See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 3, 2026
Homebuyer Programs in Worcester, MA (2026)
Worcester is the second-largest city in Massachusetts and one of the state's designated Gateway Cities, with a median home price of approximately $450,000. The city's Down Payment Assistance Program offers up to $25,000 in CDBG-funded grants for first-time buyers earning at or below 80% AMI. As a Gateway City, Worcester buyers also qualify for MassHousing's expanded down payment assistance of up to $30,000 as a 0% deferred loan for those under 60% AMI, or up to $25,000 for buyers earning up to 135% AMI. The ONE Mortgage program through MHP provides 30-year fixed-rate loans with just 3% down and no PMI. First-generation homebuyers can tap the FHLBank Boston Lift Up Homeownership grant for up to $40,000 and the MAHA STASH program for up to $20,000. By combining city, state, and nonprofit programs, eligible Worcester buyers could stack well over $100,000 in assistance.
City Programs in Worcester
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Worcester Down Payment Assistance Program | Grant | Up to $25,000 | Yes | View → |
- Type:
- Grant
- Amount:
- Up to $25,000
- 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 |
|---|---|---|---|---|
| FHLBank Boston Lift Up Homeownership | Grant | Up to $40,000 grant | Yes | View → |
| Habitat for Humanity MetroWest/Greater Worcester Homeownership Program | Zero-Interest Loan | Affordable mortgage with 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 → |
- Type:
- Grant
- Amount:
- Up to $40,000 grant
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- Amount:
- Affordable mortgage with 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
How to Apply
Step 1: Check your eligibility. The Worcester DPA program requires household income at or below 80% AMI. MassHousing DPA extends to 135% AMI for Worcester as a Gateway City. First-generation homebuyer programs have their own criteria.
Step 2: Complete homebuyer education. You must complete a HUD-certified Massachusetts Homeownership accredited housing education workshop. RCAP Solutions in Worcester offers homebuyer education classes and one-on-one counseling. Contact them at (978) 630-6772 or fthb@rcapsolutions.org.
Step 3: Get pre-approved for a mortgage. Work with a MassHousing-approved lender or a ONE Mortgage participating lender. Bay State Savings Bank and Worcester Credit Union are local options that participate in state programs. Contact MHP at 1-800-752-7131 for a full lender list.
Step 4: Find a home in Worcester. The city DPA program requires the property to be located in Worcester and in habitable condition. Begin your home search with your pre-approval in hand.
Step 5: Apply for down payment assistance. Contact the City of Worcester Housing and Neighborhood Development at (508) 799-1400 to apply for the city DPA. Your lender will help you apply for MassHousing DPA simultaneously.
Step 6: Close on your home. Your lender and the city will coordinate disbursement of all assistance funds at closing. The city DPA can cover up to 50% of the required down payment plus closing costs.
Frequently Asked Questions
How much down payment assistance can I get in Worcester?+−
Do I have to be a first-time homebuyer to qualify?+−
What is the income limit for Worcester programs?+−
What homebuyer education is required?+−
What does it mean that Worcester is a Gateway City?+−
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