Buying your first home in Plymouth can feel exciting and overwhelming at the same time. You might be wondering how much you need for a down payment, whether your credit is strong enough, and which loan will actually work on a home you love. You are not alone, and you have solid options.
In this guide, you will learn how first-time buyer programs like MassHousing, FHA, VA, and USDA work, who qualifies, the pros and cons of each, and how to take your next steps with confidence in Plymouth. Let’s dive in.
Top programs at a glance
MassHousing
MassHousing is the Commonwealth’s housing finance agency. It offers mortgage products and, at times, down payment and closing cost assistance for first-time and moderate-income buyers. Program details change, so you will want to confirm current rules and availability on MassHousing’s official site.
- What to know: Many products define a first-time buyer as someone who has not owned a home in the past three years, but definitions can vary by product. Some options include income or purchase-price limits, and you must work with a participating lender.
- Why consider it: Designed for Massachusetts buyers, with local DPA options and lenders who know this market.
- Tradeoffs: Specific features and funding can change, and lender overlays apply.
FHA
FHA loans are insured by HUD and are known for flexible credit standards and low down payments. Learn more from HUD’s FHA loan resources.
- What to know: The minimum down payment is typically 3.5 percent for credit scores around 580 or higher. Borrowers with scores between 500 and 579 often need 10 percent down. FHA requires an upfront mortgage insurance premium and ongoing monthly mortgage insurance for most loans.
- Why consider it: Helpful if you want a lower down payment and more credit flexibility.
- Tradeoffs: Mortgage insurance adds to your monthly payment. Some sellers prefer offers without potential FHA repair conditions.
VA
VA loans are a powerful benefit for eligible veterans, active-duty service members, certain reservists, and some surviving spouses. Explore the VA home loan benefit for details.
- What to know: Many VA buyers can purchase with 0 percent down. There is a funding fee for most borrowers, which can be financed. VA does not have monthly PMI. Lenders set credit expectations, and the home must be your primary residence.
- Why consider it: No down payment for eligible borrowers, competitive rates, and no monthly PMI.
- Tradeoffs: Must meet service eligibility, and VA-required repairs or appraisals can affect timing.
USDA
USDA Rural Development offers loans that support homeownership in designated rural areas. Most buyers use the Guaranteed loan through approved lenders. See USDA Rural Development Single Family Housing for program guidance and access to the property eligibility tool.
- What to know: USDA often allows 0 percent down for qualifying buyers, but properties must be in eligible areas and household income must be within county limits. The program charges a one-time guarantee fee and an annual fee instead of PMI.
- Why consider it: 0 percent down and accessible terms for eligible households.
- Tradeoffs: Strict location and income limits and condition standards apply.
What lenders look for
Credit and down payment
- FHA: Often accepts scores around 580+ for 3.5 percent down. Scores from 500 to 579 often need 10 percent down. Lender overlays may be stricter.
- VA: Eligibility is based on service, but many lenders prefer scores in the low to mid 600s. Exceptions can be possible.
- USDA: Many lenders look for about 640+ for automated approvals. Manual underwriting is sometimes available.
- MassHousing: Varies by product and lender. Some options are designed to help lower to moderate incomes and may be more flexible than conventional loans.
Income, price, and property rules
- FHA and VA: No standard household income caps for basic eligibility. Lender and program overlays can apply.
- USDA: County and household-size income limits apply, and the home must be in an eligible area.
- MassHousing: Some programs have income and purchase-price limits. Others do not. Confirm details for each product.
Documents for pre-approval
Be ready with:
- Photo ID and Social Security number
- Two recent pay stubs and the past two years of W-2s or tax returns if self-employed
- Bank and asset statements, including any gift funds
- Military service documents for VA eligibility when relevant
- Authorization for a credit check
How these loans fit Plymouth
Plymouth has a mix of downtown, suburban neighborhoods, and more rural sections. That matters when you compare programs.
