City of Worcester Down Payment Program

The City of Worcester's Down Payment Assistance Program provides income-qualified first-time homebuyers with down payment and closing cost assistance.  

Available Assistance 
Low- to moderate-income applicants can receive up to $5000 in down payment and closing cost assistance with the Worcester’s Down Payment Assistance program, federally funded program through HUD Community Development Block Grant funding. 

Eligibility Requirements 
To be considered eligible for the Down Payment Program, applicants must be first-time homebuyers. This is an individual who has not owned a home in the three years prior to purchasing with assistance funds. All applicants must have a household income at or under 80% of City of Worcester’s Area Median Income. Additionally, they must attend and complete a HUD-certified a Massachusetts Homeownership accredited housing education workshop to qualify for assistance funds.  

Property Guidelines 
Homes must have been vacant or owner-occupied (by the seller’s household only) for the entire three-month period prior to the date of the purchase offer, and must continue to be vacant or owner-occupied through close of escrow. Eligible property types include new or resale single, two, three and four-family homes, town homes, or condominiums. If the borrower purchases a new construction, the foundation must have been poured prior to seller’s receipt of the buyer’s purchase offer. The purchase price should not exceed 95% of the median area purchase price for single family housing.  

All properties purchased with program funds must be in compliance with State and local building, zoning, and health and safety codes and ordinances. If the property is situated within a 100-year flood zone, the buyer will be required to buy flood insurance. 

Income Limits 
1-person household: $54,950 
2-person household: $62,800 
3-person household: $70,650 
4-person household: $78,500 
5-person household: $84,800 
6-person household: $91,100 
7-person household: $97,350 
8-person household: $103,650


*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but State and local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price, and income limits.        

Note: All figures mentioned above were accurate at the time of publication and may no longer be current. Visit the program website for updated information.