Definitions for "SUBSIDIZED SECOND MORTGAGE"
An alternative Fannie Mae financing options known as the Community Seconds Mortgage program for low and moderate income households under which Fannie Mae 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, foundations, or nonprofit corporations. Payment on the second mortgage is often deferred and carries no or low interest rates, and part of the debt maybe forgiven incrementally for each year the family remains in the home.
An alternative financing option for low and moderate income household that also includes a down payment and a first mortgage, with funds for the second mortgage provided by city, county, or state housing agencies, foundations, or nonprofit corporations. Payment on the second mortgage is often deferred, carries no or low interest rates, and part of the debt my be forgiven for each year the family remains in the home.
An alternative financing option for low- and moderate-income households, issued by a state or county housing foundation, agency or nonprofit corporation, whereby the buyer can purchase a first mortgage with a subsidized second mortgage behind it; payment