City Financial Assistance for Homebuyers

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The City of Cambridge offers two types of financial assistance to homebuyers. The Financial Assistance Program provides funding for income-eligible first-time homebuyers to purchase a home in Cambridge on the market. The home purchased is subject to the terms of the City's affordable housing restriction. The Downpayment Assistance Program is open to any income-eligible first-time homebuyer purchasing a home in the city. The home does not need to be purchased through the City's affordable housing programs.

Financial Assistance Program

The City’s Financial Assistance Program (FAP) provides funding for eligible applicants to purchase homeownership units available on the market. Within price limits set by the Housing Division, eligible buyers can receive up to 40% of the purchase price for a three-bedroom unit, 35% for a two-bedroom, and 30% for a one-bedroom unit from the City.

Approved applicants are responsible for finding a unit that meets that meets their needs and the program’s requirements as described below. Approved applicants receive a pre-approval letter from the City to use when making offers on market units for sale in the city.

In order to qualify, applicants must:

  • Be a First-time Homebuyer;
  • Complete a First-Time Homebuyer workshop;
  • Meet income eligibility requirements with a household income of no more than 100% of the Area Median Income;
  • Be a current Cambridge resident;
  • Purchase a single family home or condominium in the city which has been approved by Housing Division staff;
  • Obtain a conventional fixed-rate mortgage from a bank with a combined monthly housing payment (mortgage, condo fee, taxes and insurance) that is between 25 and 33 percent of gross monthly income;
  • Agree to the City’s limited equity and resale restrictions;
  • Reside in the purchased property as their only residence.

We recommend that potential applicants discuss the program with Housing Division staff prior to submitting an application. If you are interested in learning more about the Financial Assistance Program, please contact Antonia Finley at 617/349-4643 or afinley@cambridgema.gov .

Click here for the Financial Assistance application

Click here for current income limits

Downpayment Assistance

The City of Cambridge offers downpayment and closing cost assistance to income-eligible first-time homebuyers purchasing a home in Cambridge. Eligible buyers receive assistance of up to 6% of the purchase price, or $10,000, whichever is greater.

How it works: 

This assistance is in the form of a forgivable loan. Twenty percent of the funding is forgiven each year over a five-year period provided the buyer uses the home as their residence. There are no other restrictions limiting the future resale price of the property, unless assistance is used to purchase an affordable homeownership unit.

Participants must:

  • Be a First-time Homebuyer;
  • Complete a First-Time Homebuyer workshop;
  • Meet income eligibility requirements with a household income of no more than 80% of HUD Area Median Income;
  • Purchase a single family home, condominium, or two or three family home in the City;
  • Be unable to purchase the home without assistance;
  • Utilize all other available resources;
  • Reside in the purchased property as their only residence;

For More Information

For more information, contact Antonia Finley, Homebuyer Coordinator, at 617/349-4643 or afinley@cambridgema.gov.

Click here for current income limits