Question:

What is a soft second mortgage?

Answer:

It is good to know what a soft second mortgage is if you are a low to average income first time homeowner. A soft second mortgage will be usd with a publicly sponsored program allowing homeownership with relaxed mortgage terms to lower income citizens.

For example, with a soft second mortgage program you may get a first mortgage of up to 80% that you will be paying principal and interest on, and a soft second mortgage you will receive assistance paying. The soft second mortgage may be fully waived after 5, 10 or 15 years of home occupancy; or you will be partially assisted with the second mortgage payments for limited time before you start paying principal and interest.

To qualify for a soft second mortgage, your income normally will have to be within the particular requirements of the program.

The idea of a soft second mortgage is to make homeownership really affordable to low to average income Americans. A soft second will carry interest of 2 or more points below market rates and no buying points will be necessary.

A soft second mortgage can save a household over $30,000 over the lifetime of the loan.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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