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Get Matched Free →Homebuyer Programs in Somerville, MA (2026)
Somerville is a vibrant, densely populated city in Middlesex County just north of Boston, known for its arts scene, diverse neighborhoods, and excellent transit access. With a median home price around $1,000,000, homeownership here is a significant investment, but multiple city, state, and nonprofit programs can help. The City of Somerville offers below-market-rate homes through its Inclusionary Housing Program for households earning up to 110% AMI, and the Somerville Affordable Housing Trust Fund provides closing cost and down payment assistance. The Somerville Community Land Trust creates permanently affordable homes in the community. At the state level, buyers can access MassHousing Down Payment Assistance of up to $30,000, the MassDREAMS grant of up to $50,000, and the ONE Mortgage Program with just 3% down and no PMI. First-generation homebuyers may also qualify for up to $20,000 through the MAHA STASH First-Gen Home Program. By combining these resources, eligible Somerville buyers can stack meaningful assistance toward homeownership.
Top Homebuyer Programs in Somerville
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Somerville Affordable Housing Trust Fund Homebuyer Assistance | Deferred Loan | Closing cost and down payment assistance (amount varies based on available funding) | Yes | View → |
| Somerville Inclusionary Housing Program | Grant | Below-market-rate homeownership units available through lottery; prices set based on affordability for households at 80% to 110% AMI | Yes | View → |
| 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 → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | 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 → |
| Habitat for Humanity Greater Boston Homeownership Program | Zero-Interest Loan | Affordable mortgage with monthly housing costs capped at 30% of gross monthly income | No | 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 → |
| Somerville Community Land Trust Homeownership Program | Zero-Interest Loan | Permanently affordable homes sold below market rate through community land trust model | Yes | View → |
| 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:
- Deferred Loan
- Amount:
- Closing cost and down payment assistance (amount varies based on available funding)
- First-time only:
- Yes
- Type:
- Grant
- Amount:
- Below-market-rate homeownership units available through lottery; prices set based on affordability for households at 80% to 110% AMI
- First-time only:
- Yes
- 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:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- 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
- Type:
- Zero-Interest Loan
- Amount:
- Affordable mortgage with monthly housing costs capped at 30% of gross monthly income
- First-time only:
- No
- Type:
- Grant
- Amount:
- Up to $10,000 grant in Boston; up to $20,000 in other Massachusetts cities
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- Amount:
- Permanently affordable homes sold below market rate through community land trust model
- First-time only:
- Yes
- 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
How to Apply
- Step 1:
Check your eligibility. Most Somerville city programs require household income at or below 80% AMI, with some units available up to 110% AMI. MassHousing DPA is available to buyers earning up to 135% AMI.
- Step 2:
Complete homebuyer education. Somerville Community Corporation offers HUD-approved first-time homebuyer courses and counseling. Contact Renee Taylor at 617-410-9907 or rtaylor@somervillecdc.org to enroll.
- Step 3:
Monitor Somerville affordable housing opportunities. Visit the City of Somerville Inclusionary Housing Program page for available below-market-rate units and open lotteries. Also check the Somerville Community Land Trust website for permanently affordable homes.
- Step 4:
Get pre-approved for a mortgage. Contact a MassHousing-approved lender or a ONE Mortgage participating lender to determine your borrowing power and program eligibility. Somerville Municipal Federal Credit Union also offers first-time homebuyer programs.
- Step 5:
Apply for assistance programs. Submit lottery applications for inclusionary or SCLT units when available. Contact the Somerville Affordable Housing Trust Fund for closing cost assistance. Apply for MassHousing DPA or MassDREAMS through your lender.
- Step 6:
Close on your home. Coordinate all assistance funds at closing with your lender and the City of Somerville Housing Division. Contact inclusionary@somervillema.gov for questions about deed-restricted units.