What is the repayment structure often associated with SHIP assistance defined as Subordinate Financing?

Answer

A deferred second mortgage or a silent second.

When SHIP assistance is structured as Subordinate Financing, it commonly takes the form of a deferred second mortgage, frequently termed a 'silent second.' This structure is advantageous because it typically does not require the borrower to make scheduled monthly payments on the SHIP aid during the term of the primary mortgage. However, this financial arrangement creates an ongoing obligation; the principal amount becomes due and payable to the local housing agency either upon the sale of the property, if the owner decides to refinance the primary loan, or upon the transfer of ownership. The specific terms regarding forgiveness or repayment timing are critical components of the overall borrower agreement.

What is the repayment structure often associated with SHIP assistance defined as Subordinate Financing?

Related Questions

What unique source provides funding for the State Housing Initiatives Partnership Program (SHIP)?Which entity establishes the final income limits for a specific SHIP assistance offering?When assessing income for SHIP qualification, what specific total must fall at or below the local AMI percentage?What is the typical definition for a 'first-time homebuyer' according to most SHIP administering agencies?What property usage is strictly prohibited when utilizing SHIP assistance funds?What is the repayment structure often associated with SHIP assistance defined as Subordinate Financing?Where must a prospective buyer in Florida first identify their SHIP application contact point?What must applicants complete, often mandated *before* final application approval for SHIP funding?What is the consequence if a borrower moves out and rents their property before the silent second lien is fully satisfied or forgiven?Which other program shares the acronym SHIP, causing potential confusion with the housing initiative?
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