Buying in Cambridge can feel out of reach when you look at prices and down payment numbers. If you are a first-time buyer, ONE Mortgage can lower your upfront costs and help you qualify, even if you do not have 20 percent down. In this guide, you will learn how the program works, who qualifies, what to expect with condos and 2–3 family homes, and how to craft a competitive offer in Cambridge. Let’s dive in.
What ONE Mortgage is
ONE Mortgage is a Massachusetts homebuyer program that helps eligible first-time and income-qualified buyers access low down payment financing. It is offered through participating lenders and supported by MassHousing. The program aims to make homeownership more attainable in high-cost markets like Cambridge by reducing cash needed at closing and offering flexible underwriting.
Why Cambridge buyers consider it
- Lower down payment needs mean you can enter the market sooner.
- Program underwriting may be more flexible than some conventional loans.
- Depending on current offerings, you may have options that reduce or avoid monthly PMI. Confirm details with a participating lender.
Who qualifies and what you need
Program rules change, so plan to confirm current requirements with a participating lender. In general, you should be a first-time buyer or meet an allowable exception, meet income and asset limits for Middlesex County, and plan to occupy the home as your primary residence.
Be prepared to document the basics:
- Photo ID and Social Security numbers for all borrowers
- Recent pay stubs, W-2s, and two years of tax returns
- Bank statements and documentation of any other income
- Proof of any down payment assistance you plan to use
- Completion of required homebuyer education if the lender or program requires it
Property types in Cambridge: what to know
Cambridge has a large share of condos and some 2–3 family properties. Each comes with unique program and underwriting considerations.
Condos: approval matters
Many state-backed loans require the condo association to meet specific standards. A lender will review insurance, budget reserves, owner-occupancy ratios, and any litigation. If a condo building is not approved by the program or a participating lender, you may not be able to finance it with ONE Mortgage until it is cleared. Because many Cambridge condos are small or newly converted, approval status can be a common hurdle. Ask your lender to check project eligibility early.
2–3 family homes: owner-occupied rules
Owner-occupied 2–3 family properties may be eligible with ONE Mortgage. You must live in one unit as your primary residence. If you plan to use rental income to qualify, the lender will underwrite that income and may require lease documentation and reserve standards. Multi-unit deals can be competitive, so expect more documentation and a careful appraisal.
Costs, payments, and budgeting
ONE Mortgage reduces your upfront down payment, but you still need to plan for full closing costs. Build a realistic budget that reflects Cambridge property types.
- Down payment: current minimums vary by program and any paired assistance. Confirm with your lender.
- Closing costs: title, appraisal, attorney or settlement fees, and prepaid taxes and insurance still apply.
- Mortgage insurance: with low down payment, PMI is common on conventional loans. ONE Mortgage may offer structures that reduce or remove PMI. Ask your lender how the program handles this and whether there are any monthly or upfront program fees.
- Rate and underwriting: rates are set by participating lenders and move with the market. The program often balances competitive rates with flexible underwriting, but exact thresholds vary by lender.
Budgeting for Cambridge condos
Condo fees in Cambridge can be significant and will count toward your monthly housing cost when you qualify. Include HOA dues, master insurance, and any special assessments in your budget. A lender will factor HOA dues into your debt-to-income ratio.
Budgeting for 2–3 family homes
Plan for maintenance, vacancies, and capital repairs. If rental income is part of your qualification, discuss how the lender will count it and what documentation is required. Keep reserves in mind, especially for older or converted properties.
Competing in Cambridge with ONE Mortgage
Cambridge is a high-demand market with limited inventory. Sellers often prefer offers with strong financing and quick timelines. You can still compete with ONE Mortgage by presenting a clear and credible path to closing.
- Get a program-specific pre-approval letter from a participating lender.
- Complete any required homebuyer education early. It shows you are prepared.
- Shorten contingency periods where it is prudent. Review timing with your agent and attorney.
- Consider a higher earnest money deposit and a flexible closing date to signal confidence.
- For condos, verify building approval as soon as you identify a target property. Share any lender confirmation with the listing side.
Timeline: from prep to keys
Every deal is different, but here is a typical sequence you can expect.
- Education and prep: schedule and complete any required counseling, gather documents. This can take 1 to 3 weeks.
- Lender meeting: obtain a ONE Mortgage pre-approval and product rundown. Plan on a few days depending on responsiveness.
- Home search: tour properties and check condo approval status early. This can take weeks or months.
- Offer: include your program pre-approval and any condo approval information you have.
- Under contract: appraisal, inspections, and final underwriting. Expect 30 to 45 days, especially if condo approval or down payment assistance reviews are needed.
- Closing: sign, fund, and record. You get keys after recording.
Common delays include condo approval reviews, missing documentation, and appraisal or repair negotiations. Stay ahead of these by gathering paperwork early and confirming building eligibility up front.
Compare your loan options
It pays to compare ONE Mortgage with other low down payment paths.
- Conventional 3 to 5 percent down: widely used by first-time buyers with stronger credit. PMI applies until you reach 20 percent equity.
- FHA: 3.5 percent down for many buyers. Mortgage insurance is required and condo approvals follow FHA rules.
- VA: zero down for eligible veterans. Different eligibility and occupancy rules apply.
- ONE Mortgage: state-supported features for first-time and income-eligible buyers in Massachusetts. Potential PMI relief and flexible underwriting, with program-specific limits and documentation.
Ask a participating lender to model monthly costs, cash to close, and condo approval considerations for each option. Seeing side-by-side scenarios helps you choose the best fit for your budget and your target property type.
Action plan for Cambridge buyers
Follow these steps to move forward with confidence:
- Step 0: Review whether you likely meet first-time, income, and asset guidelines for ONE Mortgage.
- Step 1: Speak with a participating lender and request a program-specific pre-approval.
- Step 2: If you have a building in mind, ask the lender to check condo or property eligibility right away.
- Step 3: Complete required homebuyer education as soon as possible.
- Step 4: Work with a Cambridge agent who understands condo approvals and multi-family underwriting.
- Step 5: Budget for closing costs, HOA fees, reserves, and potential appraisal gaps.
- Step 6: Craft a clean, credible offer with a realistic timeline and strong communication.
The bottom line
ONE Mortgage can lower your upfront costs and open the door to Cambridge homeownership if you are a first-time and income-eligible buyer. Success comes from early pre-approval, confirming condo or multi-family eligibility, and presenting a strong, organized offer. If you want an experienced partner who understands Cambridge condos and multi-family properties, connect with me. Let’s map your options and plan your next steps. Reach out to Boston Real Estate Pros to schedule a consultation.
FAQs
Can I buy a Cambridge condo with ONE Mortgage?
- Yes, if the condo association meets program or lender approval standards. Ask your lender to confirm building eligibility early in your search.
Can I use ONE Mortgage for a 2–3 family home in Cambridge?
- Many owner-occupied 2–3 family properties can qualify, but you must live in one unit and meet underwriting rules for any rental income.
Do I need to be a first-time buyer to use ONE Mortgage?
- The program targets first-time buyers, with some exceptions that you should verify with a participating lender.
How much cash do I need at closing with ONE Mortgage?
- Your cash to close depends on your down payment, any assistance you use, and standard closing costs like title, appraisal, and prepaid items.
Will sellers accept an offer with ONE Mortgage financing?
- Yes, especially when you present a strong pre-approval, confirm condo eligibility, and offer clean, timely terms that give sellers confidence.
