Subsidized Second Mortgage – David Reecher
A creative financing option known as the Community Second® mortgage for low- and moderate-income households.
An investor purchases a first mortgage that has a subsidized second mortgage behind it. The second mortgage may be issued by a state, county, or local housing agency, foundation, or non-profit corporation. Payment on the second mortgage is often deferred and carries a very low interest rate or no interest rate. Part of the debt may be forgiven incrementally for each year the buyer remains in the home.