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Get Matched Free →Homebuyer Programs in Gloucester, MA (2026)
Gloucester is a historic coastal city of about 30,100 residents in Essex County on Cape Ann, known for its fishing heritage and scenic harbors. With a median home price around $715,000, buying here is a significant investment, but Gloucester stands out for having its own city-funded down payment assistance. The Gloucester First Time Homebuyer Program offers up to $15,000 as a 0% interest deferred loan covering 50% of the required down payment and closing costs. On top of that, MassHousing provides up to $30,000 in state down payment assistance, and the ONE Mortgage Program offers affordable 30-year mortgages with just 3% down and no PMI. Harborlight Homes administers 51 permanently affordable condominiums in four Gloucester locations, and Essex County Habitat for Humanity builds affordable homes in the area. By combining city, state, and federal programs, eligible Gloucester buyers could access over $45,000 in total assistance.
Top Homebuyer Programs in Gloucester
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Gloucester First Time Homebuyer Down Payment Assistance Program | Deferred Loan | Up to $15,000 | 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 → |
| Essex County Habitat for Humanity Homeownership Program | Zero-Interest Loan | Affordable 30-year mortgage with no traditional down payment required; sweat equity replaces down payment | Yes | View → |
| Harborlight Homes Affordable Homeownership Program | Deferred Loan | Affordable condominiums priced below market value with permanent affordability restrictions | Yes | 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:
- Deferred Loan
- Amount:
- Up to $15,000
- 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:
- Affordable 30-year mortgage with no traditional down payment required; sweat equity replaces down payment
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Affordable condominiums priced below market value with permanent affordability restrictions
- First-time only:
- Yes
- 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. The Gloucester First Time Homebuyer Program requires household income at or below 80% of area median income. MassHousing's income limit for Essex County is approximately $205,335. Review the requirements for each program to see which ones fit your situation.
- Step 2:
Complete homebuyer education. Massachusetts requires a HUD-approved homebuyer education course for most assistance programs. The North Shore area has several approved course providers. Check MassHousing's website for a list of approved courses near Gloucester.
- Step 3:
Contact the Gloucester Grants Division. The city administers its own $15,000 DPA program. Reach them at grants@gloucester-ma.gov or 978-325-5230 to learn about current availability and begin the application process. Allow a minimum of 6 weeks from your signed Purchase and Sale agreement for processing.
- Step 4:
Get pre-approved for a mortgage. Work with a MassHousing-approved lender or a ONE Mortgage participating lender. Ask about layering the Gloucester city DPA with state programs to maximize your total assistance.
- Step 5:
Find a home in Gloucester. The city DPA requires purchasing a 1-4 family home within Gloucester city limits. Also check with Harborlight Community Partners about available affordable condominiums in their four Gloucester developments.
- Step 6:
Submit your assistance applications. Once you have a signed purchase and sales agreement, submit your city DPA application to the Grants Division and your state DPA applications through your lender. Plan your closing timeline to allow at least 6 weeks for the city program.