MHFA has the same title seasoning as FHA. The seller has to have owned the property for at least 90 days with the exception of bank owned. The condition of the property could require the buyer to obtain a purchase and renovation loan but the terms are the same as the regular MHFA loan with the exception of having funds in escrow to repair the property.
I recently sold a townhouse that was a foreclosed property and the buyer got her loan through MassHousing. I think the key to being able to get the loan is the condition of the property. This townhouse was in move-in condition.