What is a soft second mortgage?


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.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: