How to apply for first-time homebuyer assistance

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While Massachusetts struggles to build more than 200,000 needed homes in the next decade, young people hoping to buy their first home face a competitive market and an uncertain economy.

Programs in New Bedford are there to help. 

In October, the median sale price of a home in New Bedford was $495,000, according to Redfin, and houses in the area tend to sell in about 34 days. 

So for a first-time buyer, the process of becoming a homeowner can seem daunting. Owning a home is an investment in the homeowner’s future — it means they have an asset. And paying a mortgage builds credit, while paying rent usually does not.

As crucial as these things are, the median age of first-time home ownership is rising, hitting 40 years old in 2025, according to data from the National Association of Realtors. This is the highest age on record. 

For most younger generations, owning a home is a considerable long-term life goal, but many worry about it being unattainable, according to the Bank of Montreal’s Real Financial Progress Index. Family money is also a factor, as 60% of Gen Z and 57% of Millennials say they could not have purchased a home without financial support from their families.

How the city can help

For New Bedford residents without these kinds of resources, the city has a program for first-time homebuyers. Through its Office of Housing and Community Development, the city has allocated federal funding to assist with down payment, closing costs and interest rate buydown to eligible residents purchasing their first home.

The city receives funding through the federal Department of Housing and Urban Development’s HOME funding, which gives up to $10,000 to homebuyers earning up to 80% of the area median income to cover down payment and closing cost assistance. 

My Mass Home, a statewide partnership, helps new homeowners with education and counseling, down payment assistance and affordable mortgages. Homebuyers can combine this program with the city’s program, as long as they meet all requirements.

Buyers cannot receive cash back at closing, said Joshua Amaral, head of the Office of Housing and Community Development, because the city’s goal is “to provide the level of support needed to create a first-time homebuyer opportunity that is affordable for the buyer while preserving resources to help as many as possible.”

The city enhanced its program with American Rescue Plan Act (ARPA) funding in 2024 to help combat affordability challenges, particularly for low-and moderate-income households impacted by COVID. With the ARPA program, buyers earning up to 120% of the area median income were eligible for up to $25,000.

Amaral said the program’s budget varies every fiscal year, but this past year was $100,000 plus additional ARPA funds, which are now running out and will not renew in the coming fiscal year. 

Still, Amaral said the city plans to continue to prioritize funding homeownership programs, as long as it continues to receive federal funding. 

There’s enough ARPA funding left for about one more award but Amaral wrote in an email to The Light that he imagines that will be gone fairly quickly, so the enhanced program is “just about completed.”

But the standard program remains available to eligible applicants. Here’s what to know. 

Who counts as a first-time homebuyer?

First-time homebuyers are any individual or couple who have not owned a home for three years. 

While some may be surprised to hear that former homeowners are eligible for the program, provided they have not owned a home in the past three years, Amaral said this is consistent with industry-wide definition.

“Prospective homebuyers should not be dissuaded from accessing these programs because they owned a home once before,” Amaral wrote in an email to The Light. 

The following people may also be eligible for the program:

• Displaced homemakers 
• Single parents who owned a home with a spouse, or lived in their partner’s home
• Anyone who owned a home as a principal residence during the three years before applying for funds whose structure is not affixed to a permanent foundation or not in compliance with state, local or model building codes.

Still, not everyone in these categories is eligible for assistance. Applicants must agree to occupy the property they are buying as a primary residence for at least five years, and must be able to secure a first mortgage in accordance with the established criteria. Other criteria for the buyer’s first mortgage can be found here. 

Applicants’ household and projected income for a 12-month period must be within 80% of New Bedford’s median income by family size. 

For a family of two, this is a $76,550 maximum and for a family of four, this is a $95,650 maximum. Amaral said that many buyers below this threshold may not qualify for a mortgage even with down payment assistance, but the city encourages people to explore their options and not be discouraged.

The total amount for the grant goes up to $10,000 in down payment and closing cost assistance, which can be used for 1-3 family units in New Bedford. The program can also provide additional funds for gap financing or home repairs, if needed. Gap financing goes up to a maximum of $30,000 and covers the difference between the applicant’s approved mortgage amount and the home purchase price, based on need and qualifications. 

Last year, the program assisted 16 first-time homebuyers — more than usual, thanks to the ARPA resources — and all qualified applicants are eligible for assistance as long as funding is available, Amaral said.

How to apply

To apply for assistance, first-time buyers must have a signed purchase and sales agreement, and the process typically takes a minimum of 45 to 60 days from the date of submission. 

The property must meet the city’s safety requirements, be livable for the buyer and pass an inspection. 

For more information, the city offers first-time homebuyer education classes, and enrollment for the Jan. 27 seminar is now open. 

Additional resources

The state has more resources for first-time buyers, including the Massachusetts Housing Partnership, a nonprofit funded in part by Massachusetts banks, which works with the governor, legislature and civic leaders to increase housing production, expand housing access and promote housing equity. One of its programs, ONE Mortgage, offers fixed-rate mortgages to low- and moderate-income families. 

The Citizens’ Housing and Planning Association, a nonprofit whose mission is to encourage the production and preservation of affordable housing, offers education and resources to low- and moderate-income homebuyers. 

Abigail Pritchard is a frequent contributor to The New Bedford Light. She can be reached at apritchard@newbedfordlight.org.