- USDA is location-sensitive. Portions of Plymouth and nearby towns may be eligible, but eligibility is parcel specific. Use the property eligibility tool through USDA Rural Development to check an address.
- MassHousing, FHA, and VA are not limited to rural areas. They can be used throughout Plymouth County, subject to program and lender rules.
- Home prices influence total cash to close. Even a low down payment can be a large dollar amount on higher-priced homes. Ask your lender for full payment scenarios that include taxes, insurance, and any mortgage insurance or funding fees.
Which option is right for you
- If you want the lowest cash to close: VA and USDA often allow 0 percent down when you qualify. MassHousing down payment assistance can also reduce cash needs. FHA at 3.5 percent down is a strong alternative.
- If credit flexibility matters: FHA is widely known for flexibility. Some MassHousing products may help, depending on lender and program rules.
- If you are eligible for VA: VA can deliver a strong overall value with no monthly PMI and competitive rates.
- If you are considering rural areas: USDA can be excellent if the property and your household income are eligible.
Your step-by-step next steps
- Gather documents for pre-approval. Pull your ID, recent pay stubs, W-2s or tax returns, and bank statements. If using gift funds or DPA, include those details.
- Take a first-time buyer class if required. Many DPA programs require education. Check the Massachusetts Housing Partnership classes or a HUD-approved provider.
- Speak with 2 to 3 lenders. Include a MassHousing-approved lender, a VA-experienced lender if you have service eligibility, and a USDA-approved lender if you will shop in potentially eligible areas.
- Confirm program fit. Verify first-time buyer status, check USDA property eligibility on the USDA site, and confirm any income and purchase-price limits for MassHousing or local DPA.
- Compare full monthly payments. Ask lenders for side-by-side scenarios that include interest rate, any mortgage insurance, funding or guarantee fees, and escrows for taxes and insurance.
- Check occupancy and resale rules. Some DPA options may include recapture or resale restrictions. Review terms before committing.
- Plan for appraisals and repairs. FHA and VA appraisals can require repairs as a condition of approval. Build time and strategy into your offer.
- Partner with a local agent experienced with these programs. You want someone who knows how to structure offers and timelines with MassHousing, VA, FHA, or USDA financing in Plymouth.
Local resources you can trust
Offer tips in a competitive market
- Strengthen your pre-approval. Ask for a program-specific pre-approval letter so sellers see a clear, credible path to closing.
- Understand repair requirements. FHA and VA appraisals can flag safety or condition items. Plan inspection timing and, with your agent, set expectations on repairs.
- Use credits strategically. If you need help with closing costs, discuss seller credits and program caps with your lender and agent so your offer stays compliant.
When you are ready to move from research to action, you deserve a calm, knowledgeable partner who knows Plymouth and these programs inside and out. If you want help mapping your best path and setting up showings that fit your financing, connect with Shana Lundell.
FAQs
What is a first-time buyer for these programs?
- Many programs use the common definition of not owning a principal residence in the past three years, but confirm the exact definition for the program you choose.
Can I combine MassHousing with FHA, VA, or USDA?
- You typically use one first mortgage, and some MassHousing down payment assistance can be layered, but each program has strict rules for subordinate financing, so ask your lender early.
Are parts of Plymouth USDA-eligible?
- Yes, eligibility is parcel specific and can include some areas in and around Plymouth, so check addresses using the tool on the USDA Rural Development site.
How much cash do I need to close?
- VA and USDA can be 0 percent down for eligible buyers, MassHousing may offer down payment assistance, and FHA requires at least 3.5 percent down plus closing costs unless covered by credits or assistance.
Will sellers accept FHA or VA offers in Plymouth?
- Many do, but FHA and VA appraisals can require repairs; a strong pre-approval and an experienced local agent help you stay competitive.
How long does approval and closing take?
- Pre-approval can take a few days, and full closing timelines often run 30 to 60 days or more depending on the lender, appraisal, repairs, and any assistance program processing.
