FHA: the 3.5% down option
First-time buyers often choose FHA because it asks for a small down payment: 3.5% with a credit score of 580 or more. The home must be where you live. FHA covers 1–4 unit properties, so you could buy a 2-family in Lynn, live in one unit and rent the other.
In Essex County for 2026, the FHA loan limit is $962,550 for a single-family home or condo and $1,232,250 for a 2-family.
Since May 25, 2025, non-permanent residents can no longer get FHA loans. A lender can tell you which loan types fit your situation.
MassHousing and ONE Mortgage
- MassHousing down payment assistance: up to $30,000 as a 0% deferred loan, or up to $25,000 as a 2% or 3% loan repaid over 15 years. It is for income-eligible first-time buyers who will live in the home, and it covers single-family homes, condos and 2–4 family homes. A homebuyer class is required. More at masshousing.com.
- ONE Mortgage: a Massachusetts program with 3% down (5% on a 3-family) and no private mortgage insurance. There are income and asset limits. More at mass.gov.
Some programs can be combined, and your lender confirms which ones you qualify for. Get pre-approved before you start touring, so sellers treat your offer as serious.
Homebuyer classes in Lynn
Most of these programs require a first-time homebuyer class. In Lynn, Lynn Housing Authority & Neighborhood Development (LHAND) offers them; its 2026 class ran July 11–12 in English. Ask LHAND for upcoming dates, or choose another CHAPA-approved class.
Lynn and its neighbors
Lynn has a stop on the Newburyport/Rockport Commuter Rail line. The station closed for rebuilding in 2022, and temporary platforms opened in December 2023. There is no Blue Line service to Lynn today; an extension has been discussed for years but has no funding.
Swampscott, Salem, Peabody and Saugus each have their own mix of home styles and prices. Suad helps you compare them and can set up new-listing alerts for every town on your list.
How Suad helps first-time buyers
Suad Kantarevic has 25+ years in Greater Boston real estate. He helps you get your finances ready, points you to lenders who know these programs, and explains each step before you take it, in English, Spanish (with Diana) or Bosnian. When closing day comes, you will already know what is in the paperwork.
Sources: HUD: FHA 3.5% down payment with a 580 credit score · LendingTree: 2026 FHA loan limits in Massachusetts (by county) · HUD: FHA announces 2026 loan limits · MassHousing: Down Payment Assistance · Mass.gov: ONE Mortgage Program · Daily Item: LHAND to hold first-time homebuyer class (June 23, 2026) · Wikipedia: Lynn station (Newburyport/Rockport Line) · HUD Mortgagee Letter 2025-09: FHA residency requirements · Mass.gov: Property Transfer Lead Paint Notification
