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About the Springfield Down Payment and Closing Cost Assistance Program
The Springfield Down Payment and Closing Cost Assistance Program gives income-eligible buyers a $7,500 zero-interest forgivable loan toward the down payment or closing costs on a home in Springfield, Massachusetts. The City of Springfield Office of Housing runs it with HUD funds and has operated a down payment program for more than 25 years. It is a small, city-only layer that buyers often place on top of statewide help such as MassHousing's down payment loan.
To qualify for the Springfield Down Payment and Closing Cost Assistance Program, household income must fall under limits the city sets each year. The limits in effect as of June 1, 2025 are $67,340 for one person, $76,960 for two, $86,580 for three, $96,200 for four and $126,984 for eight, and income from every adult in the home counts. The city describes the program as serving first-time homebuyers. You must finish homebuyer education with a HUD-certified counselor, put in at least 1% of the price from your own funds, and be current on city taxes, fees, fines and municipal liens. The home must be in Springfield and serve as your primary residence. The rule that surprises buyers most is timing: the Office of Housing must approve the application before you close, and it will not accept one after closing.
The loan carries 0% interest and no monthly payments. Nothing is forgiven during the first 5 years; after that, 20% ($1,500) is forgiven at the end of each of years 6 through 10. Selling, refinancing, transferring title or moving out early triggers prorated repayment. MassHousing's DPA lends up to $30,000 at 0%, but that loan is repaid at sale, refinance or payoff and is never forgiven. The city's web page also cites $10,000 to $20,000, so confirm the current amount.
How much assistance
Eligibility
- Income limits: Limits set annually. As of June 1, 2025: 1 person $67,340; 2 $76,960; 3 $86,580; 4 $96,200; 5 $103,896; 6 $111,592; 7 $119,288; 8 $126,984. Income of all adult household members counts.
- First-time buyer required: Yes — Must not have owned a home in the past 3 years.
- Geographic restrictions: Must purchase a home within the City of Springfield. Eligible properties include single-family homes, duplexes, triplexes, and 4-unit properties with owner occupancy.
- Homebuyer education required: Yes
How to Apply for Springfield Down Payment and Closing Cost Assistance Program
Step 1: Check your income and current funding
Compare your household income with the city limits, which as of June 1, 2025 run from $67,340 for one person to $96,200 for four and $126,984 for eight. Count every household member age 18 or older, not just the buyers. The city's web page has warned that funds would likely not be available before August 7, 2026, so call the Office of Housing at (413) 787-6500 to confirm money is available for your closing date.
Step 2: Complete homebuyer education
Take a homebuyer education course from a HUD-certified housing counselor at a HUD-approved agency. The city names Cambridge Credit Counseling Center, Holyoke Housing Authority, Springfield Partners for Community Action, Valley Community Development Corporation and Way Finders as local options. If you are buying a two- or three-family home, you also need a landlord training course. Keep both certificates, because the application will not be processed without them.
Step 3: Get approved for a mortgage
Apply with a lender before you approach the city, because the Office of Housing asks buyers to apply only after they are approved for a loan and have found a home. Tell the lender you plan to use the city loan. Total loan-to-value can't exceed 103% under city rules, so a lender combining the city loan with MassHousing DPA or another second loan has to size everything under that cap.
Step 4: Sign a purchase agreement and deposit 1%
Find a condominium, single-family, two-family or three-family home in Springfield that you will live in as your primary residence. The city's web page says up to 4 units may qualify, so confirm a four-family before you make an offer. Your real estate deposit check must equal at least 1% of the price, or $3,000 on a $300,000 home, and an appraisal supporting the price is required before closing.
Step 5: Submit the application with all documents
Apply online at cognitoforms.com/CityOfSpringfield1/DownPaymentAssistance, or mail or bring a paper application to 1600 East Columbus Ave., 1st Floor, Springfield. Include the signed purchase agreement, a copy of the deposit check, two years of signed federal tax returns, 90 days of pay stubs, three months of bank and retirement statements, your education certificates, a W-9 and the signed Verification of City Compliance form.
