Massachusetts ONE Mortgage: How MHP's Flagship First-Time Buyer Program Works

A flagship affordable mortgage, built on a 1990s fair-lending response

The Massachusetts ONE Mortgage program is the Commonwealth's most widely used affordable mortgage for low- and moderate-income first-time homebuyers. Administered by the Massachusetts Housing Partnership (MHP) and delivered through a network of more than 40 participating banks and credit unions, ONE Mortgage was created to remove the financial barriers that historically kept creditworthy working families out of homeownership: high down payments, costly private mortgage insurance (PMI), and above-market interest rates.

The program traces its roots to 1989, when a Federal Reserve Bank of Boston study documented racial disparities in local mortgage lending. In response, MHP, the Massachusetts Bankers Association, the Massachusetts Affordable Housing Alliance, the City of Boston, and the Commonwealth launched the SoftSecond Loan Program in Boston in 1991. It expanded statewide in 1992 and was restructured and rebranded as ONE Mortgage in 2013.

How ONE Mortgage works

ONE Mortgage is a single 30-year fixed-rate first mortgage offered by participating lenders at discounted rates. Key structural features include:

• Low down payment: As little as 3% down for a single-family home, condo, or two-family home; 5% down for a three-family property. At least 1.5% of the down payment must come from the borrower's own savings.
• No PMI: Borrowers never pay private mortgage insurance, a major monthly savings compared with conventional low-down-payment loans.
• Publicly funded interest subsidy: Qualifying lower-income borrowers receive an additional interest subsidy from MHP that reduces monthly payments. The subsidy gradually steps down over the loan's first seven years.
• Affordability underwriting: Housing costs are generally underwritten so that they do not exceed roughly one-third of a household's gross monthly income.

Who qualifies

To be eligible, applicants must meet the following core requirements:

• First-time buyer status: No ownership interest in a home during the three years prior to application.
• Homebuyer education: Completion of an approved pre-purchase homebuyer class. Three-family buyers must also complete one-on-one counseling with an MHP-approved agency before closing.
• Income limits: Total household income must fall within program limits, which vary by community and household size. Borrowers whose income is below 80% of Area Median Income (AMI) and who demonstrate financial need may qualify for the deeper interest subsidy.
• Asset limit: Household assets (checking, savings, stocks, bonds) generally cannot exceed $75,000, with most retirement and 529 college-savings accounts excluded.
• Credit score: Typically a minimum 640 for single-family homes and condominiums, and 660 for two- and three-family properties, subject to each participating lender's underwriting.

ONE+ and ONE+Boston enhancements

Borrowers purchasing in Boston, Framingham, Randolph, or one of Massachusetts' 26 designated Gateway Communities may qualify for ONE+ or ONE+Boston, enhanced versions of the program. ONE+Boston, funded by the City of Boston, offers interest rates discounted below the already-reduced ONE Mortgage rate, plus downpayment and closing-cost assistance for income-eligible Boston buyers.

In 2022, MHP increased the amount of public subsidy available per loan so that borrowers under 80% AMI could receive deeper interest-rate buydowns, expanding purchasing power as home prices rose.

Relationship with MassHousing

ONE Mortgage and MassHousing are often confused because both offer affordable first-time homebuyer financing in the Commonwealth, but they are distinct programs run by separate quasi-public agencies. MHP administers ONE Mortgage through private-sector lenders, while MassHousing offers its own suite of mortgage and down payment assistance products (including up to $30,000 in down payment assistance for eligible borrowers). Buyers typically choose between them based on income limits, down payment needs, lender relationships, and how each program's subsidy affects their monthly payment.

Scale and impact

On June 26, 2024, MHP announced at the Federal Reserve Bank of Boston that the ONE Mortgage program (together with its SoftSecond predecessor) had financed home purchases for 25,000 low- and moderate-income Bay Staters. By that point in 2024, 493 Massachusetts residents had already bought homes through the program during the year, with households of color representing 69% of borrowers statewide and 82% in Gateway Cities. The program has been supported by over 40 participating lenders and 37 approved homebuyer education providers, and has financed more than 6,400 two- and three-family home purchases.

How to apply

Interested buyers should start by completing a ONE Mortgage-approved homebuyer education class, then contact a participating lender directly to begin the mortgage application. MHP maintains a current list of participating banks, credit unions, and education providers on the MHP and Mass.gov websites, along with community-specific income and loan limits.