soft second mortgage

voila, if you're going to pay interest only, then you'll only pay interest, and no principal will be paid. there would be no "adjustment" at the end of a 10 year period.

i don'5 know what you mean by your question about paying back "the savings" if the buyer stayed in the home for 10 years.

If your income exceeds 80% of the median but it's still below 100% of the median, what changes?

If your income exceeds 80% of the median but it's still below 100% of the median, what changes?

guest, it depends on the location. whatever program is run in your area will be quite specific on what can and what cannot take place. if 80% of the median income is the cutoff, then that's that. any number greater than that will obviously disqualify you.

In my area to qualify for the program the income limit is 100% of the median. So I ado qualify. But to qualify for a subsidy the income limit is 80% of the median (I do not qualify). But I do not understand the difference in this case between the Soft Second program and the "subsidy".

you're probably best off contacting the agency that administers this program directly. they can certainly advise you as to the difference betwen the "subsidy" and the program itself.

hi,
i purchased w/soft second in ma in 2006. should i try to refinance out of the this loan with the inter rates being as low as they are? will i have penalty paybacks? i feel that i'm at a disadvantage as i own a fixer upper. if something drastically goes wrong i can't get a home equity loan because i have 2 mortgages on the home. i have 6.25 % interest rate on both and receive a subsidy covering the 2nd mortage. monthlypayment 1st is $1206 and 2nd is $53.46 with monthly assistance of $199. thx, natasha

natasha, those programs are generally far more favorable than what you'd find in refinancing, but you may find otherwise, due to the low rates at the moment. i suggest you contact your second mortgage lender to determine just what it all means to you.

So does the soft second require 12month of clean credit of 24 months?

Hi Kara,

There is no specific credit requirement to qualify for the Soft Second Loan Program. However, lenders would not generally want to offer you the loan unless you have a minimum credit score of 620. Moreover, if there is a foreclosure, short sale, judgment, etc. on your credit you will have difficulty in qualifying for the loan.

To know more about the Soft Second Loan Program, you can refer to the following page:
http://www.massresources.org/pages.cfm?contentID=7&pageID=2&subpages=yes&SecondLeveldynamicID=382&DynamicID=372

I agree, Kara, with what Savior has told you. However, you'll find that the requirements of the loan for which you are applying is probably peculiar to that particular lender. Check with them, or with your primary lender (who may have knowledge) to see if your credit history will be a negative factor.

Is there a web site to check on a daily basis the soft second rate? I hate to keep calling the loan officer for this question. I'm in Ma.
Also if the first 10 yrs is interest only can you pay extra towards the principal?

Thank you.......

Hi Lindav,

I don't think there is any website which can help you check on a daily basis the soft second rate. You should contact your lender in this regard and take his help.

Thanks

You can try masshousing.com, on which you can obtain information about those programs.

is there a minimum requirement for staying with a soft second? I got one in July of 2009 and I am looking to refinance, am i locked into any terms regarding length i have to stay with the loan?