Berkshire County First-Time Homebuyer Grants: $2,500 Toward Closing Costs

Buying a first home in the Berkshires is a steep climb. Even buyers who qualify for a mortgage often get tripped up at the finish line by closing costs and the final slice of a down payment. A targeted grant program run by the South Berkshire housing nonprofit Construct Inc. was designed to close exactly that gap, first announced in June 2023.

How the Program Works

Known as the Final Mile Grant, the program initially offered $2,500 per eligible household toward closing costs for first-time homebuyers. The money comes from a $100,000 appropriation tucked into the Massachusetts American Rescue Plan Act (ARPA) spending package in the Fiscal 2023 budget by State Representative William "Smitty" Pignatelli, D-Lenox.

Construct administers the funds in partnership with local mortgage lenders. Applicants must first secure mortgage pre-approval through a participating bank, then connect with Construct to verify eligibility and receive the grant at closing. After early rounds showed that $2,500 was often not enough to meaningfully move the needle in a competitive market, Construct adjusted the per-household amount upward to as much as $15,000 to help more families actually get to closing.

Who Is Eligible

To qualify, applicants must:

• Be a first-time homebuyer purchasing in one of the 18 participating South Berkshire towns
• Earn no more than 100% of Area Median Income (AMI), with exact thresholds varying by town and household size
• Already be approved for a mortgage through a participating financial institution

The 18 eligible communities are Alford, Becket, Dalton, Egremont, Great Barrington, Lee, Lenox, Monterey, Mount Washington, New Marlborough, Otis, Richmond, Sandisfield, Sheffield, Stockbridge, Tyringham, Washington, and West Stockbridge.

Participating Lenders

Buyers must work with a mortgage originator at one of Construct's partner institutions:

• Lee Bank
• Greylock Federal Credit Union
• Adams Community Bank
• Pittsfield Cooperative Bank
• Berkshire Bank

Each lender's loan officers are familiar with the grant and can flag eligible buyers to Construct's housing navigator during the underwriting process.

What the Grant Covers

The grant is structured as a "final mile" boost, meant to cover the last-stretch expenses that can derail an otherwise qualified buyer. Eligible uses include:

• Closing costs (lender fees, title insurance, recording fees, attorney fees)
• A portion of the down payment
• Prepaid items such as escrow funding for taxes and insurance

Funds are disbursed through the mortgage closing, not directly to the buyer, which keeps the grant aligned with the actual purchase transaction.

Current Funding Status

Construct has reported that the original $100,000 ARPA allocation has been fully committed, with the program helping approximately 10 families purchase homes before funds were exhausted. That means the Final Mile Grant is not actively accepting new applications at its original funding level.

However, Construct has signaled that it intends to keep pursuing similar first-time homebuyer assistance and continues to work on affordable housing programs across South Berkshire County. Prospective buyers should check directly with Construct for the current status of Final Mile or any successor program before relying on it in a purchase offer.

How to Apply or Get on a Waitlist

1. Get pre-approved for a mortgage at one of the five participating Berkshire lenders.
2. Ask your loan officer whether you appear to meet the 100% AMI threshold for your town.
3. Contact Construct's housing navigator, Kate Coulehan, at kcoulehan@constructberkshire.org to confirm current program availability and next steps.
4. Keep an eye on Construct's website and local coverage in The Berkshire Eagle and iBerkshires for announcements of refreshed or successor funding.

Why It Matters

The Final Mile Grant is a useful case study in how a relatively small state appropriation, run through a trusted local nonprofit, can produce concrete homeownership outcomes. For Berkshire County buyers who meet the income guidelines, it is worth asking every participating lender on day one whether any similar funds are currently available, and layering any closing-cost assistance on top of statewide tools such as MassHousing's mortgage programs and the ONE Mortgage program through the Massachusetts Housing Partnership.