Down payment help: Massachusetts and Cape Cod programs

How assistance usually works

Most "down payment assistance" isn't free money. It usually takes one of these forms:

• A second loan that's deferred (no payments until you sell, refinance, or pay off the first mortgage) or repaid monthly over a set term.
• A loan with better terms, such as a lower down payment requirement or no PMI, that reduces the cash you need.
• A below-market purchase price in exchange for a long-term deed restriction. That's how affordable lottery homes work.
• Occasionally, a grant or forgivable loan from a town, nonprofit, or employer.

Almost every program requires a homebuyer education certificate, and most have income limits (and sometimes asset limits) that change each year. I don't list dollar limits here because they change. The links go straight to the current numbers.

MassHousing down payment assistance

MassHousing offers down payment assistance to income-eligible first-time buyers in every Massachusetts city and town, including all 15 Cape towns. Key points from MassHousing's current page:

• It must be paired with a MassHousing mortgage from an approved lender.
• MassHousing lists assistance of up to $30,000, with repayment options that range from deferred at 0% to 15-year amortizing loans at 2% or 3%. Your lender determines which option and amount you qualify for.
• It can be used for a single-family home, a condo, or a 2–4 family property that you'll live in.
• Homebuyer education is required.

MHP ONE Mortgage

MHP's ONE Mortgage isn't a separate assistance check. It lowers your costs through the loan's design: as little as 3% down on most property types, no PMI, and a fixed rate. MHP says down payment assistance or gift funds can count toward the down payment. Eligibility, per MHP's buyer preparation page:

• You haven't owned a home in the past three years.
• Household income is under the limit for your community and household size. Limits are published annually.
• Household assets are under MHP's cap. Most retirement and college accounts aren't counted.
• You meet the minimum credit score for the property type.
• You'll live in the home, and you complete a homebuyer class. Buyers of 2–3 family homes have an extra landlord course or counseling requirement.

Low-down-payment loans from the national programs

• Fannie Mae HomeReadyAs little as 3% down, income at or below 80% of area median income, cancellable mortgage insurance. You don't have to be a first-time buyer · Fannie Mae
• Freddie Mac Home PossibleAs little as 3% down, income capped at 80% of area median income. Education is required when all borrowers are first-time buyers · Freddie Mac
• FHA loansLow down payment, more flexible credit standards · HUD
• USDA Rural DevelopmentCan allow no down payment for income-eligible buyers in eligible areas. Check each address · USDA
• VA home loansOften no down payment for eligible veterans · our guide

Barnstable County and town-level help

Barnstable County HOME Consortium

The Barnstable County HOME Consortium distributes federal HUD HOME funds on behalf of the Cape's 15 towns. In past years it funded a first-time buyer down payment and closing cost program, administered by Housing Assistance, that offered zero-interest deferred loans (HAC's write-up). However, the County's current HOME page describes the funds as going mainly to developing and preserving affordable rental housing. I could not confirm that a county down payment program is open to buyers as of October 2026. Before you count on it, ask Housing Assistance or the County's HOME program manager (contact info is on the County page).

Town programs

Cape towns support homeownership mainly through their housing offices, affordable housing trusts, and Community Preservation Act funds. Most of that money goes toward creating deed-restricted homes rather than direct cash to buyers. Programs come and go with funding rounds. Places to check:

• Town of Barnstable Affordable Housing Trust Fund BoardTown housing trust meetings and initiatives · Town of Barnstable
• Town of Barnstable Housing CommitteeHousing policy and opportunities in Barnstable's villages · Town of Barnstable
• Brewster Housing Office: affordable housing opportunitiesAn example of a town posting current ownership lotteries · Town of Brewster

Falmouth, Barnstable, and several other towns also have nonprofit housing partners. Falmouth's local housing trust, for example, has developed affordable ownership homes. Each town guide on this site links to that town's housing office.

Deed-restricted homes and lotteries

Across the Cape, some homes are sold below market to income-eligible buyers, usually by lottery. In exchange, the home carries a deed restriction that keeps it affordable for future buyers, often permanently. That restriction caps your resale price. You still build some equity, but you won't see full market appreciation. A 2025 public-radio story described Cape lotteries that typically draw a couple dozen applicants, with homes priced for households at 80% to 120% of area median income.

• Who runs them: Housing Assistance runs many Cape lotteries (contact: lotteries@haconcapecod.org, per Brewster's housing office). Town housing offices and developers run others.
• Typical requirements: first-time buyer status (with some exceptions), income and asset limits, a mortgage pre-approval, and a homebuyer education certificate.
• Getting ready: finish your homebuyer class and get pre-approved now. Application windows can be short.
• Read the deed rider carefully: resale formula, owner-occupancy rules, refinancing limits, and capital improvement credits. Have your attorney review it.

Housing to Protect Cape Cod is an advocacy coalition that pushes for more housing on the Cape. It doesn't run lotteries. You can get involved through Housing Assistance's advocacy page. Lesson 5 covers how deed-restricted homes compare with buying at market price.

Habitat for Humanity of Cape Cod

Habitat for Humanity of Cape Cod builds homes for income-eligible households, who contribute "sweat equity" hours. Habitat takes applications for specific homes during set windows. For example, a 2026 Pocasset (Bourne) home had an 80%-of-AMI income limit and required 250–500 sweat equity hours (notice). Watch Habitat's site for new openings.

Can you stack programs?

Sometimes. MassHousing says its assistance can be combined with certain other programs, such as FHLB Boston's Equity Builder, through participating lenders. A lottery home might be financed with ONE Mortgage or MassHousing. But every program has its own rules about what can be combined with it. Your lender, not the internet, is the authority here. Ask: "Which assistance can I combine with this loan, and what's my total cash to close?"

Lesson checklist

• I've run MassHousing's eligibility quick check.
• I've checked current ONE Mortgage income and asset limits for my town.
• I've asked a lender which assistance programs I can combine.
• I've joined lottery notification lists (Housing Assistance and the town housing offices).
• I've finished a homebuyer education class.