§12808 Second mortgage assistance for first-time homebuyers

Summary

The Secretary must offer a model program that local governments can use to give second‑mortgage loans to first‑time homebuyers. These loans let payments be delayed for at least a 5‑year period after the buyer buys the home. Interest on the unpaid balance must be at least 4 percent. The loan amount cannot be more than 30 percent of the home's purchase price. The home must be a single‑family house and the buyer’s main home. The loan is secured by a lien on the property that is behind the first mortgage. After the deferral, the loan is paid back over 15 years. The program must also provide homeownership counseling. That includes help before and after buying, finding affordable homes, managing money, understanding mortgages and sale contracts, and fixing credit problems that could stop the purchase.