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Homebuyer Programs in Andover, MA (2026)

Last updated April 4, 2026 | Population: 36,485 | Median home price: $830,000 | Est. closing costs: $16,500 - $25,000

Skyline of Andover, MA

Andover is an affluent suburban town in the Merrimack Valley region of Essex County, Massachusetts, known for its excellent schools and historic charm. With a median home price around $830,000, buying here is a significant investment, but several assistance programs can help. The Align Credit Union Housing Our Workforce Program offers up to $25,000 in forgivable down payment assistance for buyers earning between 80% and 120% of the area median income. The Align Credit Union FHLB Homebuyer Equity Grant provides up to $11,000 for income-eligible first-time buyers. The Andover Community Trust builds permanently affordable homes for households below 80% AMI through a community land trust model. At the state level, MassHousing offers up to $30,000 in down payment assistance and the ONE Mortgage Program provides affordable 30-year fixed-rate loans with just 3% down and no PMI. By combining local and state programs, Andover homebuyers can potentially access tens of thousands of dollars in assistance.

Top Homebuyer Programs in Andover

FHA Loans
Type:
Government-Insured Mortgage
Amount:
Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
First-time only:
No
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HomeReady Mortgage (Fannie Mae)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HUD $100 Down Program
Type:
FHA-Financed HUD REO Purchase
Amount:
Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
First-time only:
No
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
Type:
Government-Guaranteed Mortgage
Amount:
No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
First-time only:
No
Align Credit Union FHLB Homebuyer Equity Grant
Type:
Grant
Amount:
Up to $11,000
First-time only:
Yes
Align Credit Union Housing Our Workforce Program
Type:
Forgivable Loan
Amount:
Up to $25,000
First-time only:
No
Andover Community Trust Homeownership Program
Type:
Forgivable Loan
First-time only:
Yes
Essex County Habitat for Humanity Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable 30-year mortgage with no traditional down payment required; sweat equity replaces down payment
First-time only:
Yes
MassDREAMS Down Payment Assistance Grant
Type:
Grant
Amount:
Up to $50,000 for buyers earning up to 100% AMI; up to $35,000 for buyers earning 100-135% AMI
First-time only:
Yes
MassHousing Down Payment Assistance
Type:
Deferred Loan
Amount:
Up to $30,000 (below 60% AMI at 0% deferred); up to $25,000 (60-80% AMI at 2%); up to $25,000 (80-135% AMI at 3%)
First-time only:
Yes
ONE Mortgage Program
Type:
Zero-Interest Loan
Amount:
30-year fixed-rate mortgage with 3% down payment and no PMI; qualified borrowers below 80% AMI receive an additional subsidy to lower monthly payments
First-time only:
Yes

How to Apply

  1. Step 1:

    Check your eligibility. Review income limits for state and local programs. MassHousing DPA is available to first-time buyers earning up to $205,335 in Essex County. The Align Credit Union Housing Our Workforce Program serves buyers earning 80% to 120% of AMI, while the FHLB grant targets low-to-moderate income buyers.

  2. Step 2:

    Complete homebuyer education. The Merrimack Valley Housing Partnership in Lowell is a HUD-approved counseling agency that offers classes in English, Spanish, and Khmer. Contact them at (978) 459-8490 or jennifer@mvhp.org. Homebuyer education is required for most assistance programs.

  3. Step 3:

    Contact Align Credit Union. Reach their Home Financing Consultants at (800) 942-9575 or homeloans@AlignCU.com to discuss the FHLB Homebuyer Equity Grant (up to $11,000) and the Housing Our Workforce Program (up to $25,000). Funds are first-come, first-served.

  4. Step 4:

    Explore the Andover Community Trust. If you earn below 80% AMI, the Andover Community Trust builds permanently affordable homes in Andover. Contact them at (978) 276-9228 to learn about current and upcoming opportunities.

  5. Step 5:

    Get pre-approved for a mortgage. Work with a MassHousing-approved lender to access state DPA of up to $30,000, or explore the ONE Mortgage Program for a low-rate, no-PMI loan with just 3% down.

  6. Step 6:

    Find a home and apply. Once you have a signed Purchase and Sales Agreement, finalize your assistance applications. The Align CU grant requires a signed P&S to reserve funds. Allow 30 to 60 days for processing.

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