How SoftSecond Works

SoftSecond works by splitting a conventional home mortgage in two. Buyers are qualified based on the first mortgage, which is typically 77 percent of the purchase price; the second mortgage which is always 20 percent of the purchase price, and a down payment of at least three percent. And, unlike a conventional mortgage, private mortgage insurance is not required.

The following graphic illustrates how SoftSecond works:

Sample SoftSecond mortgage payment schedule