Massachusetts Home Loan Programs for Veterans

The State of Massachusetts offers veteran-friendly home loan programs designed to support veterans and other eligible military borrowers in achieving homeownership. These programs are administered through MassHousing, an independent housing finance agency.

Available statewide through a network of MassHousing-approved lenders, these programs help eligible veterans, active-duty service members, members of the Guard and Reserve, and Gold Star Families access affordable financing when purchasing a primary residence in Massachusetts.

MassHousing Mortgage Loans

MassHousing offers fixed-rate mortgage loans designed to provide straightforward and affordable home financing. These loans are available in every city and town in Massachusetts and may be used by eligible veterans and service members who meet program requirements.

MassHousing Mortgage loans feature competitive, fixed interest rates for the life of the loan with no hidden fees. Both conventional and FHA financing options are available. Income limits and eligibility requirements apply, and borrowers must work with a MassHousing-approved lender.

Because these loans are offered statewide, they may serve as an alternative or complement to other mortgage options available to veterans, depending on individual eligibility and financial circumstances.

$2,500 Closing Credit for Veterans and Service Members

Members of the National Guard or Reserves, active-duty military, veterans, and Gold Star Families may be eligible for a $2,500 closing cost credit when using a MassHousing Mortgage loan.

This credit can be applied toward eligible closing costs, helping reduce the amount of cash needed at the closing table. For military borrowers purchasing a home in Massachusetts, this benefit may provide meaningful savings when paired with a MassHousing Mortgage.

Down Payment Assistance for Eligible Veteran Homebuyers

Saving for a down payment is one of the biggest barriers to homeownership. MassHousing provides eligible first-time homebuyers with down payment assistance of up to $30,000 when purchasing a home anywhere in Massachusetts. This assistance must be paired with a MassHousing Mortgage loan.

Veterans and service members who meet first-time homebuyer and income eligibility requirements may qualify.

To be eligible, borrowers must be income-eligible first-time homebuyers purchasing a single-family home, condominium, or 2-, 3-, or 4-family property that will serve as their primary residence. Additional program requirements apply.

Down payment assistance is provided in the form of a second mortgage loan. The type and amount of assistance are determined by a MassHousing-approved lender.

MassHousing offers three Down Payment Assistance options:

Option 1 – Deferred Second Mortgage (Up to $30,000)

• 0% interest
• No monthly payments
• Repaid when the home is sold, refinanced, or paid off

Option 2 – 15-Year Second Mortgage at 2% (Up to $25,000)

• Fixed 2% interest
• Monthly payments for 15 years
• Repaid if the home is sold or refinanced

Option 3 – 15-Year Second Mortgage at 3% (Up to $25,000)

• Fixed 3% interest
• Monthly payments for 15 years
• Repaid if the home is sold or refinanced

Down Payment Assistance may be combined with other local assistance programs where permitted.

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