Homebuyer
How SoftSecond works?
The SoftSecond Loan Program's design is 97 percent financing broken into a 77 percent LTV, 30-year fixed-rate first mortgage (which is designed to qualify for sale to Fannie Mae) and a 20 percent LTV fixed-rate second that is held in portfolio by the originating bank.
The second mortgage is "soft" for the first 10 years - payments are interest-only and state funds are used to subsidize up to 75 percent of the interest on the second mortgage to achieve a graduated payment schedule for income-qualified homebuyers below 80 percent of area median income (AMI). The subsidy takes the form of a subordinate lien that is repaid only as a portion of any gain on resale. Borrowers between 80 and 100 percent of AMI are eligible to use the product but without any interest subsidy. For more information, read the SoftSecond term sheet.
MHP works closely with lenders through the origination process and with homeowners post-closing. All lenders submit applications through es2, a web based loan processing system. The eS2 system automatically reviews the application against SoftSecond compliance and underwriting standards. Once loans are approved, lenders can access a full set of closing documents customized for each borrower.
SoftSecond mortgage structure
For more information, email SoftSecond or call 617-330-9944 and ask for any of the following SoftSecond Program associates:
