If you cannot afford a down payment or closing costs, we have good news for you, in case you were not aware! There is a loan called the Community Seconds loan that is available, if you qualify, that will help you finance your down payment, closing costs, and in some cases, home renovations. How amazing is this? This means you do not have to pay for anything upfront! Again, this is only if you qualify. Basically, it is a second home loan. This loan would be a whole lot smaller than the loan for your entire house.
When it comes to making payments on a Community Seconds mortgage, there are quite a few different ways and options you have to do so. One option is to make monthly fixed payments, right alongside your regular loan. You would make these payments until this second loan is fully repaid. Another option is to defer payment for your second loan for a certain period of time. Once that period of time is over, you would make fixed monthly payments until the loan is completely repaid. A third option is available where you do not have to make any payments at all! However, if you decide to sell the home or refinance, that is when you would have to pay the loan back. There is a fourth option that is sometimes offered where you do not have to repay the loan if you stay in the home for a certain amount of years. As with everything, the terms and situations are different depending on the repayment plan discussed upon qualifying for the Community Seconds loan. They are different depending on the location and program.
Fannie Mae is where this type of loan is offered through. It is a conventional loan that they have set up to work in conjunction with an adjustable-rate or fixed-rate conventional mortgage. If this type of loan is something you are interested in, we suggest you look into it further. Not many people are aware of it and it could greatly benefit someone who might need some extra assistance.