Straight talk on mortgages from a loan officer who's done it for 10+ years.
If you've been shopping for a home in 2026, you've probably seen the pitch: "Ask about a 2-1 buydown!" The first-year payment looks hundreds of dollars lower than you expected, and suddenly the house feels affordable. It's a genuinely useful tool — but the way it's often presented, leading with that eye-catching year-one number, can hide what actually happens later.
If you're trying to buy your first home in Boston, there's a program that can put up to $50,000 toward your purchase — and a surprising number of eligible buyers have never heard of it. It's the City of Boston's First-Time Homebuyer Program, and unlike a loan, the assistance comes as a grant. As an approved participating lender for the program, I help buyers use it, and I want to walk you through exactly how it works and whether you qualify. What the Program Actually Offers The City of Boston provides income-eligible first-time buyers with a grant toward their down payment. The amount depends on your income relative to the Area Median Income (AMI): Under 100% of AMI: a grant of 3% of the purchase price, up to a maximum of $50,000 — plus closing costs, if applicable. Between 101% and 135% of AMI: a grant of 2% of the purchase price, up to a maximum of $35,000. Deed-restricted properties: the grant is 2% of the purchase price regardless of income tier. The key word is grant. This isn't a second loan you pay back on a monthly basis — it's assistance toward getting you into the home. That's what makes this program so valuable, and why it's worth understanding whether you're eligible before you write off homeownership in Boston as out of reach. Who Qualifies To be eligible for the City of Boston First-Time Homebuyer grant, you generally need to meet all of the following: Be a first-time homebuyer — which the city defines as not having owned a home at any point in the last three years. So if you owned previously but have been renting for three-plus years, you may still qualify. Buy within the city of Boston — the property has to be inside Boston's city limits. Buy an eligible property type — a one- to three-family home or an agency-approved condominium. For a multi-family, one unit must be vacant so you can move in. Live there — the home must be your primary residence. Meet the income limits — household income under 135% of AMI, with the larger grant reserved for those under 100% of AMI. Meet the asset limit — total household assets must be at or below $100,000. This includes checking, savings, stocks, and bonds, but generally does not count most retirement accounts (401k, IRA, and similar) or college savings. The program is need-based, so buyers above that asset level may be deemed ineligible. Complete the required homebuyer education — you'll need to finish a CHAPA-approved Homebuying 101 class, and register for the follow-up HO201 course within 90 days of your purchase. Have a qualifying loan — the program is for a 30-year purchase mortgage (up to 97% loan-to-value). It's not available for refinances, and certain loan types aren't eligible. You also can't receive cash back at closing. Put in a small amount of your own funds — you'll need a minimum contribution from your own money: 1.5% of the purchase price on a one- or two-family home or condo, or 3% on a three-family. The grant helps cover the rest of your down payment and closing costs. Use a participating lender — you must get your first mortgage pre-approval from one of the program's approved lenders, and the loan has to meet Fannie Mae general loan limits. That last point is where I come in — I'm an approved participating lender for this program, so I can get you pre-approved in a way that keeps you eligible for the grant. Which Boston Neighborhoods Are Eligible? The home has to be within Boston city limits, which covers a wide range of neighborhoods — many of them exactly where first-time buyers are looking. Eligible areas include: Dorchester, Roslindale, Hyde Park, Mattapan, West Roxbury, Jamaica Plain, Roxbury, East Boston, South Boston, Charlestown, Allston/Brighton, Fenway/Kenmore, the South End, Back Bay/Beacon Hill, and the Central neighborhoods. That's a lot of Boston — and it includes many of the more attainable neighborhoods where a first-time buyer with grant assistance can realistically compete. If you've been assuming Boston itself is out of reach, the combination of an eligible neighborhood and up to $50,000 in grant money can change that math considerably. Wondering if you qualify for up to $50,000? The eligibility rules have a few moving parts — income, assets, property type. Let's spend fifteen minutes figuring out whether this grant could work for your purchase. As a participating lender, I can walk you through the whole thing. Book a free 15-minute call → How Area Median Income Works (In Plain Terms) The income limits are tied to Area Median Income, which sounds complicated but is straightforward once you see it. AMI is the midpoint income for the Boston area, adjusted for your household size. The city uses percentages of that figure to set who qualifies and for how much. Because AMI depends on your household size and gets updated periodically, the exact dollar cutoffs change. Rather than guess at a number that might be stale by the time you read this, the practical move is to have someone check your specific household against the current limits — which takes about two minutes. The headline to