Step 6: Receive approval and close
The Office of Housing asks for 30 days from the date every document arrives to process the file, then ten business days after approval to cut the check for closing. That means roughly six weeks from a complete application to funds, so set your closing date with that in mind. The $7,500 is disbursed at closing, and forgiveness starts counting from your first full year of owner-occupancy.
Real Cost Example
On a $300,000 home in Springfield, which matches the city's median price in our data, an FHA buyer needs a 3.5% down payment of $10,500. The Springfield Down Payment and Closing Cost Assistance Program adds a $7,500 zero-interest forgivable loan at closing. The buyer must still contribute at least 1% from their own funds, a $3,000 deposit check, so the deposit plus the city loan covers the full $10,500 down payment.
Estimated closing costs in Springfield run $6,000 to $9,000. With only the city loan, the buyer brings the $3,000 deposit plus those closing costs, or about $9,000 to $12,000 in total cash. The city application asks whether the seller is paying closing costs and how much, so any seller credit negotiated in the purchase agreement gets reported to the Office of Housing and reduces cash to close.
A buyer using a MassHousing mortgage could add MassHousing DPA, which lends up to $30,000 at 0% deferred. The city's 103% loan-to-value cap limits total liens to $309,000 here. A $286,500 first mortgage, a $15,000 MassHousing loan and the $7,500 city loan reach that cap, and with the $3,000 deposit they cover the price plus up to $12,000 in closing costs.
Combining With Other Programs
The Springfield Down Payment and Closing Cost Assistance Program is a second loan, so it is usually layered with a first mortgage and sometimes with MassHousing DPA. MassHousing offers up to $30,000 at 0% deferred (Option 1), or up to $25,000 repaid over 15 years at 2% or 3% (Options 2 and 3), in every city and town in Massachusetts. Its DPA requires a MassHousing mortgage and homebuyer education. Paired with the city's $7,500, a buyer could see up to $37,500 in combined help on paper.
The main limit on stacking is the city's 103% loan-to-value cap. On a $300,000 home, the first mortgage plus every assistance loan can't exceed $309,000, so a lender may need to shrink the MassHousing amount. The application also asks whether you have received city assistance before and whether you live in public housing or hold a rental subsidy, so disclose both. Call the Office of Housing at (413) 787-6500 to confirm how your package fits.
Seller-paid closing costs and gift funds are other ways to cut cash to close, and the application asks about both. The Office of Housing also sells newly built homes by lottery. Its 2026 lotteries listed homes priced around $210,000 to $215,000 for households at 80% to 100% of area median income. Watch springfield-ma.gov/housing for new lottery dates.
Pros and Cons
The Springfield Down Payment and Closing Cost Assistance Program charges 0% interest and no monthly payments, and the full $7,500 is forgiven after 10 years of living in the home. The money can go toward the down payment or closing costs, which covers most of the $10,500 FHA down payment on a $300,000 Springfield home. Two- and three-family homes are eligible, with a required landlord training course, so the loan can help buyers into a small rental property. Unlike MassHousing's DPA, which must be repaid at sale or refinance, the city loan disappears entirely if you stay 10 years.
The biggest limitation is the size and timing of the money. At $7,500, the loan covers less than half of the estimated $6,000 to $9,000 in Springfield closing costs plus the down payment, and the city's fiscal-year allocation can run out. The city warned buyers that funds would likely not be available before August 7, 2026. Forgiveness doesn't start until year 6, so selling after 5 years means repaying all $7,500. Buyers who need more should look at MassHousing DPA (up to $30,000) alongside the city loan.
Frequently Asked Questions
How much down payment assistance does Springfield, MA offer?+−
Is Springfield down payment assistance a grant or a loan?+−
What are the income limits for Springfield down payment assistance?+−
Can I combine Springfield down payment assistance with MassHousing DPA?+−
Do I have to repay Springfield down payment assistance if I sell after 7 years?+−
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Program details last verified: October 18, 2026