Confido Builders ADUs

Statewide Programs · MassHousing & MHP

Available throughout all of Massachusetts.

These are the foundational ADU financing programs available in every Massachusetts municipality — Newton, Needham, Wellesley, Sudbury, Natick, Framingham, Brookline, and beyond. For most homeowners, this is the financing path. If your property is within City of Boston limits, you have a separate set of city-specific programs available — see the Boston-specific stack below ↓

How they work together: The MHP feasibility study (Stage 1) gives you a professional site assessment at no cost. That study then feeds directly into your MassHousing ADULP application (Stage 2) — the construction loan that funds your build up to $250,000.

Stage 1 · Predevelopment

MHP ADU Incentive Program — Free Feasibility Studies

Massachusetts Housing Partnership · Statewide · Launching Spring 2026

Cost to Homeowner

Free
MHP pays approved Feasibility Study Providers directly

Repayment / Obligation

None — participation does not obligate you to build

What the Study Covers

Site conditions & constraints Local zoning & permitting Utilities (water, sewer, energy) Preliminary design considerations High-level cost & budget feasibility

Eligibility

Any single-family homeowner in Massachusetts No income cap stated for Phase One No obligation to build after study is complete

How It Feeds Into Construction Financing

1Submit interest form at mass.gov/forms/adu-incentives-program

2MHP matches you with an approved Feasibility Study Provider

3FSP completes feasibility study — site, zoning, utilities, preliminary design, cost estimate

4Decide to proceed — hire architect and GC for full design

5Obtain local building permit → apply for MassHousing ADULP (below)

🔗 mhp.net/one-mortgage/adu-incentive-program · [email protected]

Stage 2 · Construction Loan

MassHousing ADU Loan Program (ADULP)

MassHousing · Fixed-Rate + 0% Deferred Second Mortgages · Statewide · Launched March 2026

Max — Detached ADU

$250,000

Max — Attached ADU

$150,000

Loan Structure

Two-part: amortizing interest-bearing loan + matched 0% deferred portion. Both are second mortgages.

Interest Rate

5.25% fixed amortizing
0% deferred matched portion

Loan Term

20 years on amortizing portion. Deferred portion repaid at sale or refinance — no monthly payment on that layer.

Monthly Payment

Yes — on the amortizing portion only. Deferred layer has no monthly obligation.

Income Eligibility

At or below 135% AMI per HUD guidelines, with the specific dollar limit determined by your town's HUD Metro FMR Area. For a 4-person household in the Boston-Cambridge-Quincy HMFA: up to $217,215. See the AMI section below for all household sizes, and look up your specific HMFA at huduser.gov.

Forgiveness

No forgiveness — both portions must be repaid in full. Deferred portion due at sale or refinance.

Other Eligibility

Owner-occupied single-family home anywhere in Massachusetts Income at or below 135% AMI All plans, permits, and pre-development materials must be in hand before applying Must be "dig ready" — ready to begin construction immediately upon loan closing Must apply through an approved MassHousing lending partner

Approved Lenders — Greater Boston & MetroWest

BankESB — All counties statewide BankFive — All counties statewide StonehamBank — Essex & Middlesex Counties Fidelity Bank — Norfolk & Worcester Counties Bristol County Savings — Bristol, Plymouth, Barnstable

When to Apply

1Complete MHP feasibility study (Stage 1) — generates site assessment and preliminary budget

2Hire architect and GC — complete construction drawings and full cost estimate

3Obtain local building permit — must be in hand before applying for ADULP

4Contact an approved MassHousing lender — submit application with full permit package

5Lender underwrites and closes loan — construction starts

6Construction draws released per lender inspection schedule

🔗 masshousing.com/home-ownership/homeowners/adu

City of Boston Programs

If your property is in Boston, additional programs can cover the full cost.

For owner-occupants of 1–3 unit homes within City of Boston limits, the Boston Home Center offers a coordinated stack of three programs — a soft-cost grant, a 0% deferred forgivable construction loan, and a partner bank loan to fill any remaining gap. Used together, they can effectively finance the entire project.

These programs apply to City of Boston properties only. If your property is in any other municipality, see the Statewide programs above ↑.

Layer 1 · Grant

Technical Assistance Grant

Boston Home Center (BHC) · Mayor's Office of Housing

Maximum Amount

$7,500

Type

Reimbursement grant — costs paid by homeowner first, then reimbursed

Interest / Repayment

None — it's a grant, not a loan

Forgiveness

N/A — no repayment ever required

Eligible Use of Funds

Soft costs only: architect retainer, GC deposit, engineering, permit fees. Cannot be used for any construction costs.

Income Eligibility

Owner-occupants at or below 135% AMI (see AMI section). Clients between 120–135% AMI must match funding 1:1 with personal funds.

