See programs you qualify for

By Tyler Thompson · Licensed Real Estate Agent · Updated April 5, 2026

Homebuyer Programs in Gloucester, MA (2026)

Population: 30,100 | Median home price: $715,000 | Est. closing costs: $14,500 - $21,500

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.

City 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 →

Gloucester First Time Homebuyer Down Payment Assistance Program

Type:: Deferred Loan
Amount:: Up to $15,000
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 →

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
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 →

Essex County Habitat for Humanity Homeownership Program

Type:: Zero-Interest Loan
Amount:: Affordable 30-year mortgage with no traditional down payment required; sweat equity replaces down payment
First-time only:: Yes

Harborlight Homes Affordable Homeownership Program

Type:: Deferred Loan
Amount:: Affordable condominiums priced below market value with permanent affordability restrictions
First-time only:: Yes

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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14 programs available in Gloucester. See which ones you qualify for.

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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.

Frequently Asked Questions

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

Gloucester buyers can stack multiple programs. The city's own First Time Homebuyer Program provides up to $15,000 as a 0% interest deferred loan. MassHousing offers up to $30,000 in state down payment assistance. The MAHA STASH program provides up to $20,000 for first-generation homebuyers. Combined, eligible buyers could access over $45,000 in direct assistance, plus the ONE Mortgage Program allows just 3% down with no PMI.

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

Yes, for most programs. The Gloucester city DPA, MassHousing DPA, and the ONE Mortgage all require first-time buyer status, defined as not having owned a home in the past three years. The MAHA STASH program requires first-generation homebuyer status, meaning neither you nor your parents have owned a home in the US. Federal programs like FHA and VA loans do not require first-time buyer status.

How does the Gloucester city DPA program work?+

The Gloucester First Time Homebuyer Program covers 50% of your required down payment and/or closing costs, up to $15,000. It is a 0% interest deferred loan, meaning no monthly payments are required. The loan is repaid when you sell, rent out the property, transfer title, or it is no longer your primary residence. You must have household income at or below 80% of area median income and purchase a 1-4 family home in Gloucester. Contact the Grants Division at 978-325-5230 or grants@gloucester-ma.gov.

What are the affordable condos available through Harborlight Homes?+

Harborlight Community Partners administers 51 permanently affordable condominiums in four Gloucester locations: Haven Terrace (26 units), Babson Block on Granite Street (15 units), Forbes School at 47 Washington St (8 units), and 22 Taylor St (2 units). These are deed-restricted to remain affordable through a community land trust model. Buyers must be first-time homebuyers with household income at or below 80% of area median income. Contact Harborlight Community Partners for availability.

What homebuyer education is required?+

Most Massachusetts assistance programs require completion of a HUD-approved homebuyer education course. The Gloucester city DPA program requires homebuyer education completion. You can find MassHousing-approved and HUD-certified course providers on the MassHousing website. Several North Shore organizations offer these courses.

Am I eligible for the MassDREAMS grant in Gloucester?+

MassDREAMS offers up to $50,000 in grants but is restricted to buyers who currently reside in one of 29 designated communities. Gloucester is not on that list. However, the city's own $15,000 DPA program combined with MassHousing DPA (up to $30,000) provides strong alternative assistance for Gloucester buyers.

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