Twenty years ago, a determined group of women of color fought hard to reverse a decades-long pattern of racial discrimination in mortgage lending. These MAHA members successfully negotiated for the SoftSecond loan program, an innovative, affordable mortgage program for low- and moderate-income homebuyers that has changed the lending landscape in Boston and in Massachusetts.

Today, MAHA members have lending agreements with Bank of America, Citizens, Sovereign, and Eastern for lending under the program. The program is administered by the Massachusetts Housing Partnership and has helped over 15,000 homebuyers buy their first home. It has had a remarkable record of low delinquency and foreclosure rates performing better than mortgages to borrowers of all incomes.

How does it work?

You can save thousands with the SoftSecond Loan Program, a low-interest rate, low down payment mortgage for first-time homebuyers. It features:

Low fixed interest rates - MAHA's partner lenders offer SoftSecond rates that are fixed for 30-years and are up to 1/2 percent below market rate.

Low down payment - The minimum down payment for a SoftSecond loan is 3 percent of the purchase price; some of which can even be a gift or grant.

No PMI - Borrowers who qualify for a SoftSecond loan are not required to pay Private Mortgage Insurance - a savings of approximately $125 to $250 per month.

No points - "Points" are fees banks ask buyers to pay when they buy a home. One point equals 1 percent of the loan. Banks do not charge points for SoftSecond loans. Not paying points will save buyers $3000-$7000.

Subsidy available for qualified borrowers - Some SoftSecond buyers qualify for a zero percent interest subsidy payment from MHP. The subsidy payment may cover up to 75 percent of the interest-only payment on the second mortgage.

Does MAHA have agreements with any other lenders?

Yes.In 2010 MAHA and TDBank reached agreement on a new affordable mortgage program called RightStep that has comparable affordability to the SoftSecond program. TD's RightStep product offers low fixed interest rates, 5% downpayments, no PMI, no points, and pre- and post-purchase homebuyer supports.

Do I have to take a class?

Yes. In exchange for offering these great affordable products, banks and public agencies will require that borrowers attend certified pre- and post-purchase classes offered by MAHA and other non-profits. We recommend them too! You will learn a lot, meet other homebuyers going through the process, and will be connecting to a counselor that can help you each step of the way.