Ready to buy a home in the Bay State?
With four very distinct seasons Massachusetts, offers a a desirable lifestyle with financial benefits and stability in employment. Your dream home could be a charming house in Boston or a chic apartment in Springfield.
Whether you’re a first-time homebuyer or new to Massachusetts housing market, this guide will teach you everything you need to know. We’ve broken down the entire home-buying process into 13 actionable steps.
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Key Takeaways:
- Get Pre-Approved ASAP: In a seller’s market like Massachusetts, a pre-approval letter helps you stand out and beat competition.
- Save Thousands with Assistance Programs: Programs like “MassHousing Mortgages” provide assistance for your down payment, often as a 3% interest loan. Ensure you research downpayment assistance programs thoroughly.
- Don’t Skip Massachusetts-Specific Inspections: An environmental inspection like the Lead and Radon are important for homeowner’s insurance. A wind mitigation report can save you up to 45% on your premium.
- Ask for Credits, Not Repairs: If the inspection has issues, ask the seller for credit at closing. This allows you to hire your own contractors and prevent closing delays.
- Protect Your Investment and Your Wallet: Prioritize Radon, Septic and Lead inspection. Remember to get flood insurance, as standard policies don’t cover it. Don’t forget to file for the Homestead Exemption to save up to $125,000 on your home’s taxable value.
How to Buy a Home for the First Time in Massachusetts: 13 Steps!
This step-by-step guide walks first-time home buyers in Massachusetts through everything, from assessing finances and budgeting for a down payment to choosing the right mortgage. These 13 steps make the Massachusetts real estate process clear, simple, and manageable.
Step 1: Assess Your Finances
As a first-time home buyer in Massachusetts, the two factors that should matter the most to you are your credit score and Debt-to-Income (DTI) ratio. Additionally, you must also consider how much you can afford for a down payment, a monthly mortgage, taxes, and insurance.
What Is Your Credit Score?
A credit score is a three-digit number that indicates your creditworthiness to lenders. The minimum credit score to buy a house in Massachussets depends on the type of mortgage you get.
Minimum and Ideal Credit Scores by Loan Type
| Loan Type | Minimum Score | Ideal Score |
|---|---|---|
| FHA | 500 (10% down) | 580+ (3.5% down) |
| Conventional | 620 | 740+ for best rates |
| VA | No minimum | 620 |
| USDA | No minimum | 640 |
Portfolio mortgage loans are easy to qualify for. Here, the credit score needed to buy a house starts at around 580. VA loans are available only to veterans and active-duty service members, and require a score of 620. FHA loans also accept scores as low as 580. They are good for buyers with lower credit scores looking for houses in Massachusetts.
When purchasing property in Massachusetts, you can check your credit score using several reliable methods. Most of them are free and will not harm your score:
- Annual Credit Reports: Federal law entitles you to one free credit report every 12 months from each of the three major credit bureaus: Equifax, Experian, and TransUnion. These can be accessed through the official, government-authorized website, AnnualCreditReport.com.
- Credit Monitoring Services: Many banks, credit card issuers, and financial service apps provide complimentary and regular access to the FICO score. This is a convenient way to track your credit health over time.
Knowing how to repair your credit score is important to get better mortgage rates. If you’re a first time home buyer in Massachusetts here’s what you need to do:
- Pay down credit card balances and make all payments on time.
- Avoid opening multiple new accounts quickly.
- Consider becoming an authorized user on a family member’s account with a good history.
- Monitor your score regularly to track progress.
How to Calculate Your Monthly Mortgage Payment in Massachusetts?
As a first time home buyer in Massachusetts, knowing your average mortgage payment helps you plan your budget. Your total payment includes 4 key components, often called PITI:
- Principal and Interest: This is a major chunk of your payment, covering the amount you borrowed (principal) and the cost of borrowing (interest). It’s determined by your loan amount, interest rate, and loan term.
- Taxes: Masachussets property taxes are based on your home’s assessed value. The lender holds these funds in an escrow account and pays the tax on your behalf.
- Insurance: Lenders require you to have homeowners’ insurance to protect the property. The annual premium is usually divided by 12 and added to your monthly payment, also managed through the escrow account.
Apart from PITI, your monthly payment may also include Private Mortgage Insurance if your down payment is less than 20%, and HOA fees.
What Is a Debt-to-Income (DTI) Ratio?
