In connection with a first mortgage, the borrower qualifies for a second lien usually from a local housing authority. In all cases my bank has the final credit decision.
scenerio 1: repayment starts immediatley. There could be interest or it could be straight repayment of the pricipal without interst. There is a mortgage for the second in the name of the housing authority.
scenerio 2: repayment starts immediatley. There could be interest or it could be straight repayment of the pricipal without interst. There is a deed of trust for the second in the name of the housing authority.
scenerio 3: no monthly payments. repoayment is only required if the house is sold, the first mortgage is refinanced or the first mortgage is paid in full.
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Compliance Chick