See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 4, 2026
Homebuyer Programs in Peabody, MA (2026)
Peabody is a Gateway City on Massachusetts' North Shore in Essex County with a population of about 54,700 and a median home price around $640,000. As a designated Gateway City, Peabody homebuyers have access to some of the strongest assistance programs in the state, including the MassDREAMS grant of up to $50,000 and MassHousing Down Payment Assistance of up to $30,000. Additional help is available through the Essex County Homebuyer Assistance Program providing up to $50,000 and the North Shore HOME Consortium Down Payment Assistance offering up to $5,000 as a forgivable loan. The ONE Mortgage Program also offers a 30-year fixed-rate mortgage with just 3% down and no PMI. By stacking state, county, and consortium programs, eligible Peabody buyers can access significant assistance to make homeownership more affordable.
County Programs in Essex County
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Essex County Homebuyer Assistance Program (HAP) | Deferred Loan | Up to $50,000 | No | View → |
| North Shore HOME Consortium Down Payment Assistance | Forgivable Loan | Up to $5,000 | Yes | View → |
- Type:
- Deferred Loan
- Amount:
- Up to $50,000
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $5,000
- 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 → |
- 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
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 → |
- 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:
- 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
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 → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable 30-year mortgage with no traditional down payment required; sweat equity replaces down payment
- First-time only:
- Yes
How to Apply
Step 1: Check your eligibility. Most programs require household income at or below 80% to 135% of the area median income (AMI). Peabody's Gateway City designation expands income eligibility for MassHousing and MassDREAMS programs.
Step 2: Complete homebuyer education. A HUD-approved homebuyer education course is required for most programs. North Shore Community Action Programs (NSCAP) serves the Peabody area and can connect you with local courses. Contact them at 978-531-0767.
Step 3: Contact the North Shore HOME Consortium. Staff can walk you through available down payment assistance options for Peabody residents. Reach them at 978-232-9410 or info@northshoremahomeprograms.com.
Step 4: Get pre-approved for a mortgage. Contact a MassHousing-approved lender or a ONE Mortgage participating lender to get pre-approved and determine which state programs you qualify for. Call MassHousing at 888-843-6432 for lender referrals.
Step 5: Find a home within program guidelines. Some programs have purchase price limits. Work with your lender to confirm the maximum purchase price for the programs you are using.
Step 6: Submit your applications. Your lender will help you apply for MassHousing DPA or MassDREAMS at the time of your mortgage application. For the Essex County HAP and North Shore HOME Consortium DPA, contact those agencies directly to coordinate your application timeline.
Frequently Asked Questions
How much down payment assistance can I get in Peabody?+−
Do I have to be a first-time homebuyer to qualify?+−
What is the maximum home price I can pay?+−
What homebuyer education is required?+−
What makes Peabody special for homebuyer assistance?+−
Can I combine multiple programs?+−
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