MassHousing has partnered with the city of Brockton, Brockton Housing Partnership, and area lenders to make grant funds available to first-time homebuyers who purchase foreclosed homes in Brockton.
Qualified homebuyers who obtain a MassHousing Mortgage through an approved lender will be eligible for a second loan to assist in rehabilitating the foreclosed property. The second loan will be funded through the Neighborhood Stabilization Program (NSP), which was created in federal economic recovery legislation.
The rehabilitation loan could be forgiven depending on how long the homebuyer lives in the home and the total amount of NSP funds used.
"The city of Brockton, the Brockton Housing Partnership, and a group of MassHousing-approved lenders have been proactively addressing the issue of abandoned and foreclosed homes for some time now and the NSP program is another important tool in helping to reclaim these distressed properties for new homeowners," said MassHousing Executive Director Thomas R. Gleason. "The NSP program will make money available to help homebuyers renovate foreclosed homes that are at risk of becoming blighted."
Homebuyers must be deemed eligible for the NSP program by Building a Better Brockton, the city’s designee. There are no limits to the NSP rehabilitation grants but the cost of renovation must be deemed reasonable by Building a Better Brockton.
"Brockton, with one of the highest foreclosure rates in the state, has a great inventory of properties just waiting for occupants and some tender loving care," said Brockton Mayor Linda M. Balzotti. "This program provides the best of both worlds as well as homeownership opportunities to those trying to fulfill their dreams. It is a win-win situation."
Homes eligible under the program must be foreclosed or abandoned one-, two- or three-family properties. Borrowers must be eligible for a MassHousing Mortgage, meet income and purchase price guidelines, have a minimum 3 percent down payment for one- or two-family homes and 5 percent down payment for three-family homes, and complete a homebuyer education course.
Lenders participating in the NSP program are HarborOne Credit Union, Avon Cooperative Bank, Rockland Trust, Dedham Savings Bank, Crescent Credit Union and North Easton Savings Bank.
"Those of us involved in trying to prevent the blight caused by foreclosures in urban areas sincerely appreciate the combined efforts of the city and MassHousing to make this innovative program available for buyers of foreclosed property in Brockton," said Stephen T. Pike, senior vice president and chief lending officer of North Easton Savings Bank. "Homebuyers purchasing eligible properties may benefit from an increase in value due to the rehabilitation grant while getting a great mortgage loan from MassHousing. This program benefits the city because properties that are or might become blighted are renovated and inhabited by owner-occupants who are committed to Brockton as a place to live. Homebuyers benefit because they will be able to purchase a home for less and use the rehab grant to vastly improve their new home."
