Down Payment Assistance: How BayCoast Mortgage Can Put $10,000 Toward Your First Home
BayCoast Mortgage | Serving Massachusetts & Rhode Island
For most first-time buyers in Massachusetts and Rhode Island, the down payment isn’t a detail. It’s the whole obstacle. Home prices across the region have climbed steadily, and saving 10% or 20% of a purchase price can take years longer than saving for the mortgage payment itself. BayCoast Mortgage’s Down Payment Assistance (DPA) program was built specifically to close that gap for eligible first-time homebuyers in our local communities.
What the Down Payment Assistance Program Offers
BayCoast Mortgage matches eligible first-time buyers dollar-for-dollar, up to $10,000, toward their down payment when purchasing a home in an eligible Massachusetts or Rhode Island community. That means a buyer who can put $10,000 of their own money down could have it matched by BayCoast, effectively doubling their buying power at the closing table without adding to their monthly mortgage payment.
The program comes in two structures, and which one applies depends on the specifics of the loan:
- Tier I: Up to $10,000, deferred with no monthly payments or interest. This second mortgage is forgiven after five years as long as the first mortgage stays current and the home remains owner-occupied. If the home is sold within five years, the funds are repaid on a pro-rata basis: 20% for every year remaining in the five-year term.
- Tier II: Up to $10,000, with payments deferred for the first five years. Starting in year six, repayment begins interest-free over the remaining ten years. If the home sells within the first five years, the second mortgage must be paid off in full.
What This Looks Like in Practice
Consider a first-time buyer purchasing a $300,000 home in New Bedford with a 5% down payment. Under a standard conventional loan, that’s $15,000 needed at closing, on top of closing costs. If that buyer qualifies for BayCoast’s Tier I Down Payment Assistance, BayCoast matches up to $10,000 of that down payment dollar for dollar. That reduces the cash the buyer needs to bring to closing to roughly $5,000, while the matched funds sit as a deferred second mortgage with no monthly payment and no interest, forgiven entirely after five years as long as the buyer stays in the home and keeps the first mortgage current.
The buyer’s monthly mortgage payment doesn’t change because of the DPA funds. The match affects what’s needed at the closing table, not what’s owed every month, which is exactly why it can be the difference between buying this year and waiting several more years to save the full amount independently.
Who Qualifies
Eligibility comes down to three things: being a first-time homebuyer, meeting income and purchase price limits, and buying in one of BayCoast’s eligible communities. That list covers dozens of towns, including Fall River, New Bedford, Dartmouth, Fairhaven, Somerset, Swansea, and Westport, plus other Bristol, Plymouth, and Norfolk County communities in Massachusetts, and Providence, Pawtucket, Cranston, Newport, and Bristol, along with towns throughout Kent and Newport Counties in Rhode Island.
Because eligibility hinges on both income limits and the property’s location, the fastest way to know where you stand is to apply. BayCoast Mortgage will confirm your eligibility and DPA funding details as part of your application, and funds are made available at closing for qualified borrowers.
Who the DPA Program Might Not Be Right For
The DPA program is a strong fit for many first-time buyers, but it isn’t automatic for everyone. It generally won’t apply if you’ve owned a home before, if the property you’re buying falls outside an eligible Massachusetts or Rhode Island community, or if your household income exceeds the program’s limits. Buyers who plan to sell within the first five years should also factor in the pro-rata or full repayment terms before treating the funds as free money with no strings attached.
In those situations, a loan officer can help you weigh the DPA program against other first-time buyer resources, such as MassHousing programs, to figure out which combination actually works best for your purchase.
How to Apply
Getting started with the DPA program doesn’t require a separate application. When you apply for a mortgage with BayCoast Mortgage, a loan officer will ask about your first-time buyer status and the location of the property you’re considering. If you meet the initial criteria, they’ll confirm your eligibility, walk you through whether Tier I or Tier II applies to your loan, and provide the specific funding details in writing before you’re at the closing table.
Because approval depends on both your income and the property address, it helps to have a target town or a short list of towns in mind before you apply, so your loan officer can confirm eligibility quickly rather than guessing at it.
Why This Matters More Than a Lower Rate
Buyers often focus on interest rate, and it matters, but for a first-time buyer, the down payment is usually the harder problem to solve. A lower rate saves you money every month over 30 years. A down payment match gets you into a home years sooner. Pairing the DPA program with the right loan type (conventional, FHA, or a MassHousing program suited to your situation) is where a local loan officer earns their keep, running the numbers on your specific scenario rather than a generic estimate.
Frequently Asked Questions
How much money can I get through the DPA program?
Eligible first-time homebuyers can receive a dollar-for-dollar match of up to $10,000 toward their down payment, structured as either a deferred forgivable loan (Tier I) or a deferred, interest-free loan (Tier II).
Do I have to pay the money back?
It depends on the tier and how long you stay in the home. Tier I funds are forgiven entirely after five years of on-time payments and owner-occupancy. Tier II funds are repaid interest-free starting in year six. Selling within the first five years triggers repayment under both tiers.
What towns are eligible?
Dozens of communities across Bristol, Plymouth, Norfolk, and Worcester Counties in Massachusetts, and Kent, Newport, and Providence Counties in Rhode Island. A BayCoast Mortgage loan officer can confirm whether your target town qualifies.
Can I combine this with other first-time homebuyer programs?
Possibly. Massachusetts offers additional programs, such as those through MassHousing, that may be layered with other financing depending on your situation. Talk to a loan officer about what combination works for your purchase.
Does the down payment assistance count as taxable income?
BayCoast Mortgage does not provide tax advice, and how DPA funds are treated can depend on your individual situation. Check with your loan officer or a tax professional for guidance specific to your purchase.
Can I use the DPA program together with an FHA or MassHousing loan?
In many cases, yes. The DPA program is generally compatible with several first-time buyer loan types, though the specific pairing depends on your loan program and lender guidelines. A loan officer can confirm what’s allowed for your loan.
What happens if I refinance during the five-year period?
Refinancing your first mortgage during the DPA period can affect your second mortgage terms. It’s worth discussing your plans with a loan officer before refinancing, so you understand how it interacts with your Tier I or Tier II terms.
Ready to See What You Qualify For?
The only way to know your exact numbers is to apply. BayCoast Mortgage loan officers throughout Massachusetts and Rhode Island can walk you through eligibility, run your DPA funding scenario, and help you understand what a $10,000 match means for your specific purchase.
