MHP News

FITCHBURG/LEOMINSTER, April 5, 2010 --- Homebuyers who are thinking about buying in Fitchburg or Leominster now have the opportunity to increase their purchasing power thanks to Funds for Fixer Uppers, a new program that offers incentives and rehabilitation funds for the purchase of foreclosed properties in eligible neighborhoods.

Offered by the Massachusetts Housing Partnership and the cities of Fitchburg and Leominster, Funds for Fixer Uppers is an enhanced version of the state’s SoftSecond Loan Program.  Started in 1991 as a pilot program in Boston, SoftSecond was gradually taken statewide and is now available in all Massachusetts communities.

“The City of Leominster is always looking for new mechanisms to revitalize the areas hardest hit by the recent economic downturn.  This partnership with MHP will be an effective tool to help achieve our goal,” said Leominster’s Assistant Director of Planning and Development, Andy Taylor.

“The city is pleased to have yet another option for prospective homebuyers seeking to purchase and rehabilitate their new home,” said Larry Casassa, Deputy Director of the Fitchburg Community Development department.  “Fitchburg has an excellent inventory of affordable housing that, with a little TLC, could become dream homes for prospective homebuyers.”

Funds for Fixer Uppers waives SoftSecond's first-time homebuyer requirement and raises the household income limit to under 120 percent of the area median income if the property is located in an eligible neighborhood in one of 39 communities that can receive federal Neighborhood Stabilization Program (NSP) funding.  The program is available for homebuyers purchasing foreclosed condominiums, single-family, two-family, and three-family homes.

“This is one of the missing links that Fitchburg and Leominster need to encourage buyers to come to these cities,” said Marc Dohan, Executive Director of the Twin Cities Community Development Corporation.

In Leominster and Fitchburg, and 15 other designated communities, properties in certain neighborhoods may also qualify for NSP rehabilitation grants of $20,000 per unit, up to a maximum of $40,000 per property.

“MHP is excited to team up with the cities of Fitchburg and Leominster to encourage homebuyers to purchase and rehabilitate foreclosed properties,” said MHP’s Homeownership Director, Gina Govoni.

Since 1991, SoftSecond has helped over 14,000 families buy their first home and has leveraged over $2 billion in private mortgage financing, while maintaining delinquency and foreclosure rates that are at or below those of all prime mortgages made in Massachusetts.

For more information about Funds for Fixer Uppers, visit www.mhp.net/homeownership/foreclosed_properties.php