*Please note that MassHousing is not currently offering MassDREAMS grants with its home loans. However, MHP is continuing to process MassDREAMS applications.
Q: How do I find out if I am eligible for assistance through the MassDREAMS Program?
Click here to complete a pre-eligibility screening. By answering a series of questions and attesting to the truthfulness and accuracy of your answers, you’ll receive a preliminary determination of potential eligibility.
Q: What types of expenses can be covered by MassDREAMS?
The program can cover:
- Down payment assistance equal to 5% of the purchase price
- Eligible closing costs
- Mortgage insurance subsidies (if applicable)
Q: How much assistance can I receive?
It depends on your household income:
- Households earning less than 100% area median income (AMI) are eligible for a maximum of $50,000
- Households earning between 100.1% and 135% of area median income (AMI) are eligible for a maximum of $35,000
Q: What types of first mortgage loans can be paired with assistance through MassDREAMS?
Assistance through the MassDREAMS can only be paired with a first mortgage product offered by MHP or MassHousing.
Q: What documentation is needed with my application?
The following types of documents may be asked for during the application process:
- Proof of residency documentation
- Current apartment lease, or
- Utility bill, or
- Voter registration
- Income documentation, which may include:
- Acceptable income documents may include paystubs, tax filings, depository institution (or bank) statements demonstrating regular income, or a statement of income from an employer
- Benefit determination letter from any Department of Transitional Assistance (DTA) administered benefit program that serves households 135% AMI or lower, including SNAP, TAFDC, EAEDC, SSI, SSP
- Social security, child support, unemployment, and other income statements as applicable
- Identification such as state IDs, driver’s licenses, or passports
Q: Do I need to pay back any assistance I receive?
No, you do not need to repay the financial assistance provided under the MassDREAMS Program so long as you comply with the terms of your Grant Agreement. This includes, but is not limited to, having provided truthful information in your MassDREAMS application, not engaging in fraudulent activity related to the MassDREAMS program, and having made accurate representations in the Grant Agreement.
Q: Will the benefits I receive be considered taxable income?
Funds received from the MassDREAMS program are not considered taxable income by the federal government or Massachusetts state government. However, this information is not to be considered formal tax advice, and you should contact your tax preparer for further guidance.
Q: How is household income calculated?
The income eligibility calculation differs for MassHousing and MHP. MassHousing will utilize the annualized borrower income from all sources for qualification. MHP will utilize the annualized income from all household members from all sources who expect to occupy the property. Please work with a MassHousing or MHP approved lender to determine and ensure eligibility.
Q: What types of property can I purchase with assistance from MassDREAMS?
Eligible property types include condominium, single-family, two-family, three-family, and four-family properties. Note: MHP does not provide financing for four-family properties.
Q: How do I find out if I’m eligible for the MassDREAMS?
You can answer a pre-eligibility screening questionnaire here. By answering a series of questions and attesting to the truthfulness and accuracy of your answers, you’ll receive a preliminary determination of potential eligibility.
Q: How will I be notified of receiving assistance through MassDREAMS?
Applicants will be notified of the ultimate award and a breakdown of how those funds are spent via email. You will not receive money directly. The award will go directly to your mortgage lender who will then apply it to the down payment and/or closing cost portions of your home purchase.
Q: Will homebuyers receive the MassDREAMS assistance directly?
No, homebuyers will not receive the money directly. The award will go directly to your mortgage lender who will then apply it to the down payment, closing cost, and/or mortgage insurance portions of your home purchase.
Q: Can I combine other forms of down payment assistance with assistance through MassDREAMS?
Yes. You can layer multiple sources of assistance with MassDREAMS. This program does not prohibit the combination of funds with funds from other sources. Additional forms of down payment assistance can be combined as long as the guidelines for those other sources allow it.