Other Eligibility

Owner-occupied 1–3 unit home within City of Boston ADU design & build team assembled Building permit not yet filed Must also enroll in BHC ADU Loan (Layer 2) to receive grant

When & How to Apply

1Apply early in the design phase, before filing a building permit

2BHC assigns a Construction Specialist — advises on code requirements and cost

3Incur and pay eligible soft costs out of pocket

4Obtain ISD building permit — grant is not released until permit is approved

5Enroll in BHC ADU Loan (Layer 2) → submit reimbursement claim

🔗 boston.gov/departments/housing/adu-financial-assistance-program · [email protected]

Layer 2 · City Loan

ADU Construction Loan — 0% Deferred, Potentially Forgivable

Boston Home Center · City of Boston

Maximum Amount

$50,000

Interest Rate

0% — no interest ever

Monthly Payment

None — fully deferred

Forgiveness

Forgiven after 5 continuous years of owner-occupancy. Repayable only if sold or refinanced before year 5.

Eligible Use of Funds

Construction costs only. Cannot cover design or permitting. Paid in phased installments directly to the GC — not to the homeowner — following BHC construction inspections.

Income Eligibility

At or below 135% AMI. Clients between 120–135% AMI must match the city's $50K loan 1:1 with personal funds or a bank loan.

Other Eligibility

Owner-occupied 1–3 unit home within City of Boston ISD building permit in hand GC and design team under contract Layer 1 (Technical Assistance Grant) enrollment required first Homeowner must exhaust their own share of construction costs before city releases funds

Staging & Draw Process

1Complete Layer 1 enrollment first — BHC grant is a prerequisite

2Apply for ADU Loan once scope, design, and GC cost estimate are finalized

3Receive ISD building permit — required before loan is approved

4Loan closes → GC executes signed contract with homeowner

5Homeowner pays their portion first. City loan is gap financing — released only after homeowner funds are spent

6BHC Construction Monitoring Unit inspects at each phase → draw released directly to GC

75-year occupancy clock starts at certificate of occupancy → loan forgiven at year 5

🔗 boston.gov/departments/housing/adu-financial-assistance-program · [email protected]

Layer 3 · Partner Bank

BHC Partner Bank Loan — Gap Financing Above $50K

Leader Bank · Dedham/Southshore Bank · Needham Bank · Cooperative Bank

Maximum Amount

Varies — covers construction cost gap above the $50K city loan, based on lender underwriting

Interest Rate

Below-market (city-negotiated pilot rate); varies by lender. Standard amortization — not deferred.

Monthly Payment

Yes — standard amortizing loan payments

Forgiveness

None — must be fully repaid

Purpose

Fills the financing gap on projects that exceed the $50K city loan. Designed for homeowners who need $75K–$175K+ for a detached ADU and can't access traditional equity financing. Not the same as MassHousing ADULP — this is a separate city-brokered private bank product available only to BHC-enrolled Boston homeowners.

Eligibility

BHC city loan (Layer 2) approval is a hard prerequisite — banks will not lend into this program without it Owner-occupied 1–3 unit home in City of Boston Creditworthy per individual bank standards

How It Works

1Complete Layers 1 and 2 first — BHC enrollment and city loan approval required

2BHC refers eligible clients to partner lenders

3Apply directly with chosen partner bank — standard mortgage underwriting applies

4Bank loan draws coordinate with BHC construction inspection schedule

🔗 boston.gov/departments/housing/adu-financial-assistance-program

Boston Complete Financing Stack — Example $175K Detached ADU

Layer	Program	Amount	Rate	Monthly Pmt	Forgiveness
1	BHC Technical Assistance Grant	Up to $7,500	N/A	None	Reimbursement — not a loan
2	BHC 0% City Construction Loan	Up to $50,000	0%	None (deferred)	Forgiven after 5 yr owner-occupancy
3	BHC Partner Bank Loan (gap)	~$117,500 balance	Below-market	Yes — amortizing	None — must be repaid
Total Available (Boston)		$175,000+	Blended favorable	Layer 3 only	Up to $57,500 forgiven at 5 yrs

Side-by-Side Comparison

Boston vs. Statewide.

If your property is within City of Boston limits, you have access to the full stack of programs. Outside Boston, you use the statewide programs as your primary path.

