See programs you qualify for

Get Matched Free →

Homebuyer Programs in Peabody, MA (2026)

Last updated April 4, 2026 | Population: 54,695 | Median home price: $640,000 | Est. closing costs: $13,000 - $19,000

Skyline of Peabody, MA

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.

Top Homebuyer Programs in Peabody

Essex County Homebuyer Assistance Program (HAP)
Type:
Deferred Loan
Amount:
Up to $50,000
First-time only:
No
North Shore HOME Consortium Down Payment Assistance
Type:
Forgivable Loan
Amount:
Up to $5,000
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
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
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 (AMI). Peabody's Gateway City designation expands income eligibility for MassHousing and MassDREAMS programs.

  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. 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

Related Cities

Related Articles