42 U.S.C. § 12808
Sections in this chapter
- § 12701
- § 12702
- § 12703
- § 12704
- § 12705a
- § 12705b
- § 12705
- § 12705c
- § 12705d
- § 12706
- § 12707
- § 12708
- § 12709
- § 12710
- § 12711
- § 12712
- § 12713
- § 12714
- § 12721
- § 12722
- § 12723
- § 12724
- § 12725
- § 12741
- § 12742
- § 12743
- § 12744
- § 12745
- § 12746
- § 12747
- § 12748
- § 12749
- § 12750
- § 12751
- § 12752
- § 12753
- § 12754
- § 12755
- § 12756
- § 12771
- § 12772
- § 12773
- § 12774
- § 12781
- § 12782
- § 12783
- § 12784
- § 12785
- § 12801
- § 12802
- § 12803
- § 12804
- § 12805
- § 12806
- § 12807
- § 12808
- § 12809
- § 12810
- § 12821
- § 12831
- § 12832
- § 12833
- § 12834
- § 12835
- § 12836
- § 12837
- § 12838
- § 12839
- § 12840
- § 12851
- § 12852
- § 12853
- § 12854
- § 12855
- § 12856
- § 12857
- § 12858
- § 12859
- § 12870
- § 12871
- § 12872
- § 12873
- § 12874
- § 12875
- § 12876
- § 12877
- § 12878
- § 12879
- § 12880
- § 12891
- § 12892
- § 12893
- § 12894
- § 12895
- § 12896
- § 12897
- § 12898
- § 12898a
- § 12899i
§ 12808. Second mortgage assistance for first-time homebuyers
- (a) The Secretary shall make available a model program under which units of general local government provide loans (secured by second mortgages) with deferred payment of interest and principal to first-time homebuyers.
- (b) The program under this section shall provide for homeownership counseling to first-time homebuyers assisted, which shall include—
- (1) counseling before and after purchase of the property;
- (2) assisting first-time homebuyers in identifying the most suitable and affordable properties;
- (3) providing homebuyers with financial management assistance;
- (4) assisting homebuyers in understanding mortgage transactions and home sales contracts; and
- (5) assisting homebuyers with eliminating any credit problems that may prevent the homebuyers from purchasing the property.
- (c) Deferred payment loans secured by second mortgages may be provided under the model program under this section if—
- (1) the homebuyer assisted is a first-time homebuyer;
- (2) the property secured by the second mortgage is a single-family residence and is the principal residence of the homebuyer; and
- (3) the principal obligation of the deferred payment loan secured by a second mortgage does not exceed 30 percent of the acquisition price of the residence to the homebuyer.
- (d)
- (1) The payment of any principal and interest on a loan under this section shall be deferred for not less than the 5-year period beginning on the date of the acquisition of the residence by the homebuyer.
- (2) The interest rate on the unpaid balance of a loan under this section shall be at least 4 percent.
- (3) A deferred payment loan secured by a second mortgage shall be repayable over the 15-year period beginning at the end of the deferral period.
- (e) A deferred payment loan assisted with amount 1 1 So in original. Probably should be “amounts”. provided under a grant under this section shall be secured by a lien on the property involved, which lien shall be subordinate to the first mortgage on the property.
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