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First-Time Homebuyer Programs in Cambridge, MA

Population 122,588 · Updated November 2026

Estimated Median Home Price

$600,000

High Cost

Based on Massachusetts market data and city size. Actual prices vary by neighborhood.

Affordability Snapshot

Est. Monthly Payment
$4,475/mo

P&I $3,660 + Tax $615 + Ins $200

Property Tax Rate
1.23%

$7,380/yr in Massachusetts

FHA Loan Limit
$1150K

High-cost area in Massachusetts

Down Payment Breakdown

For a $600,000 home in Cambridge:

FHA Loan (3.5% down)

Min. 580 credit score

$21,000

Conventional (5% down)

Min. 620 credit score

$30,000

VA / USDA (0% down)

Veterans / eligible rural areas

$0

Plus closing costs of $12,000 - $30,000 (2-5%)

Massachusetts Homebuyer Programs

MassHousing DPA

Down Payment Assistance
Up to $50,000

MassHousing provides up to $50,000 in down payment assistance in high-cost areas as a deferred second mortgage at 0% interest.

ONE Mortgage

Below-Market Rate Mortgage
Fixed rate, no PMI

MassHousing partners with lenders to offer fixed-rate mortgages with no private mortgage insurance requirement.

Federal Loan Programs

ProgramDown PaymentCredit ScoreEligibility
FHA3.5%580+ (3.5%) or 500+ (10%)All buyers
Conventional3-5%620+All buyers
VA0%No minimum (most lenders want 620+)Veterans, active military, surviving spouses
USDA0%640+ (most lenders)Eligible rural/suburban areas, income limits

FHA loan limit in Massachusetts: $1,149,825. Rates and requirements as of 2026.

7 Steps to Buying Your First Home in Cambridge

1

Check your credit score

FHA requires 580+ for 3.5% down; conventional needs 620+. Free annual reports at AnnualCreditReport.com. Cambridge has 3 HUD-approved counseling agencies that offer free credit counseling.

2

Get pre-approved (not just pre-qualified)

Pre-approval involves a full credit check, income verification, and asset documentation. It tells sellers you are a serious buyer with confirmed financing. Pre-qualification is just an informal estimate.

3

Apply for Massachusetts assistance programs

Massachusetts offers 2 homebuyer programs that can reduce your down payment or closing costs. Apply before you start house-hunting — some programs take 2-4 weeks to process.

4

Find a buyer's agent

A buyer's agent represents your interests and is typically paid by the seller. Look for agents who know the Cambridge market and have experience with first-time buyers and DPA programs.

5

House hunt with your budget

With a median price of $600,000 in Cambridge, your total monthly housing cost would be approximately $4,475/month. Most lenders recommend keeping housing costs below 28% of gross income.

6

Make an offer and get an inspection

Your agent helps structure the offer. Always get a home inspection ($300-$500) — it can reveal costly problems. In competitive markets, resist pressure to waive the inspection contingency.

7

Close on your home

Closing typically takes 30-45 days after an accepted offer. Budget $12,000-$30,000 for closing costs. Review all documents carefully at closing — you have 3 days to review the Closing Disclosure before signing.

HUD-Approved Housing Counselors in Cambridge

Approximately 3 agencies offer free homebuyer education and credit counseling

First-Time Homebuyer Facts

Median Buyer Age

36 years

National Association of Realtors, 2025

Avg. Down Payment

8%

National Association of Realtors, 2025

Use DPA Programs

40% of first-time buyers

National Association of Realtors, 2024

Closing Costs

2-5% of purchase price

Consumer Financial Protection Bureau

Frequently Asked Questions About Buying in Cambridge

What first-time homebuyer programs are available in Cambridge, MA?
Massachusetts offers 2 state-level homebuyer assistance programs: MassHousing DPA, ONE Mortgage. In addition, federal programs including FHA (3.5% down), VA (0% down for veterans), and USDA (0% down in eligible rural areas) are available to Cambridge buyers.
How much do I need for a down payment on a home in Cambridge?
Based on the estimated median home price of $600,000 in Cambridge: an FHA loan requires $21,000 (3.5%), a conventional loan requires $30,000 (5%), and VA/USDA loans require $0 down. About 40% of first-time buyers use down payment assistance programs to reduce these amounts.
What is the estimated monthly mortgage payment in Cambridge?
For the estimated median home price of $600,000 in Cambridge with an FHA loan (3.5% down, 6.5% interest rate, 30-year term), the estimated principal and interest payment is approximately $3,660/month. Add property taxes (1.23% in Massachusetts), homeowner's insurance, and mortgage insurance for the full monthly cost.
What credit score do I need to buy a home in Cambridge?
FHA loans require a minimum 580 credit score for the 3.5% down payment option (or 500 with 10% down). Conventional loans typically require 620 or higher. Higher scores qualify for better interest rates. Free credit counseling is available through the 3 HUD-approved housing counseling agencies in the Cambridge area.
What are closing costs for buying a home in Cambridge, MA?
Closing costs in Cambridge typically range from $12,000 to $30,000 (2-5% of the purchase price). These include lender fees, title insurance, appraisal, recording fees, and prepaid property taxes. Some Massachusetts DPA programs also cover closing costs.

Homebuyer Programs in Other Massachusetts Cities

Boston$770,000
High Cost
Worcester$490,000
High Cost
Springfield$590,000
High Cost
Lowell$525,000
High Cost
Brockton$520,000
High Cost
Lynn$495,000
High Cost
Quincy$585,000
High Cost
New Bedford$485,000
High Cost
Back to Cambridge overviewAll homebuyer programsCambridge safety data

Home prices are population-based estimates and may not reflect current market conditions. Program details, eligibility requirements, and amounts are approximate and subject to change. Contact your state housing finance agency or a HUD-approved counselor for current information. This page is for informational purposes only and does not constitute financial advice.

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