$25K Interest Free For MA Homebuyers: See Who Is Eligible

First-time Massachusetts homebuyers will be able to borrow $25,000 from the state interest-free to help cover the cost of their down payments, according to a new program that Gov. Maura Healey and MassHousing announced this week.

The program is available to first-time homebuyers who lock in their MassHousing mortgage between April 27 and July 31 and earn up to 135 percent of the area median income for their portion of the state.

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That 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.

The new program is part of the $25 million in new housing investment that Healey announced earlier this year.

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Previously, MassHousing covered a low-interest borrowing program to help first-time homeowners with down payments in the form of a 15-year second mortgage at between 2 and 3 percent. This program replaces that with a zero-interest loan and deferred payments, designed to lower up-front payments.

"We are focused every day on lowering the cost of housing for people," Gov. Healey said. "This program lowers families' upfront costs and their monthly payments so that more people can afford to buy a home and build their future right here in Massachusetts.

"We're bringing this assistance to a wider cross-section of the middle class who are being priced out of homeownership right now. We encourage any eligible first-time homebuyers to apply for this expanded assistance, and we're going to keep using every tool at our disposal to lower costs for everyone."

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Interested homebuyers can visit here to learn more about eligibility criteria and application instructions.

"Making homeownership more affordable takes action on multiple fronts, and that is exactly what we are doing," Lt. Gov. Kim Driscoll. "By expanding homebuyer assistance and supporting other tools that lower costs, we are helping more working families and middle-class residents take the first step toward buying a home of their own."