Massachusetts expands $25,000 zero-interest down payment aid to buyers up to 135% of AMI

An administration official announced a $25 million expansion of MassHousings down payment assistance program that will make up to $25,000 available to first-time homebuyers at 0% interest, with repayment deferred until sale or refinance.

The official said the expanded pool will reach buyers with incomes up to 135% of area median income (AMI), and gave an example that in eastern Massachusetts that cap could be about $205,000 a year. "We're going to make this available to anybody who is all the way up to 135% of area median income," the official said, framing the move as part of the administrations broader effort to increase homeownership and lower housing costs.

Secretary of Housing and Livable Communities Juan Matias said the program builds on existing MassHousing and Massachusetts Housing Partnership offerings, including One Mortgage and One Plus. "As of today, more first-time homebuyers can access up to $25,000 at 0% interest with deferred repayment," Matias said, adding that the zero-percent rate could save buyers up to $31,000 over the life of the loan.

MassHousing CEO Crystal Carneygae explained program mechanics and financing. She said down payment assistance is commonly due upon sale or refinance and described the program as currently financed from existing MassHousing resources, not the states operating budget. "It's at a 0% interest rate," Crystal said; "it's really due upon sale or refinance." She also noted MassHousing has reallocated funds over time as need has grown.

Two homeowners who used the program spoke about its impact. Carrie O'Neil, a single mother, said the program allowed her and her son to stop moving frequently and find a stable home. Alexis Lasanta, who bought in South Holyoke, described the program as making a long-held dream possible for his family.

Officials said the expansion is part of a suite of actions to increase housing supply and affordability, including permitting reforms, tax incentives for developers, accessory dwelling unit policy changes and an aim to accelerate conversions of unused office buildings into homes. The administration also said there are about 100,000 homes currently in the states pipeline.

The administration urged interested residents to check MassHousings website for eligibility details. Event speakers emphasized the expansion is intended to broaden access to homeownership, including middle-income households, and to complement rental-stability efforts.

Whats next: the announcement details are available on MassHousings website; officials said the program uses existing MassHousing funds and did not say a start or sunset date for the expanded funding during the event.