What this course is (and isn't)
Most first-time buyer advice is written for places with city sewer, gas lines, and no flood maps. The Cape is different. Most homes have septic systems, some are on private wells, a lot of houses were built as summer cottages, and many towns tax and regulate housing in their own ways. This course goes through the buying process in order, with those local details built in.
- Free and self-paced. Read the lessons in order or jump to the one you need.
- Sourced. Facts link to official sources like MassHousing, MHP, MassDEP, HUD, and the CFPB. I don't list rates or income limits that change. The links go straight to the current numbers.
- Practical. Every lesson ends with key takeaways and a short checklist.
- Not a certified class. Many loan and assistance programs require an approved homebuyer education certificate. This course doesn't replace that. See homebuyer education classes below.
The 8 lessons
1. Am I ready?
Readiness, budgeting, and the true monthly cost on the Cape: PITI plus flood insurance, septic, heating fuel, and local fees.
About 7 min → 📈2. Credit and savings
Credit scores, debt-to-income, and saving for the down payment, closing costs, and reserves.
About 6 min → 🏦3. Mortgage basics
Conventional, FHA, VA, USDA, MassHousing, and ONE Mortgage, plus pre-approval, rate locks, points, and PMI.
About 7 min → 🤝4. Down payment help
MassHousing assistance, ONE Mortgage, lotteries, Habitat, and county and town programs.
About 7 min → 🔎5. Finding a home
Buyer agreements, search strategy, condo vs. single-family, year-round vs. seasonal, and deed-restricted homes.
About 6 min → ✍️6. Offers and negotiation
The Massachusetts Offer to Purchase, contingencies, escalation clauses, and competing in multiple offers.
About 6 min → 🔧7. Inspections and due diligence
Home inspection, Title 5, wells, lead paint, radon, flood zones, and open permit checks.
About 7 min → 🔑8. Closing and beyond
The P&S, attorney roles, closing costs, homestead, the residential exemption, and first-year maintenance.
About 7 min →Your path through the course
Follow the lessons in order. Each one builds on the last. Most buyers do Lessons 1–4 months before they start touring, and Lessons 5–8 once they're actively looking.
Am I ready?
Figure out your real "Cape monthly" budget. Before you shop
Credit and savings
Strengthen your file and save for all three cash buckets. Before you shop
Mortgage basics
Choose a loan type and get pre-approved. Before you shop
Down payment help
Line up assistance and get your education certificate. Before you shop
Finding a home
Sign a buyer agreement and search with the Cape issues in mind. While you shop
Offers and negotiation
Write a strong offer and protect your deposit. While you shop
Inspections and due diligence
Check septic, water, flood, lead, and permits. Under contract
Closing and beyond
Close smoothly and set up your first year. Under contract
Massachusetts and Cape Cod first-time buyer programs (2026)
Here's what's available to Cape first-time buyers as of October 2026. Income limits, asset limits, and terms change, often every year, so use the links for current numbers. Lesson 4 goes into more detail.
| Program | Who it's for | What it offers | Official source |
|---|---|---|---|
| MassHousing mortgage and down payment assistance | Income-eligible buyers. The assistance is for first-time buyers. Available in every MA town. | Fixed-rate conventional or FHA loans through approved lenders. Down payment assistance (MassHousing lists up to $30,000) with deferred or 15-year repayment options. MI Plus job-loss protection. Education required. | MassHousing DPA · Loans |
| MHP ONE Mortgage | First-time buyers (no ownership in the past 3 years) under community income limits and a household asset cap | As little as 3% down on most property types, no PMI, fixed rate. Homebuyer class required. | MHP ONE Mortgage |
| Fannie Mae HomeReady | Buyers at or below 80% of area median income. Doesn't have to be a first home. | As little as 3% down, cancellable mortgage insurance. Education may be required. | Fannie Mae |
| Freddie Mac Home Possible | Buyers at or below 80% of area median income | As little as 3% down. Education required if all borrowers are first-time buyers. | Freddie Mac |
| FHA loans | Buyers with smaller down payments or thinner credit. Doesn't have to be a first home. | Low down payment (HUD cites roughly 96.5% financing), flexible credit standards, county loan limits | HUD |
| USDA Rural Development loans | Income-eligible buyers purchasing in a USDA-designated eligible area | Can allow no down payment. Much of Barnstable County is in eligible areas, but not all of it. Check the exact address. | USDA RD |