Your debt-to-income ratio shows how much of your monthly income goes toward debt payments, including mortgage, car loans, credit cards, and student loans. To calculate it, add all monthly debts and divide the total by your gross pre-tax monthly income.
A high DTI can prevent you from qualifying for a mortgage, as it shows that you struggle to manage your debt. For the best mortgage rates and a higher likelihood of mortgage approval in Massachusetts, aim for a DTI ratio of 36% or lower.
💡 You can still qualify for a loan in Massachussetts despite a high DTI if you have compensating factors like a strong credit history, significant cash reserves or savings, stable long-term employment, etc.
Recommended DTI Ratios by Loan Type
| Loan Type | Recommended DTI Ratio | With Compensating Factors |
|---|---|---|
| Conventional | 36% back-end | 45-50% |
| FHA | 43% back-end | Up to 50% |
| VA | 41% | Can exceed 50% with the residual income test |
| USDA | 41% back-end | 44% with strong credit |
To improve your DTI ratio for a mortgage, you can either reduce your monthly debts or increase your verifiable income.
- Pay Down Debt: Use a tax refund or bonus to clear smaller loans, or consolidate multiple debts into a single loan with a lower monthly payment.
- Increase Verifiable Income: Ask for a raise, take on part-time work, or start a side business. Include all consistent income sources on your application, such as bonuses or commissions, but remember that lenders require a two-year history for secondary income.
- Adjust Your Housing Budget: A larger down payment reduces your loan amount and your monthly mortgage payment. You can also consider a lower home purchase price to keep your future housing costs down.
Step 2: Budget for Your Down Payment and Closing Costs
You should set aside money for the down payment and closing costs. Massachusetts’s first time home buyer programs help make homeownership accessible and affordable.
How Much Down Payment Does a Massachusetts First Time Home Buyer Need?
Typically, the down payment on a house for a first time home buyer in Massachusetts usually ranges from 3% to 20% of the property’s price. However, it can vary based on the loan type. FHA loans require just 3.5% down, while some conventional loans allow a 3% down payment.
To help with these upfront costs, there are many state and local down payment assistance programs in Massachussetts. They provide grants or loans to cover these expenses.
👉 First-Time Home Buyer Programs in Massachusetts: Find out which is the #1 downpayment assistance program in the Bay State.
How to Estimate Closing Costs in Massachusetts?
Closing costs are fees and expenses paid at closing beyond your down payment. Typically, buyer closing costs in Massachusetts usually range from 2% to 5% of the home’s price. So, for a $645,115 home, buyers might pay $12,902 to $32,256.
These fees cover lender charges, appraisals, inspections, title insurance, taxes, agent commissions, and recording fees when buying a property in Massachusetts.
Step 3: Get Pre-Approved for a Mortgage
Secure your financing early by getting pre-approved for a mortgage as a first time homebuyer in Massachusetts. This step helps you understand your budget and strengthens your offer when buying a house.
How to Get Pre-approved as a First Time Home Buyer in Massachusetts?
You need to follow these steps to get pre-approved when buying a house in Massachusetts:
- Gather Financial Documents: Provide proof of income (recent pay stubs and W-2s), tax returns (last two years), asset statements, debt information, and a government-issued ID.
- Choose a Lender and Apply: Compare lenders in Massachusetts and submit a mortgage application to get the best rates and terms.
- Receive Pre-Approval Letter: The lender verifies your info and issues a letter stating your approved loan amount, usually valid for 30–90 days.
A mortgage pre-approval turns you from a casual house hunter to a serious buyer in Massachusetts as it:
- Strengthens Your Offer: 86% of the sellers prefer buyers with a pre-approved mortgage. For the strongest position, ask for a fully underwritten pre-approval, where the lender has already verified all your documents.
- Defines Your Budget: It clarifies exactly how much you can afford, allowing you to focus your home search on a realistic price range.
- Speeds Up Closing: With much of the financial vetting already completed, the mortgage process is streamlined once your offer on a home is accepted.
Yes, you can get pre-approved and even buy a home with bad credit in Massachusetts. However, your loan options may be limited. You can also expect higher interest rates with poor credit.
