Holy Cross Among First Worcester Employers to Join State's New Employer-Assisted Mortgage Program

WORCESTER, Mass. – The Commonwealth of Massachusetts announced today that it is teaming up with the College of the Holy Cross and other Worcester colleges and universities to offer an employer-assisted mortgage program designed to help first-time homebuyers afford homes near to where they work.

Holy Cross joins Worcester Polytechnic Institute, UMass Memorial Health Care, Clark University and Assumption College as the first organizations to offer MassWorks, a new statewide program that features the blending of an employer contribution and a dollar-for-dollar state match with traditional fixed-rate mortgage financing from a bank.

Through the new Holy Cross-South Worcester Homeowners Initiative, employees at Holy Cross are eligible to apply for financing for the purchase of one of the units in a condominium complex supported by the College and located near the campus at Hacker and Cambridge streets.  Holy Cross offers participating employees an additional $5,000 beyond the $20,000 maximum provided through MassWorks.

“We are pleased to be teaming up with these employers to help them promote homeownership for their employees and their neighborhoods,” said Tina Brooks, the Patrick Administration’s housing chief. “MassWorks is another example of the Patrick Administration’s comprehensive efforts to assist homeowners and stabilize neighborhoods across the Commonwealth and we hope that more employers will take advantage of this wonderful benefit.”

Created by the Massachusetts Housing Partnership (MHP) and the state Department of Housing and Community Development, MassWorks was unveiled today at a press conference announcing Buy Worcester Now, a multi-faceted effort by the city, state, local businesses and banks to offer a series of mortgage products designed to promote long-term homeownership.  “We are pleased to be able to offer MassWorks as part of our comprehensive effort to promote homeownership in the city,” said Michael V. O’Brien, Worcester’s city manager.

MassWorks is different than many traditional employer-assisted mortgage programs where employer funds are used strictly for down-payment assistance. While down-payment assistance is possible, MassWorks takes an employer contribution and a dollar-for-dollar state match and applies it to a homebuyer’s monthly mortgage payment, spread out over 10 years. This keeps a homebuyer’s payments low.

“With this initiative from MassWorks, more of our employees will realize the benefits of homeownership, including greater stability in their lives and strengthened ties with the community,” said Rev. Michael C. McFarland, S.J., president of Holy Cross.  “We are committed to partnerships like this one that help make Worcester an excellent place to live and learn for all residents.”

MassWorks’ graduated payment system is modeled after MHP’s SoftSecond Loan Program, which has helped nearly 12,000 households purchase their first home, while maintaining industry-low foreclosure rates. SoftSecond has been especially successful in Worcester, making almost 500 loans. MHP is a state, non-profit affordable housing agency funded by banks.

“SoftSecond has proven to be a wonderfully successful, safe and secure mortgage for first-time homebuyers in Worcester,” said Gina Govoni, MHP’s director of the SoftSecond Loan Program. “MassWorks is an effort to capitalize on that success while also giving employers a benefit that will help them recruit and retain employees and make their communities stronger. “MassWorks can be flexible to an employer’s specific goals. The minimum employer contribution per employee is $2,500 and the state will match every dollar an employer puts in up to $5,000. MassWorks will be offered through participating banks and will be administered by MHP.

According to City of Worcester Housing Director Scott Hayman, MassWorks and the Buy Worcester Now initiative have sparked significant interest among major Worcester area employers as well as local banks and credit unions who are interested in offering the SoftSecond Loan Program.  “We are very encouraged by this and poised to bring more employers and lenders on board,” said Hayman.