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Homebuyer Programs in Melrose, MA (2026)

Last updated April 5, 2026 | Population: 30,870 | Median home price: $920,000 | Est. closing costs: $18,500 - $27,500

Skyline of Melrose, MA

Melrose is a compact, walkable city in Middlesex County just seven miles north of downtown Boston, known for its tree-lined streets and strong school system. With a median home price around $920,000, buying here is a significant investment, but several assistance programs can help. The North Suburban Consortium offers up to $10,000 in forgivable down payment assistance for income-qualified first-time buyers purchasing in Melrose. State programs through MassHousing provide up to $30,000 in additional help, and the MAHA STASH program offers up to $20,000 in matched-savings grants for first-generation buyers. By stacking local, state, and federal programs, eligible Melrose homebuyers could access over $50,000 in combined assistance.

Top Homebuyer Programs in Melrose

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
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
FHLBank Boston Lift Up Homeownership
Type:
Grant
Amount:
Up to $40,000 grant
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
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. Most programs require household income at or below 80% of Area Median Income (AMI) and first-time homebuyer status, meaning you have not owned a home in the past three years.

  2. Step 2:

    Complete homebuyer education. Community Teamwork, Inc. offers HUD-certified first-time homebuyer workshops covering budgeting, mortgage options, and the closing process. Classes cost $75 per household and are available in English, Spanish, and Khmer.

  3. Step 3:

    Contact the City of Melrose Affordable Housing office. Reach Maya Noviski at 781-979-4196 or mnoviski@cityofmelrose.org to learn about the North Suburban Consortium Down Payment Assistance program and current funding availability.

  4. Step 4:

    Get pre-approved for a mortgage. Work with a MassHousing-approved lender to determine your borrowing power and whether you qualify for MassHousing DPA of up to $30,000. Metro Credit Union in Melrose also participates in several DPA programs.

  5. Step 5:

    Find a home within program limits. The North Suburban Consortium sets a purchase price limit of $858,000 for existing or new single-family homes in Middlesex County.

  6. Step 6:

    Submit your applications and close. Your lender and housing counselor will coordinate the DPA funds to be applied at closing. The NSC loan is forgiven at 20% per year over five years of owner-occupancy.

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