Step 4: Choose the Right Mortgage
As a first time homebuyer in Massachusetts, assess your finances and select a loan that fits your budget and qualifies you for available programs.
| Feature | Conventional | FHA | VA | USDA |
|---|---|---|---|---|
| Min Credit Score | 620 | 580 (500 w/10% down) | No minimum | 640 |
| Min Down Payment | 5% to 20% | 3.5% | 0% | 0% |
| Max DTI | 45% to 50% | 43% to 50% | 41%+ | 41% to 44% |
| Mortgage Insurance | PMI if <20% | Always | None | Always |
| Loan Limits | $766,550+ | $498,257 to $766,550 | $766,550+ | Varies |
| Property Eligibility Criteria | Few | Must meet FHA standards | Must meet VA standards | Rural/suburban areas only |
Step 5: Decide Where to Buy a Home in Massachusetts
Deciding where to buy is one of the most important steps for a first time homebuyer in Massachusetts. Consider factors like local housing markets, popular neighborhoods, cost of living, and amenities to help you find the best places to live in Massuchusetts.
Why Now Is the Time to Buy in Massachusetts
The Massachusetts housing market is a seller leaning market. You now have more negotiating power and a wider selection of properties to choose from:
- Housing Supply is High: Massachusetts has a 6-month housing supply, which is the benchmark for a buyer’s market.
- Prices Have Stabilized: The median home price has remained relatively constant at $645,115. This allows you to set your budget with more certainty.
- Sellers are Negotiating: 20% of homes in Massachusetts have seen price drops, signaling increased seller flexibility.
- Homes are on the Market Longer: Properties are taking an average of 60-65 days to sell, which allows you to make more informed decisions.
These trends show that now is the best time to buy a house in Massachusetts. According to Mauricio Umansky, founder of The Agency, the current market provides “great opportunities for buyers to be aggressive and write strong offers.”
Popular Areas for Different Buyer Types
With the market now in your favor, you can be more selective about where you buy. Use this advantage to find a neighborhood that matches your priorities, whether it’s schools, commute, or lifestyle.
- Best Areas for Families: Neighborhoods like Newton Centre, Auburndale, and Nonatum are top choices for their excellent schools and family-friendly parks. If you envision life in a community designed for family connection, explore homes for sale in Newton, MA. Properties with access to top-tier schools and parks typically range from $400,000.
- Best Areas for Retirees: Neighborhoods like Downtown Amherst Village, South Amherst Farms, and Smherst Commons are top choices for their quieter and scenic south side. If you are looking for peaceful home spaces, explore homes for sale in Amherst, MA. Properties with access to top-tier medical centres and walking trails typically range from $578,000 – $603,000.
- Best Areas for Young Adults: Cities like Worcester and Boston offer thriving job markets and vibrant social scenes. If a cosmopolitan lifestyle is what you seek, browse the latest Boston houses for sale, where you can find modern condos and apartments starting at just $850,000.
Consider the Cost of Living When Choosing a Location
When looking for the best place to buy a house in Massachusetts, consider the overall cost of living, as lower home prices can be offset by higher taxes or insurance.
- High-Cost Areas: Boston and Cambridge are 118–124% above the national average.
- Moderate-Cost Areas: Chicopee and Pittsfield are near or just below the national average.
- Low-Cost Areas: Fall River, Springfield, and North Adams are 5–10% below the national average.
Step 6: Start House Hunting in Massachusetts
Once you’re pre-approved and know where you want to live, the next step is finding the right house. As a first-time home buyer in Massachusetts, you have two options:
- Work with a Realtor.
- Search for homes online.
An experienced agent can give you valuable local insights and expert guidance on neighborhood trends. However, you’ll have to negotiate the buyer agent commission with the seller, which may raise the home sale price.
If you prefer to take the lead, a high-tech platform like Houzeo is what you need. Whether you’re looking for beachfront mansions, high‑rise penthouses, spacious big homes, or luxury homes in Massachusetts, Houzeo has you covered. You can browse through thousands of listings, set alerts, and save your search. You can even schedule showings and submit offers, all by yourself.
Don’t Just Browse. Buy.
Your entire home purchase, managed in one place.
Download the Houzeo Mobile AppStep 7: Schedule and Attend Home Showings
After you narrow down your list of potential homes, schedule and attend showings to see each property in person. For a first-time home buyer in Massachusetts, visiting homes firsthand helps you evaluate condition, layout, and neighborhood, ensuring you make an informed choice.
During the showing, ask specific questions like:
- How long has the home been on the market?