remember: this program is aimed at everyday working buyers, and the income ceiling (135% of AMI) is high enough that a lot of middle-income Boston households qualify. Don't assume you earn too much until you've actually checked. The Steps to Actually Get It Here's the order of operations, because doing these in the wrong sequence can cost you eligibility: Complete the Homebuying 101 class through the Boston Home Center. This is required for any of the city's assistance programs, so start it early. Get pre-approved with a participating lender (like me). Your loan needs to meet the program's requirements, so this step matters before you shop. Find an eligible home in Boston — a one- to three-family or condo that will be your primary residence. Apply for the grant through the Boston Home Center. The full program details and application live on the city's site at boston.gov. But the fastest way to know if this is realistic for you is a quick conversation — I can tell you early whether you're likely to qualify before you invest time in the class and the paperwork. Can You Combine It With Other Programs? Yes — and this is where the real buying power comes in. The City of Boston grant can often be layered with other assistance, most notably MassHousing's down payment assistance program, which offers additional funds. Stacking programs is exactly how buyers who thought they'd never afford Boston end up closing on a home there. That said, combining programs has rules — income qualification has to line up across each program, and some assistance limits things like seller concessions. This is precisely the kind of coordination a participating lender handles, and getting it right is the difference between a smooth close and a stalled one. If you want to understand what a Boston purchase could really look like with assistance stacked, that's a conversation worth having. Frequently Asked Questions Is the City of Boston First-Time Homebuyer grant paid back? The grant portion is a true grant — it's forgiven, with no repayment and no monthly payment. It's assistance toward getting you into the home, not a loan you carry. As always, confirm the specific terms for your situation with a participating lender or the Boston Home Center, since programs can have conditions. How much money can I get? Up to $50,000 (3% of the purchase price) if your household income is under 100% of AMI, or up to $35,000 (2%) if you're between 101% and 135% of AMI. Deed-restricted properties are 2% regardless of income. Do I have to be a first-time buyer? You need to not have owned a home in the last three years. So a previous owner who has been renting for at least three years can still count as a first-time buyer under the program's definition. What kind of home can I buy with it? A one- to three-family home or a condominium, located within the city of Boston, that will be your primary residence. Can I combine it with MassHousing down payment assistance? Often yes — the Boston grant can be layered with MassHousing's DPA and potentially other programs. The exact combination depends on your income and the property, which a participating lender can help you coordinate. Do I have to use a specific lender? Yes. You must get your first mortgage pre-approval from one of the program's approved participating lenders. I'm one of them, so I can keep you eligible while getting you pre-approved. The Bottom Line Boston is an expensive place to buy your first home — but this grant exists specifically to close that gap for working buyers, and it's genuinely underused simply because people don't know about it. Up to $50,000 toward your purchase, as a grant, for a one- to three-family or condo in the city, is the kind of help that turns "someday" into "this year" for a lot of first-time buyers. The eligibility rules have a few moving parts, and the order you do things in matters. As an approved participating lender, I can tell you quickly whether this is realistic for you and help you line it up with any other assistance you qualify for. If you're thinking about buying your first home in Boston, this is absolutely worth a conversation before you rule anything out. For more on buying in and around the city, see our guides to the most affordable cities in Massachusetts, what $500K actually buys in Massachusetts, and how to choose between an FHA and conventional loan. Buying your first home in Boston? Let's find out if you qualify for up to $50,000 through the City of Boston grant — and whether you can stack it with other assistance. I'm a participating lender, and it's a free, no-pressure conversation. Book a free call → | Get a free rate quote → Nate Moghadam is a mortgage loan officer at Fairway Independent Mortgage Corporation and an approved participating lender for the City of Boston First-Time Homebuyer Program. Licensed in Massachusetts and 13 other states. NMLS #906770 | Company NMLS #2289. This content is for informational purposes only and does not constitute a commitment to lend. Program terms, grant amounts, income and asset limits, and eligibility requirements are set by the City of Boston, are subject to change, and are determined by the program administrator — not by Fairway. Figures cited reflect program information available at the time of writing; confirm current details with the Boston Home Center. All loans subject to credit and property approval. Equal Housing Opportunity. Legal Disclosures.
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