The reason to work with a lender who knows these programs is that they stack. A first-time buyer can pair a ONE Mortgage or MassHousing first mortgage (low down payment, no or covered PMI) with a DPA loan that covers much of the cash needed at closing. Layer in a municipal program — Boston, Cambridge, and several Gateway Cities run their own assistance — and the out-of-pocket number can shrink dramatically.
That's how someone earning a normal salary, with savings that fall far short of $120,000, ends up with keys in hand.
What you actually need to qualify
Programs vary, but the common threads in 2026 are:
- A credit score around 640 or higher. Some lenders work with lower scores given compensating factors, but 640 is the typical floor.
- A completed homebuyer education course. Nearly every state program requires one. It runs about six hours, is available online, and costs roughly $75. Don't skip it or leave it to the last minute — closings have been delayed over a missing certificate.
- Owner-occupancy. These programs are for the home you'll live in, including condos and 2-to-4-unit properties where you occupy one unit. They are not for investment purchases.
- Income within the program limits for your household size and county.
The honest caveats
Down payment assistance lowers the cash you need up front, not the size of your mortgage. A smaller down payment means a larger loan and a larger monthly payment, and the deferred DPA loan reduces your eventual proceeds when you sell. None of that is a reason to avoid these programs — for most first-time buyers, getting into the market sooner outweighs the costs — but you should walk in understanding the full picture rather than just the headline.
Program terms, income limits, and funding windows change, sometimes from one quarter to the next. The figures here are accurate as of mid-2026, but the only number that matters for your purchase is the one a participating lender quotes you this week.