How Much Do I Need to Buy a Home in Massachusetts?

Buying a home in Greater Boston requires careful financial planning. Here's a comprehensive breakdown of what you'll need.

Down Payment

The minimum down payment depends on your loan type:

• Conventional loan: 5-20% (less than 20% requires PMI)
• FHA loan: 3.5% with 580+ credit score
• VA loan: 0% for eligible veterans
• MassHousing: As low as 3% for first-time buyers

For a median-priced Boston home at $822,500, a 20% down payment is $164,500. Many buyers in the $500K-$800K range put down 10-15%.

Closing Costs

Massachusetts closing costs typically run 2-4% of the purchase price:

• Lender fees: $1,500-$3,000
• Title insurance: $1,000-$2,500
• Attorney fees: $800-$1,500
• Recording fees: $200-$400
• Prepaid items (taxes, insurance): $3,000-$6,000

Monthly Expenses

Beyond your mortgage payment, budget for:

• Property taxes: Massachusetts averages 1.0-1.5% of assessed value annually
• Homeowner's insurance: $1,200-$2,500/year
• HOA fees (if applicable): $0-$800/month
• Maintenance: Budget 1% of home value annually

First-Time Buyer Programs

Massachusetts offers several programs for first-time buyers:

• MassHousing: Below-market rate mortgages with low down payments
• ONE Mortgage: 3% down, no PMI for income-eligible buyers
• MHFA Down Payment Assistance: Down payment assistance for eligible buyers

Will can connect you with trusted local lenders who specialize in Massachusetts first-time buyer programs. Contact him for a free consultation.