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Somerville

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Housing – Down Payment and Closing Cost Assistance

The City of Somerville Housing Division and Somerville Affordable Housing Trust Fund are currently offering three programs to assist first-time homebuyers purchasing a home in Somerville. Preference for all programs will be given to Somerville residents, although the programs are open to people who live or work outside of Somerville as well. Applications must be received prior to executing a purchase and sales agreement.

Down Payment Assistance Program 80

Available to households earning up to 80% of Area Median Income based on household size


Buyers purchasing a subsidized or inclusionary housing unit not eligible


Provides up to 15% of the acquisition price as a down payment


Assistance in the form of a 0% interest, deferred payment loan


Appreciation recapture will apply at the time of sale


Home Acquisition Price Limits apply


Applications must be received and certified in advance of buyer signing a purchase and sale. No applications will be accepted if a purchase and sale is already signed.

Closing Cost Assistance Program 80

Available to households earning up to 80% of Area Median Income based on household size


Buyers purchasing a subsidized or inclusionary housing unit are eligible


Provides up to $5,000 as closing cost assistance


Assistance in the form of a 0% interest, forgivable loan, forgiven in full at end of five year term provided there is no default on the terms of the loan.


Home Acquisition Price Limits apply


Applications must be received and certified in advance of buyer signing a purchase and sale. No applications will be accepted if a purchase and sale is already signed.

Closing Cost Program 110

Available to households earning between 81% and 110% of Area Median Income based on household size


Buyers purchasing a subsidized or inclusionary housing unit are eligible


Provides up to $3,500 as closing cost assistance


Assistance in the form of a 0% interest, forgivable loan, forgiven in full at end of five year term provided there is no default on the terms of the loan. The loan is forgiven at a rate of 20% per year.


Applications must be received and certified in advance of buyer signing a purchase and sale. No applications will be accepted if a purchase and sale is already signed.

For all programs:

Home must be the household’s primary residence


Must be first-time homebuyers


Must attend a MHC approved First-Time Homebuyer Training Class


Buyer’s must obtain a pre-approval for a standard fixed-rate 30 year mortgage to be eligible


Property must meet Housing Quality Standards


Eligible households will receive an Eligibility Certificate, which will be good for 6 months. To extend the term, households will need to resubmit income certification documentation.


Assistance is not guaranteed at the time of issuance of an Eligibility Certificate and is contingent on availability of funds at the time of purchase

Income Guidelines

Family Size 80% INCOME 110% INCOME

1 $47,150 $71,650
2 $53,900 $83,050
3 $60,650 $93,450
4 $67,350 $103,800
5 $72,750 $112,100
6 $78,150 $120,450
7 $83,350 $128,750
8 $88,950 $137,050