- Why is the owner selling?
- What is the age of the roof, HVAC system, and water heater?
- Are there any HOA fees or pending special assessments?
- Is the property located in a flood zone?
When buying a house in Massachusetts for the first-time, check the property carefully during the open house. Look for roof sagging, foundation cracks, water stains, uneven floors, or sticking doors, which may indicate serious issues.
As a first time home buyer in Massachusetts there are three main aspects you need to focus on when shortlisting homes:
- Insurance Risks: Verify the home’s flood zone using FEMA’s maps. Get a septic, radon and pest inspection alongside a wind mitigation report to assess insurability and identify features, like an old roof or the lack of impact windows, that could drive up insurance costs.
- Commute and Lifestyle: Test your commute during rush hour. Visit the neighborhood at different times to check for noise from traffic, airports, or nightlife. Ensure convenient access to key amenities like schools, groceries, and parks.
- Massachusetts Home Loans/Assistance Program Eligibility: If you’re applying for a loan or first time buyer program in Massachusetts, ensure that the house complies with its property requirements, or you may risk losing the assistance.
Step 8: Make an Offer
When crafting an offer, make a competitive bid but stay within your budget. As a first-time home buyer in Massachusetts, consider factors like the home’s market value, recent comparable sales, and any repairs needed. This increases your chances of getting a fair deal.
Step 1: Analyze Recent Sales
Your agent will pull up real estate comps that are similar to the one you want. Focus on the final sale price, not the list price. Home prices in many Massachusetts metro areas have seen modest declines, so your offer should reflect this trend.
Step 2: Adjust for the Home’s Condition
Factor in the age and condition of the roof and HVAC. If a comparable home sold for $695,000 but had a new roof, and your target home needs a $15,00-30,000 replacement, adjust your offer to account for that expense.
Step 3: Factor in Today’s Market
Because there are more homes for sale, buyers have more power. Home builders are even cutting prices by about 5% to 8% to attract buyers. For a fairly priced home, you can try offering 2% to 4% less. If the home is overpriced, you can go lower and point to recent sales and current market trends to back up your offer.
What is an Earnest Money Deposit in Massachusetts?
An earnest money deposit is a “good-faith” payment that shows you are a serious buyer. This money is held in escrow and applied towards your down payment at closing.
In Massachusetts, the standard deposit is 1% to 3% of the purchase price. On a $695,000 home, this would be between $6,950 and $20,850. In highly competitive markets like Boston and Worchester, sellers may expect a deposit closer to 10%. make this easy flesch read
Once your offer is accepted, you typically have 3 business days to submit the deposit to an escrow agent, such as a title company or real estate attorney.
Yes, you can get your earnest money deposit back in Massachusetts, but only if you back out of the sale for the following reasons:
- The inspection reveals major issues, and you exercise the inspection contingency.
- The appraisal comes in low, and you exercise the appraisal contingency.
- You’re unable to secure the required financing, and exit during the financing contingency period
- Title issues are discovered.
Many Massachusetts first time home buyers forfeit their earnest money because:
- They back out after the contingency periods expire without a valid reason.
- They violate contract terms.
- The seller meets all contract obligations, but the buyer still refuses to close.
Step 9: Conduct Home Inspections
First-time home buyers in Massachusetts should schedule home inspections to uncover any issues before buying a house. You typically get the inspection report within 24 to 48 hours.
Which Massachusetts Home Inspections Should You Schedule?
A standard home inspection in Massachusetts isn’t enough. The state’s unique climate and weather risks require a few specialized inspections:
- General Home Inspection ($400–$600): Covers structure, roof, HVAC, plumbing, electrical, and interior which is essential for older MA homes facing winter wear.
- Radon Testing ($150–$300): Radon testing is not required by law but strongly recommended by the EPA and MA Department of Public Health (MDPH) for all homes, as 1 in 15 homes exceeds the EPA action level of 4 pCi/L i.e. above the national average.
- Septic Inspection($300–$500): Governed by Title 5 of the State Environmental Code says these inspections are mandatory for homes not on public sewer systems before property transfers; they assess system capacity, condition, and compliance to prevent failures costing $20K–$50K to replace.
- Lead Paint Inspection ($300–$500): The Massachusetts Lead Paint Inspection ensures homes built before 1978 are free from hazardous lead paint, particularly in areas where children under six reside.
