See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 3, 2026
Homebuyer Programs in Cambridge, MA (2026)
Cambridge is one of the most expensive housing markets in Massachusetts, with a median home price of approximately $940,000. Despite the high costs, buyers have access to strong assistance programs. The city's Down Payment Assistance Program offers up to 6% of the purchase price (capped at $75,000) as a forgivable loan that is fully forgiven after 5 years of owner occupancy. At the state level, MassHousing provides up to $30,000 in down payment assistance as a 0% deferred loan for buyers under 60% AMI, and the ONE Mortgage program offers 30-year fixed-rate loans with just 3% down and no PMI. First-generation homebuyers can access an additional $40,000 through the FHLBank Boston Lift Up Homeownership grant and $20,000 through the MAHA STASH program. Cambridge also offers an affordable homeownership lottery through its Inclusionary Housing program, where income-eligible first-time buyers can purchase below-market condos.
City Programs in Cambridge
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Cambridge Down Payment Assistance Program | Forgivable Loan | Up to 6% of the purchase price, capped at $75,000 | Yes | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to 6% of the purchase price, capped at $75,000
- First-time only:
- Yes
State Programs in Massachusetts
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| MassDREAMS Down Payment Assistance Grant | Grant | Up to $50,000 for buyers earning up to 100% AMI; up to $35,000 for buyers earning 100-135% AMI | Yes | View → |
| MassHousing Down Payment Assistance | Deferred Loan | 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%) | Yes | View → |
| ONE Mortgage Program | Zero-Interest Loan | 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 | Yes | View → |
- 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
- 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
- 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
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- 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
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- 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
- 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
- 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
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- 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
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHLBank Boston Lift Up Homeownership | Grant | Up to $40,000 grant | Yes | View → |
| Habitat for Humanity Greater Boston Homeownership Program | Zero-Interest Loan | Affordable mortgage with monthly housing costs capped at 30% of gross monthly income | No | View → |
| MAHA STASH First-Gen Home Program | Grant | Up to $10,000 grant in Boston; up to $20,000 in other Massachusetts cities | Yes | View → |
- Type:
- Grant
- Amount:
- Up to $40,000 grant
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- Amount:
- Affordable mortgage with monthly housing costs capped at 30% of gross monthly income
- First-time only:
- No
- Type:
- Grant
- Amount:
- Up to $10,000 grant in Boston; up to $20,000 in other Massachusetts cities
- First-time only:
- Yes
How to Apply
Step 1: Check your eligibility. The Cambridge city DPA has specific income limits by household size: $70,750 for one person, $80,850 for two, $90,950 for three, and $101,050 for four. MassHousing DPA covers buyers up to 100% AMI in Cambridge.
Step 2: Complete homebuyer education. You must complete a first-time homebuyer workshop. Cambridge Savings Bank offers CHAPA-certified homebuyer education seminars. East Cambridge Savings Bank also provides homebuying seminars.
Step 3: Get pre-approved for a mortgage. Work with a MassHousing-approved lender or ONE Mortgage participating lender. Cambridge Savings Bank and East Cambridge Savings Bank are local options familiar with city and state programs. Contact MHP at 1-800-752-7131 for a full lender list.
Step 4: Find a home in Cambridge. The city DPA requires purchase of a single-family home, condo, or two- or three-family home within Cambridge that will be your primary residence.
Step 5: Apply for down payment assistance. Contact the Cambridge Community Development Department Housing Division at homeownership@cambridgema.gov or (617) 349-4622. You must demonstrate a need for assistance and utilize all other available resources. The city performs a needs test.
Step 6: Close on your home. Your lender and the city will coordinate closing. The DPA is structured as a forgivable loan with 20% forgiven each year over 5 years.
Frequently Asked Questions
How much down payment assistance can I get in Cambridge?+−
Do I have to be a first-time homebuyer to qualify?+−
What are the income limits for the Cambridge DPA?+−
What homebuyer education is required?+−
What is the Cambridge affordable homeownership lottery?+−
Free eligibility check
Buying a home in Cambridge? 14 programs could help.
How soon are you looking to buy?