Factor	🏙 City of Boston Clients	🏛 Statewide / MetroWest Clients
Programs Available	BHC Technical Assistance Grant + BHC 0% Forgivable City Loan + BHC Partner Bank Loan — a self-contained three-program city stack	MassHousing ADULP + free MHP Feasibility Study
Soft Cost Help	Up to $7,500 reimbursement grant for design & permitting costs	Free MHP feasibility study (professional assessment, no dollar reimbursement)
Max Construction Financing	$50K city loan + partner bank gap loan = effectively full project coverage	Up to $250,000 detached / $150,000 attached via MassHousing ADULP
Income Limit (4-person)	135% AMI = $217,215 (HUD 2025 Boston-Cambridge-Quincy HMFA)	135% AMI of your specific HMFA — Boston HMFA limit is $217,215; other HMFAs vary
Property Requirement	Owner-occupied 1–3 unit home within City of Boston	Owner-occupied single-family home anywhere in MA
Multi-Unit Properties	2- and 3-family properties qualify for BHC programs	MassHousing ADULP is single-family only. 2–3 unit owners must use BHC (if Boston) or conventional financing.
Forgiveness Available?	Yes — $50K city loan forgiven after 5 yrs owner-occupancy. Grant has no repayment.	No — MassHousing ADULP must be repaid in full. No forgiveness provision.
Deferred Payments?	Yes — BHC city loan is fully deferred with no monthly payments	Partial — 0% deferred layer has no monthly payments; amortizing portion does
Who Receives Draws?	BHC pays directly to GC after city inspections. Homeowner pays their share first.	Lender controls draw schedule; standard construction loan disbursement to GC
First Step	Apply to BHC Technical Assistance Grant early in design phase — contact [email protected]	Submit MHP feasibility interest form at mass.gov/forms/adu-incentives-program
Best For	Boston homeowners who need maximum subsidy, deferred payments, and forgiveness potential	MetroWest / suburban homeowners who need substantial construction financing at favorable rates

Income Eligibility

AMI limits — who qualifies?

All ADU programs use HUD Area Median Income (AMI) as the eligibility threshold. The ceiling for all programs is 135% AMI. Your specific AMI limit depends on which HUD Metro FMR Area (HMFA) your town falls within — the figures below show the Boston-Cambridge-Quincy HMFA, which is the most relevant for Boston, Newton, Wellesley, Sudbury, and most MetroWest towns. Other parts of Massachusetts use different HMFAs with different limits.

Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area

This is a specific HUD-defined geographic area covering Boston, Cambridge, Quincy, and roughly 100 surrounding cities and towns across Essex, Middlesex, Norfolk, Plymouth, and Suffolk counties, plus parts of southern New Hampshire. If your town isn't in this HMFA, the AMI table below does not apply to you — you can look up your specific HMFA and income limits at huduser.gov/portal/datasets/il.html. The 100% median family income for a 4-person household in the Boston-Cambridge-Quincy HMFA is $160,900 (HUD FY2025, effective 04/01/2025). Limits are updated annually each spring.

💡 Find your town's AMI in 30 seconds: Visit huduser.gov/portal/datasets/il.html → select Massachusetts → select your county → the page shows your HMFA and the full income limit table for your area.

Household Size	Typical Household	100% AMI	120% AMI	135% AMI Limit ✓
1 Person	Single owner-occupant	$112,630	$135,156	$152,051
2 People	Couple, no children	$128,720	$154,464	$173,772
3 People	Couple + 1 child	$144,810	$173,772	$195,494
4 People ★	Standard benchmark household	$160,900	$193,080	$217,215
5 People	Family of 5	$173,772	$208,526	$234,592
6 People	Larger family	$186,644	$223,973	$251,969
7 People	Extended family	$199,516	$239,419	$269,347
8 People	Large extended family	$212,388	$254,866	$286,724

120–135% AMI bracket — BHC special rule: Boston clients in this income band still qualify for BHC programs but must match the city's $50,000 loan 1:1 with personal funds or a bank loan. They don't receive the full no-match subsidy.

📅 HUD updates limits annually each spring. The figures above are HUD FY2025 (effective 04/01/2025). Always verify current limits before quoting eligibility: huduser.gov

Example towns in the Boston-Cambridge-Quincy HMFA

✓ BHC + MassHousing Eligible

City of Boston (only municipality eligible for BHC)

BHC programs require the property to be within Boston city limits. All surrounding towns — including Brookline, which borders Boston — are separate municipalities and do not qualify for BHC.

✓ MassHousing + MHP Only

Newton Needham Wellesley Sudbury Natick Framingham Wayland Weston Lexington Brookline Waltham Watertown Belmont Medfield Sherborn Hopkinton

All of these fall within the Boston-Cambridge-Quincy HMFA — they use the AMI limits shown above. Other Massachusetts towns belong to different HMFAs (Lowell, Worcester, Brockton, Lawrence, Fitchburg-Leominster, etc.) with their own income limits. Look up your HMFA at huduser.gov.

State and city programs that pay for your ADU.

Available throughout all of Massachusetts.

MHP ADU Incentive Program — Free Feasibility Studies

MassHousing ADU Loan Program (ADULP)

If your property is in Boston, additional programs can cover the full cost.

Technical Assistance Grant

ADU Construction Loan — 0% Deferred, Potentially Forgivable

BHC Partner Bank Loan — Gap Financing Above $50K

Boston vs. Statewide.

AMI limits — who qualifies?

Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area

Example towns in the Boston-Cambridge-Quincy HMFA

✓ BHC + MassHousing Eligible

✓ MassHousing + MHP Only

Want to know which programs you qualify for?