Consider Other Specialized Inspections
Based on the property, a Massachusetts first-time home buyer may want to conduct additional tests. For older homes, a sewer scope can detect cracks or tree roots in the main sewer line, saving you from a $15,000- $30,000 repair down the road. If you see large cracks or uneven floors, a $3,000 foundation inspection is worth the investment.
For rural properties, a septic inspection is essential. If the home has a pool, a separate pool inspection will check the pump, filter, and structure for costly defects.
It’s not recommended. Even if you plan to buy cheap homes in Massachusetts skipping a home inspection can lead to unexpected repair costs.
Step 10: Complete the Home Appraisal
After the inspection, your lender will typically order a home appraisal, which professionally values the property to ensure it matches your offer.
Why Do Lenders Need Appraisals?
A home appraisal in Massachusetts confirms the property’s market value. Appraisers typically focus on the following parameters:
- Flood Zone and Elevation: Zone AE/VE properties (common in eastern MA) require flood insurance and lose 5–15% value vs. inland X-zone comps; verify via FEMA maps during showings.
- Insurance and Mitigation Features: Roof age ideally 20 years older, elevated HVAC, and sump pumps boost insurability amid Nor’eastern flood risks and older roofs/HVAC flag 10–20% premium hikes.
- Condo/HOA Health: Appraisers review MA condo docs for reserve funds (10–20% of budget ideal), litigation, and special assessments like lead abatement; weak reserves cut unit value 5–10%.
A standard appraisal in Massachusetts costs between $375 to $450 and typically takes 7 to 14 days to complete. For luxury or waterfront properties, the cost and timeline can be higher.
If the appraisal comes in lower than your offer price, you have an appraisal gap. In such a situation, you can either:
- Renegotiate the Price: Ask the seller to lower the price to the appraised value. In the current market, many sellers are willing to negotiate.
- Cover the Gap: If the seller won’t budge, you can choose to pay the difference in cash.
- Dispute the Appraisal: If you believe the appraiser made a factual error or used poor comparable sales, you can file for a Reconsideration of Value.
- Walk Away: If you cannot reach an agreement, your appraisal contingency allows you to cancel the contract and get your earnest money back.
Step 11: Negotiate Repairs and Credits
As a first time home buyer in Massachusetts, use your home inspection results to negotiate repairs and request credits from the seller. This step can help reduce unexpected costs and ensure your new house is move-in ready.
How to Use Your Inspection Report to Negotiate Repairs?
Your negotiation strategy should center on issues that impact the home’s safety, structural integrity, and insurability. Minor cosmetic flaws are not worth fighting over and can make you seem unreasonable. It’s easy to make this mistake as a first home buyer in Massachusetts.
Focus your request on these critical areas:
- Safety Hazards: This includes outdated and dangerous electrical panels, faulty wiring, or missing safety features like GFCI outlets near water.
- Structural Problems: Any issues with the foundation, load-bearing walls, or the roof structure.
- System Failures: A failing HVAC system, major plumbing leaks, or an old roof.
Get 2 to 3 written estimates from licensed contractors for any major repairs. A repair request that includes professional quotes shows you are serious and have done your homework.
Should You Ask for Repair Credit?
While you can ask the seller to perform the repairs themselves, it’s better to ask for credit instead. Credit gives you the funds to hire your own contractors and ensures the work is done to your standards, not just the cheapest way possible. It also allows the sale to proceed on schedule, without any delays.
How to Negotiate Seller Concessions
Seller concessions are a powerful tool for reducing your out-of-pocket closing costs when buying real estate in Massachusetts. Here, the seller pays for some of your expenses, such as the appraisal, title insurance, or property taxes.
Your ability to negotiate concessions depends on your loan type. Each loan program sets a maximum limit on how much a seller can contribute:
| Loan Type | Minimum Down Payment | Maximum Seller Concession |
|---|---|---|
| Conventional | Less than 10% | 3% of the purchase price |
| Conventional | 10% or more | 6% of the purchase price |
| FHA Loan | Any amount | 6% of the purchase price |
| VA Loan | Any amount | 4% of the purchase price |
| USDA Loan | Any amount | 6% of the purchase price |
Step 12: Review Your Closing Costs
After negotiating repairs and credit as a first time home buyer in Massachusetts, review all closing costs carefully. Check title fees, escrow, insurance, and taxes so you can finalize your budget and confidently buy your house.
