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savior70 · Posted: Fri Nov 20, 2009 6:28 am Post subject:

Hi,

If the buyer is paying interest only on the second loan for 10 years, it will not reduce the principal balance on the loan. He has been paying only the interest, not the principal. But in case he had made some extra payments towards the mortgage besides paying the interest, part of the principal balance will be reduced.

gmakerley · Posted: Sat Nov 21, 2009 12:10 pm Post subject:

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.

Guest

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

Guest

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

gmakerley · Posted: Mon Jan 25, 2010 9:21 am Post subject:

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.

Guest

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".

gmakerley · Posted: Mon Jan 25, 2010 11:17 am Post subject:

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.

Guest

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

gmakerley · Posted: Tue Feb 16, 2010 9:03 am Post subject:

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.

Guest

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

savior70 · Posted: Wed Apr 21, 2010 3:24 am Post subject:

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=y es&SecondLeveldynamicID=382&DynamicID=372

gmakerley · Posted: Wed Apr 21, 2010 9:30 am Post subject:

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.

Guest

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.......

jameshogg · Posted: Tue Oct 05, 2010 10:55 pm Post subject:

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

gmakerley · Posted: Thu Oct 07, 2010 1:20 pm Post subject:

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

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