silent second

silent second

(1) A second mortgage placed on a home, usually in favor of the seller, so that a purchaser can buy the home even without a sufficient down payment.They are called silent because the first lender does not know about the second mortgage and might not have approved the first mortgage if it had known the borrower did not have enough money for a down payment.(2) Shared equity second mortgage programs offered by some state housing assistance authorities.The housing authority loans money to a qualifying moderate-income home purchaser, with repayment due only when the home is sold or refinanced. This is called the silent second, meaning an invisible second mortgage. The housing authority then shares in the profits due to the increase in value. Sometimes there are restrictions requiring sale only to another qualifying moderate-income home buyer.

Silent Second

A second mortgage offered at preferential (subsidized) terms to those who qualify.

For example, a labor union may offer members who are first-time home buyers a silent second to finance closing costs or the down payment. The second might bear no interest and might not be repayable until the first mortgage is repaid or the property is sold.

References in periodicals archive ?
With "no tick" silent second hand and precision quartz movement it's complete with dependable alarm and large light switch.
Letting a silent second cover closing costs and the down payment would place other borrowers in a loan they can afford as long as they live in their home.
The project enables prisoners to tell their stories through music and has become so popular that some tracks are featured on a new album called Distant Voices: Silent Seconds.
The fans screamed as she sang about an abandoned Lebanese village, and fell silent seconds later as she asked: "Who did you leave it for?
When they reached the reliquary most stopped and stood reverently for a few silent seconds.
I used to think those silent seconds before he delivered his lines were a dramatic pause.