| VA home loans | Eligible veterans, service members, and some surviving spouses | Often no down payment and no monthly mortgage insurance | Our VA guide |
| Barnstable County HOME Consortium | Low-income households across the 15 Cape towns | Federal HOME funds. Previously funded a first-time buyer down payment and closing cost loan through Housing Assistance. The current focus is affordable rental housing. Confirm availability | Barnstable County |
| Town programs (Barnstable, Falmouth, Brewster, others) | Varies by town | Town housing offices and trusts mainly fund deed-restricted homes and post local lotteries. Direct buyer assistance comes and goes with funding. Ask the town | Barnstable · Brewster · town guides |
| Deed-restricted homeownership lotteries | Income- and asset-eligible buyers, usually first-time | Homes priced below market, with a permanent affordability restriction that caps resale. Housing Assistance runs many Cape lotteries (lotteries@haconcapecod.org). | Housing Assistance |
| Habitat for Humanity of Cape Cod | Income-eligible households with a housing need | Affordable homes built with the buyer's "sweat equity" hours. Applications open for specific homes. | Habitat Cape Cod |
In April 2026 the state temporarily expanded MassHousing assistance to 0% deferred loans for buyers up to 135% of area median income. That window closed early, on July 2, 2026 (Mass.gov). Standard MassHousing assistance continues. Promotions like this appear and expire, so ask your lender what's available when you lock.
Housing to Protect Cape Cod is an advocacy coalition working for more year-round housing on the Cape. It doesn't sell homes or run lotteries. You can join through Housing Assistance's advocacy page.
Homebuyer education classes on the Cape
MassHousing, ONE Mortgage, and most lotteries require a homebuyer education certificate, and so do some conventional low-down-payment loans. Take a class early. It's useful, and the certificate is usually valid for a while. CHAPA lists two Cape agencies that carry the Massachusetts Homeownership Collaborative's Seal of Approval (CHAPA's agency list):
- Housing Assistance: Massachusetts First Time Home Buyer CourseOnline (Zoom), about 8 hours over two sessions. HAC lists a fee and a certificate valid statewide for two years, and says it's accepted for MassHousing. Enrollment opens 60 days before each session · Housing Assistance, Hyannis
- Housing Assistance: education and HUD-approved counselingAlso offers the First Steps to Home Ownership class and one-on-one counseling. HAC describes itself as the only HUD-approved housing counseling agency serving Cape Cod and the Islands · Housing Assistance
- Community Development Partnership: homebuyer educationServes the Lower Cape. Online education plus counseling · CDP, Eastham
- MassHousing: approved homebuyer educationHow to find MassHousing-approved classes statewide. You can take a class in any town · MassHousing
Before you enroll, check that the class meets your specific loan or lottery requirement. Ask your lender or the lottery agent.
FAQ
Does this course count as the required homebuyer education class?
No. Programs like MassHousing and ONE Mortgage require a class from an approved provider. This course is a free companion to that class. See the class list above.
Who counts as a "first-time" buyer?
It depends on the program. MHP's ONE Mortgage, for example, counts anyone who hasn't owned a home in the past three years. HUD has its own definition. Some programs, like HomeReady and FHA, don't require first-time status at all. Ask your lender how each program you're considering defines it.
Can I use USDA financing on Cape Cod?
Possibly. Much of Barnstable County lies within USDA-eligible areas, but eligibility is set address by address and the boundaries can change. Check the specific property on USDA's eligibility map and confirm with a USDA-approved lender.
How much do I really need for a down payment?
It can be 0% (VA, USDA), 3% (HomeReady, Home Possible, ONE Mortgage on most properties), or a low FHA minimum. Assistance can cover some of it. Also plan for closing costs and reserves. Lesson 2 breaks it down.
Are deed-restricted lottery homes a good deal?
They can be the most affordable way to own year-round on the Cape. In exchange, your resale price is capped and use rules apply. Lesson 5 compares them with market-rate homes.
I'm a veteran. Where do I start?
Start with our VA loan guide, then come back for Lessons 5–8, which apply to every buyer.
Have questions about buying your first home?
Call or text Sherman at 508-534-3425 or send a message. There's no pressure and no cost to ask.