See programs you qualify for

By Tyler Thompson · Licensed Real Estate Agent · Updated April 4, 2026

Homebuyer Programs in Somerville, MA (2026)

Population: 82,773 | Median home price: $1,000,000 | Est. closing costs: $20,000 - $30,000

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.

City 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 →

Somerville Affordable Housing Trust Fund Homebuyer Assistance

Type:: Deferred Loan
Amount:: Closing cost and down payment assistance (amount varies based on available funding)
First-time only:: Yes

Somerville Inclusionary Housing Program

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

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 →

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

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 →

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

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

Nonprofit Programs

Program Name	Type	Amount	First-Time Only	Details
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 →

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

Somerville Community Land Trust Homeownership Program

Type:: Zero-Interest Loan
Amount:: Permanently affordable homes sold below market rate through community land trust model
First-time only:: Yes

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15 programs available in Somerville. See which ones you qualify for.

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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.

Frequently Asked Questions

How much down payment assistance can I get in Somerville?+

Somerville buyers can access several programs. The Somerville Affordable Housing Trust Fund provides closing cost and down payment assistance to first-time homebuyers with incomes up to 110% AMI. The Inclusionary Housing Program offers below-market-rate units through lottery. At the state level, MassHousing offers up to $30,000 in DPA for buyers below 60% AMI, or up to $25,000 for higher-income tiers. MassDREAMS provides grants up to $50,000 for buyers at or below 100% AMI. First-generation buyers may also receive up to $20,000 from the MAHA STASH First-Gen Home Program.

Do I have to be a first-time homebuyer to qualify?+

Most Somerville programs require first-time buyer status. However, Somerville is one of the communities where MassHousing Operation Welcome Home does not require first-time buyer status, making it accessible to repeat buyers who are veterans or active-duty military. The ONE Mortgage Program also generally requires first-time buyer status.

What are the income limits for Somerville homebuyer programs?+

Income limits vary by program. The Somerville Inclusionary Housing Program offers units at 80% AMI and some up to 110% AMI. The Affordable Housing Trust Fund assists buyers up to 110% AMI. MassHousing DPA is available to buyers earning up to 135% AMI. MassDREAMS offers up to $50,000 for buyers at or below 100% AMI and up to $35,000 for those between 100-135% AMI.

What is the Somerville Community Land Trust?+

The Somerville Community Land Trust (SCLT) creates permanently affordable homeownership by acquiring land and selling homes at affordable prices while retaining ownership of the land. Their Union Square project welcomed five families in 2023, and they are developing new homes at 14-16 Sewall Street in Winter Hill in partnership with Habitat for Humanity Greater Boston. Homes remain permanently affordable because the land trust model removes land costs from the purchase price.

Where can I take homebuyer education in Somerville?+

Somerville Community Corporation is a HUD-approved housing counseling agency offering first-time homebuyer courses. Contact Renee Taylor at 617-410-9907 or rtaylor@somervillecdc.org. Their courses satisfy the education requirement for Somerville city programs, MassHousing, and the ONE Mortgage Program.

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