By Amy Wyeth
Banker & Tradesman Reporter
 
Worcester officials are expected to announce a new initiative Wednesday aimed at encouraging homebuyers to buy in Worcester.

The new program, dubbed “Buy Worcester Now,” is a partnership between the city, 11 local lenders and Worcester-area businesses. It hopes to encourage home-buying in the city by offering state-subsidized down payment assistance and discounted loan rates, legal fees, title insurance and consumer products to buyers.

“This is about being proactive and going after a challenge. We hope to reverse the effects of the foreclosures,” said City Manager Michael V. O’Brien.

Worcester homes are foreclosed upon at a rate of about 50 per month, according to city officials.

Some local employers will also offer down-payment assistance for their employees plus a state match through MassWorks, a Massachusetts Housing Partnership product developed earlier this year.

The program is not connected with Buy Brockton, a recent initiative of that city in which eight lenders pooled $35 million to offer loans to buyers of foreclosed-upon homes. Buy Worcester Now loans and discounts are for buyers of any home in the city.

Banks and credit unions participating in Buy Worcester Now have put up approximately $60 million, and buyers must have credit scores of 660 or greater and incomes of less than $96,000 for a family of two.  Loans are available for the purchase of any condo or home of up to four units costing $417,000 or less.

Participating lenders include: Bank of America, Bay State Savings Bank, Commerce Bank & Trust Co., Commonwealth National Bank, Digital Federal Credit Union, Flagship Bank & Trust, Southbridge Savings Bank, Sovereign Bank, UniBank, Webster Five Savings Bank and Worcester Credit Union.