ONE Mortgage Program First-Time Homebuyer Assistance Programs

ONE Mortgage Program: The Massachusetts Path to Affordable First-Time Homeownership

The ONE Mortgage Program has quietly become a game-changer for thousands of Massachusetts residents who once believed the words “home owner” belonged to somebody else. In a state where the median single-family sales price hovered near $570,000 in 2023, according to market data summarized by local MLS boards, this low-interest financing option gives first-time buyers with modest earnings a fighting chance. By eliminating private mortgage insurance and shaving points off the interest rate, ONE Mortgage can shrink a monthly payment by hundreds of dollars—money that can go toward groceries, daycare, or simply breathing room in the budget.

What Is the ONE Mortgage Program?

Administered by the Massachusetts Housing Partnership (MHP), ONE Mortgage is a 30-year fixed-rate loan designed for first-time buyers with low to moderate incomes. The “ONE” in the title isn’t just branding; it signals a single, streamlined mortgage free of the pricey add-ons that typically burden entry-level borrowers. No private mortgage insurance (PMI). No interest-rate bumps because you don’t have 20 % down. Just one straightforward loan.

Since its 1990 inception, MHP reports that more than 23,000 households have used the program—a population rivaling the entire city of Agawam. The agency partners with a network of participating lenders, including community banks and credit unions, to deliver underwriting and servicing. Even better, the program layers seamlessly with many local down-payment assistance grants, allowing buyers to stack savings.

Why First-Time Buyers in Massachusetts Should Consider ONE Mortgage

• Lower monthly payment. By stripping away PMI and offering a subsidized rate (often 0.50–1.00 % below conventional), households can save $200–$400 per month on a $400,000 loan.
• Small down payment. Only 3 % down is required and you can supply half of that (1.5 %) from your own funds; gifts and assistance can cover the rest.
• Safety net subsidy. Buyers below 80 % of area median income (AMI) receive a payment subsidy during the first seven years, phasing out as income grows.
• Consumer protections. Unlike some exotic loans, ONE Mortgage uses a 30-year fixed term—no balloon, no reset, no nasty surprises.
• Credit flexibility. Minimum credit score is 640, friendlier than many mainstream products.

In a coastal state where a one-bedroom apartment can rival a mortgage in cost, those perks are more than bullet points—they are lifelines.

How Does the ONE Mortgage Program Work?

1. Homebuyer Education – You’ll begin with a HUD-approved class. Expect eight hours of myth-busting on topics like budgeting, inspections, and closing costs.
2. Pre-Approval – Apply with a participating lender. They’ll verify income, assets, and credit much like any other mortgage.
3. Find Your Home – Condos, single-family homes, and 2-4 unit properties qualify, provided you occupy one unit.
4. Underwriting & Subsidy Calculation – MHP reviews the file, determines eligibility for the seven-year subsidy, and locks in your reduced rate.
5. Closing & Ongoing Support – After the keys change hands, MHP monitors income annually if you received the payment subsidy, ensuring fairness and transparency.

Picture the process as a relay race: your lender runs the first lap, MHP carries the baton through subsidy review, and you sprint across the finish line into your new living room.

Who Qualifies for the ONE Mortgage Program in 2024?

Eligibility hinges on three pillars—first-time status, income limits, and purchase price caps.

First-Time Status

You must not have owned residential property in the past three years. Former homeowners who sold during the pandemic slump? You’re back in the game.

Income Limits

ONE Mortgage sets maximum household income at 80 % of AMI in most cities, and up to 100 % in Gateway Communities like Boston, Quincy, and Cambridge. For example, a four-person family buying in Plymouth County could earn up to roughly $103,000, while the same family in Suffolk County could push to about $137,000. (Figures updated each April by HUD and MHP.)

Purchase Price Caps

Caps vary by county. As of spring 2024, a single-family home in Middlesex County could not exceed about $640,000. Multi-family limits rise with unit count.

Credit & Debt Guidelines

• Minimum FICO: 640
• Maximum back-end DTI: 45 % (a hair more if you nab a subsidy)

Meet those bars and the door creaks open—wide enough to walk through with confidence.

Is the ONE Mortgage Program Better Than FHA for Massachusetts Buyers?

FHA loans are popular for their 3.5 % down payment and lenient credit criteria, yet they come bundled with mandatory mortgage insurance (both upfront and monthly) that never disappears on low-down-payment loans. The ONE Mortgage Program, by contrast, charges zero mortgage insurance. On a $400,000 purchase, that difference can top $250 monthly in year one. Over five years, the cumulative savings often exceed $15,000.

FHA remains useful for borrowers with scores in the 580–639 range, but once you cross the 640 Rubicon, ONE Mortgage frequently wins the cost battle—especially when combined with a city or employer down-payment grant.

Can I Use Down-Payment Assistance With an ONE Mortgage Loan?

Yes. MHP explicitly encourages layering local, state, and even employer assistance programs with ONE Mortgage. Some Boston neighborhoods offer forgivable loans up to $40,000; gateway cities like Lawrence and Springfield run similar grants. The only caveat: at least half of the 3 % down payment must still be your own money. Assistance can cover the rest, plus closing costs.

Savvy buyers often stack funds this way: $6,000 from personal savings, $10,000 from MassHousing’s down-payment program, and $5,000 from a city grant. The result? Closing with less cash than a typical apartment security deposit.

Does the ONE Mortgage Program Require Private Mortgage Insurance?

No. Eliminating PMI is the program’s signature advantage. MHP’s reserve fund, fueled by participating lenders and state resources, serves a similar risk-mitigation role—allowing borrowers to benefit from lower payments without sacrificing lender security.

A Real-Life Glimpse: How ONE Mortgage Helped a Cambridge Teacher

Consider Maya R., an eighth-grade science teacher earning $76,500 a year. Tired of rent hikes in Somerville, she eyed a $525,000 condo near Porter Square. A conventional 5 % down loan quoted her $3,640 per month including PMI. Her lender suggested ONE Mortgage instead. After subsidy, her payment fell to $3,065. That $575 monthly delta—roughly the cost of classroom supplies teachers often buy out-of-pocket—meant Maya could finally budget for both a mortgage and a modest summer vacation. Interviews with Cambridge community groups confirm that stories like Maya’s are increasingly common yet rarely highlighted in mainstream coverage.

PAA-Driven Quick Takes

How long does it take to close with ONE Mortgage?

Plan on 45–60 days from accepted offer to closing. MHP’s subsidy review adds roughly one extra week compared with plain-vanilla loans, but early document gathering keeps the timeline predictable.

Can I refinance out of ONE Mortgage later?

Absolutely. After the first seven years—or whenever interest rates fall—you can refinance into any product. If you received the subsidy, repayment is not required.

Your Next Steps: Turn the Key to Your Massachusetts Home

If rising mortgage rates and sky-high sale prices have kept you circling the block, the ONE Mortgage Program may be the open driveway you need. Start by registering for a first-time buyer class this weekend. Then call a participating lender and ask for a side-by-side cost breakdown—ONE Mortgage versus conventional and FHA. Seeing the dollars in black and white can be the spark that pushes dreamers into doers.

Ready to explore homes that fit your lifestyle and your budget? Reach out to our team of Massachusetts real estate specialists. We’ll connect you with certified ONE Mortgage lenders, hunt for down-payment grants, and negotiate fiercely so you enter your new home with equity from day one.