See programs you qualify for

By Tyler Thompson · Licensed Real Estate Agent · Updated April 4, 2026

Homebuyer Programs in Chelsea, MA (2026)

Population: 40,000 | Median home price: $550,000 | Est. closing costs: $11,000 - $16,500

Chelsea is a densely populated Gateway City just north of Boston in Suffolk County with a population of about 40,000 and a median home price around $550,000. As one of 29 communities designated under the MassDREAMS program, Chelsea buyers can access up to $50,000 in down payment assistance grants, plus up to $30,000 through the MassHousing Down Payment Assistance program. The City of Chelsea offers its own CDBG-funded down payment assistance of up to $10,000 as a forgivable loan, and the North Suburban Consortium provides an additional $10,000 in DPA for Chelsea residents. Chelsea Restoration Corporation serves as the primary local HUD-approved housing counseling agency, guiding buyers through education and program applications. Comunidades Enraizadas Community Land Trust and Habitat for Humanity Greater Boston are also building permanently affordable homes in Chelsea. By stacking city, regional, state, and nonprofit programs, eligible Chelsea buyers could receive over $70,000 in combined assistance.

City Programs in Chelsea

Program Name	Type	Amount	First-Time Only	Details
City of Chelsea First-Time Homebuyer Down Payment Assistance	Forgivable Loan	Up to $10,000	Yes	View →
North Suburban Consortium Down Payment Assistance	Forgivable Loan	Up to $10,000 for non-subsidized properties; up to $5,000 for NSC HOME-subsidized properties	Yes	View →

City of Chelsea First-Time Homebuyer Down Payment Assistance

Type:: Forgivable Loan
Amount:: Up to $10,000
First-time only:: Yes

North Suburban Consortium Down Payment Assistance

Type:: Forgivable Loan
Amount:: Up to $10,000 for non-subsidized properties; up to $5,000 for NSC HOME-subsidized properties
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 →

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

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 →

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

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

Nonprofit Programs

Program Name	Type	Amount	First-Time Only	Details
Comunidades Enraizadas Community Land Trust Homeownership	Zero-Interest Loan	Permanently affordable home purchase through 99-year renewable ground lease	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 →

Comunidades Enraizadas Community Land Trust Homeownership

Type:: Zero-Interest Loan
Amount:: Permanently affordable home purchase through 99-year renewable ground lease
First-time only:: Yes

Habitat for Humanity Greater Boston Homeownership Program

Type:: Zero-Interest Loan
Amount:: Affordable mortgage with monthly housing costs capped at 30% of gross monthly income
First-time only:: No

MAHA STASH First-Gen Home Program

Type:: Grant
Amount:: Up to $10,000 grant in Boston; up to $20,000 in other Massachusetts cities
First-time only:: Yes

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15 programs available in Chelsea. See which ones you qualify for.

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How to Apply

Step 1: Check your eligibility. Most programs require household income at or below 80% to 135% of the Area Median Income for Suffolk County. The MassDREAMS grant offers up to $50,000 for buyers under 100% AMI or $35,000 for buyers between 100-135% AMI. The City of Chelsea DPA and North Suburban Consortium both require income at or below 80% AMI.

Step 2: Complete homebuyer education. Contact Chelsea Restoration Corporation at 617-889-2277 to enroll in a HUD-approved first-time homebuyer education course. Courses are available in English and Spanish. You will need a certificate of completion for most assistance programs.

Step 3: Get pre-approved for a mortgage. Work with a MassHousing or MHP participating lender to get pre-approved. Ask about the ONE Mortgage Program, which offers a 30-year fixed rate with just 3% down and no PMI. You will need at least 1.5% of the purchase price from your own savings.

Step 4: Apply for city down payment assistance. Contact the City of Chelsea Department of Housing and Community Development at 617-466-4192 or bcares@chelseama.gov to apply for up to $10,000 in forgivable loan assistance.

Step 5: Apply for North Suburban Consortium DPA. Through Chelsea Restoration Corporation, apply for the NSC program which provides up to $10,000 as a 0% interest deferred loan, forgiven over 5 years at 20% per year.

Step 6: Apply for state programs. Through your participating lender, apply for MassDREAMS (up to $50,000 as a Gateway City resident) and MassHousing Down Payment Assistance (up to $30,000 at 0% interest for buyers under 60% AMI).

Step 7: Find a home in Chelsea and submit your purchase offer. Your lender, Chelsea Restoration Corporation counselor, and the city housing department will help coordinate the timing of your multiple assistance sources with your closing.

Frequently Asked Questions

How much down payment assistance can I get in Chelsea?+

Chelsea buyers can potentially stack multiple programs for significant assistance. The MassDREAMS grant offers up to $50,000 for buyers earning under 100% AMI or $35,000 for those earning 100-135% AMI. MassHousing Down Payment Assistance provides up to $30,000 at 0% interest for buyers under 60% AMI. The City of Chelsea offers up to $10,000 as a forgivable loan, and the North Suburban Consortium provides an additional $10,000 in DPA. The MAHA STASH First-Gen Home Program offers up to $20,000 for first-generation homebuyers. Combined, eligible buyers could access over $70,000 in assistance.

Do I have to be a first-time homebuyer to qualify?+

Yes, most programs in Chelsea require first-time buyer status, which typically means you have not owned a home in the past three years. The MassDREAMS grant, MassHousing DPA, City of Chelsea DPA, North Suburban Consortium DPA, and ONE Mortgage all require first-time buyer status. However, some exceptions exist for veterans and buyers purchasing in certain targeted areas.

What is the maximum home price I can pay?+

MassHousing programs set purchase price limits that vary by property type and are updated periodically. As of recent guidelines, the single-family purchase price limit in the Chelsea area is approximately $838,717. The median home price in Chelsea is around $550,000, which falls within program limits. The City of Chelsea DPA requires purchasing a condominium or single-family home for use as a primary residence.

What homebuyer education is required?+

All major programs require completion of a HUD-approved homebuyer education course before closing. Chelsea Restoration Corporation is the primary local provider and offers courses in both English and Spanish. Contact them at 617-889-2277 to register for their next course.

What makes Chelsea special for homebuyer assistance?+

Chelsea is one of Massachusetts 26 Gateway Cities, giving residents access to MassDREAMS with up to $50,000 in grants. Chelsea is also one of eight communities in the North Suburban Consortium, providing an additional $10,000 in DPA. On top of that, the city runs its own $10,000 forgivable loan program. This layering of city, regional, and state programs makes Chelsea one of the strongest cities in Massachusetts for total homebuyer assistance.

What is the Comunidades Enraizadas Community Land Trust?+

Comunidades Enraizadas is a community land trust in Chelsea that provides permanently affordable homeownership through 99-year renewable ground leases. The nonprofit retains ownership of the land while homebuyers purchase and own their homes, keeping prices permanently affordable. They are currently partnering with Habitat for Humanity Greater Boston to build affordable homes on Orange Street in Chelsea. Contact them through ceclt.org for upcoming homeownership opportunities.

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