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Get Matched Free →Homebuyer Programs in Chelsea, MA (2026)
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.
Top Homebuyer 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 → |
| 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 → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | 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 → |
| 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 → |
| 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:
- Forgivable Loan
- Amount:
- Up to $10,000
- First-time only:
- Yes
- 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
- 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:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- 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
- Type:
- Zero-Interest Loan
- Amount:
- Permanently affordable home purchase through 99-year renewable ground lease
- 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
- 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
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.