42 USC 12808 - Second mortgage assistance for first-time homebuyers

U.S Code last checked for updates: Nov 22, 2024

§ 12808.

Second mortgage assistance for first-time homebuyers

(a)

In general

(b)

Homeownership counseling

(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)

Eligibility requirements

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)

Payment terms

(1)

Period of deferral

(2)

Interest rate

(3)

Repayment period

(e)

Security

(Pub. L. 101–625, title II, § 258, Nov. 28, 1990, 104 Stat. 4123.)

cite as: 42 USC 12808