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Franklin, MA First-Time Homebuyer Programs & Down Payment Assistance 2026

Last updated April 5, 2026 | Population: 34,538 | Median home price: $635,000 | Est. closing costs: $12,500 - $19,000

Skyline of Franklin, MA

Franklin is a thriving town in Norfolk County, Massachusetts, located about 35 miles southwest of Boston. With a population of approximately 34,538, Franklin is known for its excellent school system, vibrant downtown, and strong sense of community. The median home price in Franklin is around $635,000, making it an attractive yet competitive market for first-time buyers. Fortunately, Franklin residents can access multiple down payment assistance programs at the federal, state, and local level. The Town of Franklin Affordable Homeownership Program offers below-market purchase prices on deed-restricted homes through the Municipal Affordable Housing Trust. Old Colony Habitat for Humanity also serves Franklin with affordable homeownership opportunities. State programs like MassHousing Down Payment Assistance (up to $30,000), ONE Mortgage, and MassDREAMS grants are available to eligible buyers throughout Massachusetts. These programs can significantly reduce the upfront costs of purchasing a home in Franklin.

Top Homebuyer Programs in Franklin

Town of Franklin Affordable Homeownership Program
Type:
Forgivable Loan
Amount:
Below-market purchase price on deed-restricted affordable homes; prices set based on HUD income guidelines
First-time only:
Yes
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
Old Colony Habitat for Humanity Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable home purchase with affordable mortgage terms
First-time only:
No
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

  2. Review the income limits and requirements for each program you are interested in. Most programs require you to be a first-time homebuyer or not have owned a home in the past three years. Income limits are typically based on the HUD Area Median Income for the Boston-Cambridge-Newton metropolitan area.

  3. Step 2:

    Complete Homebuyer Education

  4. Many programs require completion of a HUD-approved homebuyer education course. NeighborWorks Housing Solutions and other approved counseling agencies in Massachusetts offer these courses in person and online. Complete this step early in your home search process.

  5. Step 3:

    Get Pre-Approved for a Mortgage

  6. Work with a lender who is familiar with Massachusetts down payment assistance programs. MassHousing partners with over 80 lenders statewide. Contact MassHousing at 888-843-6432 or visit masshousing.com to find a participating lender near Franklin.

  7. Step 4:

    Apply for Assistance Programs

  8. For the Town of Franklin Affordable Homeownership Program, watch for available units on the Town of Franklin website and apply on a first-come, first-served basis. For Old Colony Habitat for Humanity, contact them at family@oldcolonyhabitat.org. For state programs like MassHousing DPA and ONE Mortgage, apply through a participating lender.

  9. Step 5:

    Find a Home and Close

  10. Once pre-approved and enrolled in assistance programs, work with a real estate agent to find an eligible property in Franklin. Your lender will coordinate the assistance funds with your mortgage closing.

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