Understanding Closing Costs in Massachusetts
- Massachusetts-Specific Taxes ($1,368+): Your closing costs will include two specific state taxes. The Documentary Stamp Tax costs $4.56 per $100 of your loan amount. Massachusetts does not have an intangible tax on mortgages.
- Title Fees ($3,000-5,000+): These fees cover the title search, settlement services, and title insurance policies for both you and your lender. In Massachusetts, the party responsible for paying the owner’s title insurance varies by county.
- Third-Party Fees ($1,000 to $1,500): This category includes the appraisal fee, credit report fee, and flood certification fee. It also covers any inspections you ordered, like the general, Lead Paint, and Septic inspections.
- Prepaid and Escrow Costs ($3,000 to $6,000): You will pay for your first year of homeowners’ and flood insurance upfront. You will also fund your escrow account with several months of property tax and insurance payments to cover future bills.
Step 13: Close on Your New Home
Closing day is the moment you officially become the owner of your new Massachusetts home. Its success depends on a careful final walk-through, a smooth funding process, and making sure all legal documents are properly signed and recorded.
Complete Your Final Walk-Through
Within 24 hours of closing, you will do one last walk-through of the property. This is not a formal inspection, but rather your final chance to see if you want this home. Use this checklist:
- Verify Repairs: Bring your inspection report and repair addendum. Confirm that all negotiated repairs have been completed to a professional standard.
- Test Everything: Run the air conditioning and test all appliances. Make sure every system is functioning as it should.
- Check for Included Items: Ensure all items that were supposed to be included in the sale, like appliances, window treatments, and light fixtures, are still in place.
- Look for Signs of Additional Damage: Make sure no new damage has occurred since your last visit. If you see any issues, notify your agent and the title company immediately before you sign any documents.
Sign the Documents
While there are numerous documents to sign, the most important ones are:
- The Closing Disclosure: You will sign the final version of this document, which outlines all your loan terms and costs.
- The Promissory Note: This is your legal promise to repay the loan. The promissory note outlines the loan amount, interest rate, repayment schedule, and maturity date.
- The Mortgage: This document secures the property as collateral for your loan.
Once you have signed everything, you will provide your “cash to close” amount via a cashier’s check or wire transfer. After your lender sends their funds to the title company, the deal is officially funded.
Get Your Keys and Celebrate
Once the deal is funded, the title company will record the new deed with the county, officially transferring ownership to you. After they pay the seller and other parties, you will finally get the keys to your new home.
Congratulations, you are officially a Massachusetts homeowner! 🎉
🚩 What are the Red Flags to Look for When Buying a House in Massachusetts?
A new home is a huge financial investment. To ensure that you don’t sink your money into a dud, look out for these red flags:
1. Foundation Issues
Old homes, especially in Boston’s coastal areas and Springfield’s riverfront, commonly show foundation cracks, sagging or uneven floors, and settling walls. These may indicate serious problems needing costly repairs amounting up to $10,000.
When purchasing look for gaps wider than 1/4 inches, sloped floors or sticky doors and windows. Such issues risk water infiltration, poor insulation, and compromised safety.
2. Neighborhood Sell-Out
During the open house, if you notice too many “For Sale” signs on a single street or in a small community, it should ring alarm bells. It could be due to skyrocketing HOA fees, declining school quality, or a recent increase in crime rates. It could also point to a future nuisance, like a commercial development planned nearby.
Talk to potential neighbors to get their opinion on the area. You can also check community social media pages or online forums like Nextdoor for discussions about local issues.
3. Aging Roofs and HVAC systems
Massachusetts winters with snow and ice accelerate wear on roofs, HVAC, and hot water systems. Roofs older than 20 years may leak and have missing shingles.
Old boilers or furnaces might be inefficient or risky so looking into that before buying a house is very important. Electrical panels should be modern as outdated or DIY wiring pose fire hazards. Replacing these will cost you thousands.
4. Cover-Ups and Cosmetic Masking
Sometimes sellers hide defects with fresh paint, deodorizers, or quick patch jobs. Strong scents can mask mold or pests. High seller turnover or multiple price drops may signal undisclosed neighborhood or property issues. Be cautious about hidden problems not apparent in casual viewings.
