42 U.S.C. § 12808: Second mortgage assistance for first-time homebuyers

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. counseling before and after purchase of the property; assisting first-time homebuyers in identifying the most suitable and affordable properties; providing homebuyers with financial management assistance; assisting homebuyers in understanding mortgage transactions and home sales contracts; and assisting homebuyers with eliminating any credit problems that may prevent the homebuyers from purchasing the property. the homebuyer assisted is a first-time homebuyer; the property secured by the second mortgage is a single-family residence and is the principal residence of the homebuyer; and 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. 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. The interest rate on the unpaid balance of a loan under this section shall be at least 4 percent. 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. A deferred payment loan assisted with amount 1 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. 1 So in original. Probably should be “amounts”.