Worcester City Hall. File photo
First-time homebuyers in Massachusetts’ largely working-class, industrial Gateway Cities have a new mortgage option at their disposal that’s designed to make home ownership more attainable.
The Massachusetts Housing Partnership’s ONE+ Mortgage program is launching with over $11 million in public and private support led by the state, Eastern Bank, the Eastern Bank Foundation and the Boston Foundation’s Racial Wealth Gap Partnership.
“We are thrilled to unveil this new initiative, which represents an exciting step forward in expanding access to homeownership,” Clark Ziegler, executive director at MHP, said at a press conference in Lynn Monday afternoon. “Through our partnership with the Boston Foundation, Eastern Bank Foundation and other funders, we are able to provide this much-needed support to first-time buyers and contribute to stronger, more vibrant communities.”
The ONE+ program provides heavily discounted, fixed-rate 30-year mortgage, along with up to $50,000 in down payment and closing cost assistance. First-time homebuyers who utilize the program also don’t need to pay for private mortgage insurance. This program is available to low to moderate- income first-time homebuyers first-time homebuyers in the 26 Gateway Cities as well as Framingham, Randolph and Boston.
Additionally, prospective buyers must complete a homebuyer education class and, if purchasing a multifamily property, participate in a pre-purchase landlord course.
The program builds on MHP’s successful statewide ONE Mortgage and ONE+Boston mortgage products. The two products offer cheaper alternatives to FHA mortgages often recommended to middle- and working-class first-time buyers.
“Our administration is committed to making it more affordable and easier for families to afford to buy a home. Homeownership is a crucial tool for building intergenerational wealth and allowing families to build their futures here in Massachusetts,” Gov. Maura Healey said. “We’re proud to partner with the Massachusetts Housing Partnership, the Boston Foundation, Eastern Bank and the Eastern Bank Foundation to support this transformative program.”
The Eastern Bank Foundation’s donation of $4 million will specifically help first-time homebuyers in Lynn Lawrence and Lowell.
“Providing pathways to homeownership and wealth building are critical parts of our mission as Greater Boston’s leading local bank and when they’re combined, life-changing impact happens,” said Bob Rivers, executive chair and chair of the board of directors of Eastern Bank. “Our decades-long relationship with MHP and original support of programs similar to the ONE Mortgage Program have made homeownership a reality for thousands of low- and moderate-income families. We congratulate MHP on its expansion of ONE+, especially when the high cost of housing across our region has made buying a home all the more challenging. We are here to do our part in removing the barriers to homeownership, especially in the Gateway Cities of Lynn, Lawrence and Lowell where we have a long-standing focus on supporting economic development.”
Buying a home in Boston is an increasingly expensive process. The latest data from The Warren Group, the publisher of Banker & Tradesman, showed that the median single-family sale price increased 1.6 percent on a year-over-year basis last month, to $615,000. That’s up from $575,570 in October 2023. This is a record-high median price for a single-family home in the state.
“The ONE+ program will create more affordable homeownership opportunities for first-time homebuyers in our Gateway Cities,” Housing and Livable Communities Secretary Ed Augustus said Monday. “For far too long, too many of our low-income and minority households have been boxed out of the market. The Healey-Driscoll administration is committed to helping people achieve the American dream of homeownership and today’s announcement is one step toward creating a more affordable and equitable Massachusetts.”
