Soft second mortgage - A soft second mortgage is literally a second mortgage needed to afford the home. In most cases, the soft second mortgage is forgivable over time and features a 0% interest - hence the term "soft." In most programs, if the buyer who benefited from the soft second decides to sell before a specified period of time, the soft second mortgage amount is taken from the sale proceeds. As an example, a home may be on the market for $200,000. But because the house is located in an approved location and/or the buyer meets program requirements, a soft second may be offered for $50,000 to reduce the buyers first mortgage to $150,000 - for which he/she may qualify for more easily.
The above referenced amounts are
listed as examples only.
To learn about specific program
opportunities, consult the table
below. Be sure to visit the web
site of the entity offering the
program to be sure that all
information is current.
Note that the subsidy/assistance
programs referenced below are
divided into two major
categories: 1. Ongoing
assistance programs and 2.
Foreclosure, Stimulus,
Neighborhood Stabilization
Program (NSP) related programs.
|
Ongoing Assistance
Programs Down payment assistance and soft second mortgages |
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|
Program Name & Description |
Income Eligibility |
Eligible Properties |
Special Restrictions, Stipulations | |
|
Home Atlanta
- The Home
Atlanta program provides
a 30 year mortgage at a
fixed rate not to exceed
6.25% along with a 4%
grant to assist with
closing cost. Eligible
borrowers can also
receive 10% of the
purchase price as an
additional incentive to
assist with down
payment. This program is
offered by Atlanta
Development Authority.
Please their site link
above to ensure all
information presented is
updated. Maximum Purchase Price: $299,475 (Non-Target Area) $366,035 (Target Area) |
For a 1-2 person household income cannot exceed $71,200 or $81,880 for a 3 to 4 person household in order to be eligible for the additional 10% incentive | Newly constructed or existing single family detached homes, attached townhouses & condos located within the incorporated limits of Atlanta | Borrowers purchasing in in Non-target area must be 1st time home buyer; must use ADA approved lender and closing attorney; must have existing property inspected; must attend DA approved home buyer's seminar | |
|
Atlanta Affordable
Homeownership Program (AAHOP)
- AAHOP is a program
designed to provide
mortgage assistance in
the form of a 0%
interest soft second
mortgage in the amount
of 10,000 to assist with
down payment and closing
cost. The lender will
qualify the borrower for
a 30 year fixed rate
mortgage and use AAHOP
as down payment
assistance. The AAHOP
loan has a 5 year term.
This program is offered
by Atlanta Development
Authority. Please their
site link above to
ensure all information
presented is updated. Maximum Soft Second Mortgage Amount: $10,000 |
1 person Household -
$39,850 2 person Household - $45,550 3 person Household - $51,250 4 person Household - $56,950 5 person Household - $61,500 |
Newly constructed or existing single family detached homes, attached townhouses & condos located within the incorporated limits of Atlanta | May not be used in conjunction with American Dream Down payment Initiative, Subsidy Layering Limits do Apply; Must be 1st time homebuyer; Funds must be coupled with fixed rate 1st mortgage; Property must pass HQS inspection; DPA can only over 50% of closing cost; Must attend ADA approved home buying training; Must select one of ADA's Participating Lenders & Closing Attorneys | |
|
Vine City Trust Fund
Homeownership Assistance
Program
- The Vine City/English
Avenue Trust Fund or
“The Trust Fund” is a
program designed to
provide mortgage
assistance in the form
of a 0% interest soft
second mortgage in the
amount of 10% of the
purchase price not to
exceed $15,000 to assist
with down payment and
closing cost. The
lender will qualify the
borrower for a 30 year
fixed rate mortgage and
use “Trust Fund” as down
payment assistance.
This program is offered
by Atlanta Development
Authority. Please their
site link above to
ensure all information
presented is updated. Maximum Soft Second Mortgage Amount: 10% of Sales Price, not to exceed $15,000 |
1 person Household -
$49,800 2 person Household - $57,000 3 person Household - $64,100 4 person Household - $71,200 5 person Household - $76,900 |
Newly constructed or existing single family detached homes, attached townhouses & condos located within the Vine City/English Ave Neighborhoods | No 1st time homebuyer requirement; DPA must be coupled with fixed rate 1st mortgage; Funds can only cover 50% of closing cost; Must attend ADA approved home buying training session; Must select one of ADA's Participating Lenders & Closing Attorneys | |
|
East Side TAD Affordable
Purchase Program
-
This program provides a
50 year 0% interest rate
deferred loan (called a
Buy-Down) which is equal
to the difference
between the market price
and the affordable price
for an eligible unit in
the East Side TAD area.
This program is offered
by Atlanta Development
Authority. Please their
site link above to
ensure all information
presented is updated. |
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|
American Dream Down
payment Initiative (ADDI)
ADDI is a program
designed to provide
mortgage assistance in
the form of a 0%
interest second mortgage
in the amount of $10,000
to assist with down
payment and closing
cost. The lender will
qualify the borrower for
a 30 year fixed rate
mortgage and use ADDI as
down payment assistance |
PROGRAM SUSPENDED UNTIL FURTHER | |||