MHP News

BOSTON, Jan. 10, 2010 --- The SoftSecond Loan Program marked an important milestone in December, passing the 14,000 mark for loans.

Created in 1990 to help low-income and minority first-time buyers realize the dream of homeownership, SoftSecond combines a fixed-rate financing from a participating bank with a one-time state subsidy that keeps monthly payments low. The small state subsidy per loan has leveraged more than $2 billion in private bank mortgage financing.

“MHP is delighted to see so many low and moderate income first-time homebuyers choosing a responsible and sustainable mortgage,” said Gina Govoni, MHP's Homeownership Director.

With the demise of sub-prime mortgages, more and more working families are turning to SoftSecond as a safe alternative. In fiscal year 2009, SoftSecond broke its record for most loans for the third consecutive year with 1,709, eclipsing previous highs of 1,308 in 2008 and 1,049 in 2007. To learn more about the program and to calculate eligibility, go to the SoftSecond calculator.

SoftSecond is also playing a key role in helping communities promote responsible homeownership and stable neighborhoods. Recent analysis of SoftSecond’s loan volume indicates that since 2002, SoftSecond has made 7,284 loans and 3,885 (53 percent) have been made in the 10 cities that have seen the most foreclosure activity - Boston, Brockton, Chelsea, Fitchburg, Lawrence, Lowell, Lynn, New Bedford, Springfield and Worcester. 

Due in part to this success, MHP has created an enhanced version of SoftSecond to encourage the purchase of foreclosed properties. Called Funds for Fixer Uppers, this new program offers increased eligibility and/or rehabilitation grants for the purchase of foreclosed properties in eligible neighborhoods.

For more information, email SoftSecond.