5.Pests and Unpermitted Work
Termite tubes, carpenter ants, or evidence of water bugs signal infestation risks, common in damp Massachusetts basements. Unpermitted additions or renovations may conceal wiring/plumbing faults, affect resale, and complicate insurance. Verify permits carefully and inspect hidden areas.
What Should You Do After Closing?
Welcome home! Now it’s time to handle a few must-dos to protect your investment:
- File for Homestead Exemption: Massachusetts offers an automatic homestead exemption of $125,000 for most homeowners, protecting equity from creditors. If the house is your primary residence. Massachusetts property taxes average an effective rate of 1.14% statewide, higher than the national average.
- Set Up Utilities: Arrange for utilities such as electricity, natural gas or oil heating, water, internet and trash services to be set for a smooth move-in. Additionally schedule a pest control for common pests like carpenter ants and termites.
- Get Insurance: Homeowners insurance is required if you’re financing, and flood insurance may be needed in FEMA zones. Wind, snow and ice-coverage is within the homeowners standard MA policies.
- Home Maintenance Plan: Schedule AC tune-ups at least twice a year, clear gutters regularly, and inspect roofs for storm damage or algae buildup. Consider wind mitigation upgrades to reduce insurance costs.
How to Buy a House in Massachusetts Without a Realtor?
Look up neighborhoods and homes on trusted sites like Houzeo. Then book home tours with the seller or their agent. A real estate attorney can help check the contracts and handle the legal paperwork.
Next, get pre-approved for a mortgage, make an offer, schedule inspections, and negotiate repairs. With the necessary due diligence, you can buy a house without a Realtor.
Which First Time Home Buyer Programs in Massachusetts Can You Apply For?
Various programs make homeownership accessible for a first time home buyer in Massachusetts. They assist with down payments through grants or low-interest, deferred-payment loans. Applicants must meet the income and credit score criteria and complete a homebuyer education course to avail of these programs.
| Program Name | Eligibility | Grants / Assistance | Key Benefit |
|---|---|---|---|
| MassHousing Mortgage & DPA | First-time MA buyers; income/price limits. | Up to $25K statewide; up to $30K ≤60% AMI. | Low-down-payment loans plus sizable down payment help. |
| ONE Mortgage Program | First-time, low–moderate income; class + approved lender. | No PMI; low down payment. | Below-market rate with 3% down and no PMI. |
| Boston First-Time Homebuyer Program | Buying in Boston; income limits; class required. | Roughly up to $30K–$50K grants. | Major down payment/closing cost assistance in Boston. |
| Local City/County Programs | First-time buyers in cities like Worcester,Lowell and Springfield. | About $5K–$25K in local aid. | Extra local funds that can stack with state programs. |
| FHA & Lender Grants | Meets FHA or lender requirements. | Up to about $10K in lender/agency grants. | Small down payments with add-on grant help. |
1. MassHousing Mortgage & Down Payment Assistance
- Eligible Buyers: First-time homebuyers in Massachusetts who meet MassHousing income and purchase price limits and will live in the home as their primary residence.
- Credit Score: Typically around 640+ (set by participating lenders).
- Assistance: Up to $25,000–$30,000 in down payment assistance, paired with a 30-year fixed-rate MassHousing first mortgage.
The MassHousing Mortgage with Down Payment Assistance is the main program from MassHousing and offers affordable 30‑year fixed‑rate loans plus a second loan to help with your down payment. To qualify, you must be a first‑time buyer, meet income and price limits, buy a 1–4 family home or condo in Massachusetts, and complete an approved homebuyer education course.
2. ONE Mortgage Program
- Eligible Buyers: First-time, low‑ to moderate‑income buyers in Massachusetts who meet income and purchase price limits and complete a homebuyer class.
- Credit Score: Set by participating lenders, but program is designed to be more flexible for qualified borrowers.
- Assistance: 30-year fixed-rate mortgage with just 3% down (5% for 3‑families), no private mortgage insurance, and state support that lowers monthly payments.
The ONE Mortgage program helps first-time homebuyers reduce upfront costs with a low down payment and by eliminating PMI, which lowers monthly payments. Buyers must purchase a 1–4 family home or condo, live in the home as their primary residence, and complete an approved homebuyer education course.
3. Boston First-Time Homebuyer Program
- Eligible Buyers: First-time homebuyers purchasing a home in the City of Boston who meet income limits and complete a homebuyer education class.
