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Homebuyer Programs in Norwood, MA (2026)

Last updated April 5, 2026 | Population: 30,000 | Median home price: $700,000 | Est. closing costs: $14,000 - $21,000

Skyline of Norwood, MA

Norwood is a suburban town in Norfolk County, Massachusetts, located about 15 miles southwest of Boston, with a population of approximately 30,000 residents. With a median home price around $700,000, Norwood offers a relatively accessible entry point compared to neighboring communities closer to Boston. While the town does not currently offer its own municipal down payment assistance program, buyers here can take advantage of several generous state and nonprofit programs. The MassDREAMS program provides grants of up to $50,000, MassHousing offers up to $30,000 in down payment assistance, and the ONE Mortgage program provides a 30-year fixed-rate loan with just 3% down and no PMI. The FHLBank Boston Lift Up Homeownership program offers up to $40,000 in grants for first-generation buyers, the MAHA STASH program provides up to $20,000, and Needham Bank's Community Loan Program offers discounted rates and bank-paid closing costs in Norwood. By combining these programs, eligible Norwood buyers can potentially access over $70,000 in total assistance.

Top Homebuyer Programs in Norwood

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
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
Needham Bank Community Loan Program
Type:
Repayable Loan
Amount:
Discounted interest rates plus bank-paid closing costs (except escrows and owner's title insurance)
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. Most programs require household income at or below 80% to 135% of the Area Median Income for the Boston-Cambridge-Newton metro area. MassDREAMS serves buyers up to 135% AMI, while the FHLBank Boston Lift Up program targets households up to 120% AMI.

  2. Step 2:

    Complete homebuyer education. Contact a HUD-approved housing counseling agency to enroll in a first-time homebuyer education course. NeighborWorks Housing Solutions serves the South Shore and Greater Boston area and can be reached at (781) 422-4208. The Massachusetts Affordable Housing Alliance (MAHA) also offers courses.

  3. Step 3:

    Get pre-approved for a mortgage. Connect with a MassHousing-approved lender or a ONE Mortgage participating lender to explore affordable loan options. Needham Bank offers a Community Loan Program with discounted rates and bank-paid closing costs for income-eligible buyers in Norwood.

  4. Step 4:

    Ask your lender about FHLBank Boston Lift Up Homeownership. If you are a first-generation homebuyer earning up to 120% AMI, you may qualify for up to $40,000 in grant assistance through a participating FHLBank Boston member bank. The grant is forgivable after five years.

  5. Step 5:

    Explore the MAHA STASH program. First-generation buyers who complete homebuyer education and financial coaching through the Massachusetts Affordable Housing Alliance may qualify for up to $20,000 in grant assistance.

  6. Step 6:

    Contact the Shared Housing Services Office. Norwood participates in a Shared Housing Services Office with Hopkinton, Milton, Medfield, Randolph, and Sharon that can help you find affordable homeownership units in the area.

  7. Step 7:

    Find a home and submit your applications. Work with your lender to identify properties in Norwood that meet program requirements. Apply for all programs you qualify for simultaneously, as processing times vary.

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