MHP News

BOSTON, May 12, 2009 --- In an ongoing effort to keep participating lenders and community organizations up to date with the SoftSecond Loan Program, MHP is announcing today updated income limits for 2009 and changes to its guidelines.

The program's income limits have been updated to reflect new limits established each year by the federal Department of Housing and Urban Affairs (HUD). The guideline changes have been made to clarify existing procedures and to announce new guidelines related to the use of SoftSecond with rehabilitation grants for the purchase of foreclosed properties in areas that are eligible for federal Neighborhood Stabilization Program (NSP) funding.

The guideline changes are:

First-time Homebuyer Requirement:  MHP is specifying that the homeownership history of all adult members of the household must be verified for compliance with the first-time homebuyer requirement.

Education Requirements:  MHP is clarifying that the in accordance with Homeownership Collaborative guidelines, homebuyer education should be an eight hour course, and that one-on-one counseling in lieu of the course should be viewed as an exception.

Credit: MHP is implementing a credit review for all SoftSecond applicants with low credit scores.

Foreclosed properties: MHP has added language that refers to the use of SoftSecond with Neighborhood Stabilization Program funds for subsidy and rehabilitation. This new language can be found in the Section III (Borrower & Property Eligibility Requirements); Section IV (Mortgage Structure and Terms); and Section VII (Purchase Rehab.). Section VII also includes a link to a document that explains the terms and conditions of using SoftSecond in combination with NSP funds when buying a foreclosed property.

To view the new SoftSecond income limits, click here. To view the new program guidelines, click here. For more information, contact MHP at 617-330-9955 or softsecond@mhp.net.