- Credit Score: 640+.
- Assistance: Grants typically range from $30,000 to $50,000 for down payment and/or closing cost assistance.
This Boston First-Time Homebuyer provides significant financial support to make homeownership affordable in Boston by offering large grants for down payment and closing costs. Buyers must live in the home as their primary residence and meet other eligibility requirements set by the city.
4. Local County Programmes
- Eligible Buyers: First-time homebuyers in specific cities like Worcester, Lowell, and Springfield who meet local income and purchase price limits.
- Credit Score: Generally 640+.
- Assistance: Provides down payment and closing cost assistance averaging between $5,000 and $25,000.
These programs are administered locally to provide additional funding tailored to the community’s needs. Buyers must purchase a primary residence and may be required to complete a homebuyer education course.
5. FHA & Lender Grants
- Eligible Buyers: Buyers who meet Federal Housing Administration (FHA) or specific lender requirements, including credit score minimums and income limits.
- Credit Score: FHA typically 580+ for 3.5% down, some lenders require 640+.
- Assistance: Up to about $10,000 in lender or agency grants to help with down payment and closing costs.
These programs supplement traditional FHA or conventional loans with grants that reduce out-of-pocket costs. Buyer must meet underwriting guidelines and often complete homebuyer education to qualify.
» First Time Buyer Programs: Find the perfect program that helps you get the key to your first home.
What Should You Know Before Buying a House in Massachusetts?
Before you buy a home in the Bay State, you must understand the factors that can impact your budget and lifestyle.
What are Some Additional Costs When Buying Houses in Massachusetts?
Besides the purchase price, you also need to budget for costs like property taxes and possible HOA fees. The most important extra cost for a Massachusetts homebuyer to plan for is homeowners insurance.
- Why Homeowners Insurance is Crucial: Massachusetts’ exposure to hurricanes, nor’easters, flooding, and winter storms makes homeowners’ insurance essential. This coverage safeguards your property and investment against damage from these natural disasters specific to the region.
- High Insurance Costs: Due to these risks, the projected annual cost of homeowners’ insurance may go as high as $8000, which is above national average.
- Choosing the Right Policy: When choosing a policy, make sure it covers both strong windstorms and flooding. You may be able to lower your premium by buying a home with safety features like impact‑resistant windows or a newer, well‑secured roof.
Do You Need Separate Flood Insurance in Massachusetts
Yes, you do. Standard homeowners’ insurance does not cover flood damage, so a separate policy is necessary for protection. FEMA maps determine your property’s flood risk:
Flood zone categories and recommendations are the same in Massachusetts as elsewhere, since they are set by FEMA.
| Flood Zone | Risk Level | Insurance Recommendation |
|---|---|---|
| A, AE, V, VE | High-risk | Required for most mortgages. These Massachusetts coastal and inland areas have at least a 1% chance of flooding each year and face higher risk from nor’easters and coastal storms. |
| B, C, X | Low-to-moderate | Highly recommended. Even in these “lower-risk” zones, Massachusetts homes can still flood from heavy rain, melting snow, or coastal storms, and many flood claims come from outside the high-risk areas. |
When is Flood Insurance Required?
Whether you need flood insurance typically depends on your property’s location, your mortgage lender, and your homeowners’ insurance provider. However, there are two main situations where flood insurance is mandatory in Massachusetts:
- Federally-Backed Mortgages in High-Risk Zones: If your home is in a high-risk flood zone and you have a federally-backed mortgage, federal law requires you to have flood insurance.
- Citizens Property Insurance Policies: Massachusetts state law requires most homeowners with policies from Citizens Property Insurance to have flood insurance. Massachusetts doe snot have a dollar-value threshold where the state automatically requires flood insurance for all homes. The requirement is triggered by location.
Why First-Time Homebuyers Should Explore Massachusetts Now?
Massachusetts is a smart choice for first-time buyers, thanks to its strong job market, world-class education and healthcare hubs, and a wide range of local down payment assistance programs.
From Boston’s urban energy to Worcester, Springfield, and gateway cities offering more affordable options, there’s a community for a broad range of budgets and lifestyles.
With thousands of homes for sale and numerous down payment assistance programs, homeownership is more attainable than ever.
» Houzeo Reviews: Read what customers have to say about Houzeo, Massachusetts’ best home buying website
