Homebuyer FAQs

Q. Where can I find a schedule of first-time homebuyer education classes?: Please refer to the Citizens Housing and Planning Association (CHAPA) website for information and schedules of upcoming classes. Use the calendar format to find a convenient class near you. Please call the provider listed on the calendar to sign up. Class times and prices will vary.
Q. When do homebuyer education certificates expire?: MHP defers to the issuing homebuyer education provider. Please contact the proper provider and ask them how long their First Time Homebuyer Education Certificates are valid.
Q. Do all adults in the household have to take the first-time homebuyer education class?: MHP requires the borrowers who will be on the Deed, Mortgage and Note to take an approved first-time homebuyer education class.
Q. Now that I've completed my first-time homebuyer education class, how do I get pre-approved for a SoftSecond Loan?: Borrowers will want to contact a few of our participating lenders in order to be pre-qualified. Click here to view a list of participating lenders. When speaking with a lender please mention that you are specifically interested in MHP's SoftSecond Loan Program to make sure you will speak to a loan officer familiar with the Softsecond program.
Q. How do I find the current SoftSecond interest rate?: The SoftSecond interest rate varies by participating lender. MHP recommends that homebuyers contact several different lenders in the pre-approval process to determine the participating lender's SoftSecond interest rate.
Q. What types of properties can I buy with SoftSecond?: SoftSecond allows borrowers to purchase condos, single-family, two-family, and three-family homes. Please speak with your lender about the eligibility of your specific property.
Q. What is MHP subsidy and how does it work?: MHP subsidy represents public funds that are applied to some SoftSecond Loans in order to make the home more affordable. MHP subsidy will pay the difference between the borrower's monthly contribution to the second mortgage and the full cost of the interest only payment. The funds are applied as an interest subsidy, helping to partially pay the interest obligation on the borrower's Second Mortgage over the first nine years of the loan. Use our SoftSecond Calculator to find out if you qualify for MHP Subsidy.
Q. How do I know if I fall within the SoftSecond program's income limit for the community in which I'm looking to buy?: Please refer to our income limits. Look for the county and community in which you are looking to purchase. When looking up income limits make sure to account for every family member who will be residing in the household whether or not they are on the loan.
Q. What are the SoftSecond program's credit score requirements?: The SoftSecond Loan Program's credit minimum for condos and single-family properties is 660. For two and three-family properties the minimum score is 680.
Q. What is the minimum down payment requirement for the SoftSecond Loan?: The minimum down payment requirement is 3 percent and 1.5 percent must be from the borrower's own seasoned funds. The remaining 1.5 percent can be a gift or from a municipal down payment assistance program.
Q. How can I inquire about the status of my SoftSecond loan application?: Please contact your mortgage loan officer for questions or issues regarding your SoftSecond Loan application.
Q. Does MHP offer down payment and/or closing cost assistance?: MHP does not offer any types of down payment or closing cost assistance. However, this does not mean that you cannot use other types of assistance with your SoftSecond Loan. You should contact the community in which you are looking to purchase to find information about down payment and closing cost assistance. Some communities may offer assistance directly while others do not. Another option would be to contact your local or regional housing agency as they will have information regarding these assistance programs.
Q. Can I use my Section 8 assistance to help purchase a home?: MHP does offer qualified Section 8 borrowers an opportunity to purchase their first home through the SoftSecond Section 8 for Homeownership Program. Participants must meet all standard program requirements and guidelines. Additionally, buyers must work with a Section 8 provider that has an MHP approved administration plan. The buyer must meet all terms and conditions of the provider's plan.
Q. Can I use SoftSecond for an affordable property that I won through my town's housing lottery?: SoftSecond can be used to purchase market-rate properties as well as affordable units. In order to determine if your prospective property will qualify for the SoftSecond Program, MHP recommends that you speak with a participating lender.