hey prescott.

Program type · 2 of 5

Deferred second mortgages
no payment until you sell.

A deferred second mortgage is a soft second: a state or local agency lends you the down-payment money behind your first mortgage, often at 0% interest. You don't make a payment on it. The balance is due only when you sell, refinance, or pay off the first mortgage.

See if I qualifyAll program types →

How it works.

  1. Step 01

    You close with two loans.

    Your lender originates the first mortgage; the housing agency originates a second mortgage for the DPA amount. Both close at the same table.

  2. Step 02

    You make one payment.

    You only pay the first mortgage every month. The second sits in the background accruing zero interest in most cases.

  3. Step 03

    You repay at exit.

    When you sell, refi, or pay off the first, the second is due. If property values have risen, you simply pay it from the equity.

What you need.

  • Pair with a participating first mortgage (FHA / VA / USDA / conventional)
  • Minimum credit score (most agencies sit between 620 and 660)
  • Income limits by county
  • Owner-occupied primary residence

Real programs.

  • CalHFA MyHome

    CA

    Up to $25K covering DP + closing, due at sale or refi.

  • Georgia Dream

    GA

    0% deferred second covering down payment + closing, up to $10K.

  • Keystone Advantage

    PA

    Up to $8K from PHFA, paired with a Keystone first mortgage.

Questions people ask.

Do I have to make a monthly payment on the second?
On most state and city soft seconds, no. A handful are amortizing — you'd see that in the program details. Hey Prescott surfaces both in your match list.
What if my home value goes down by the time I sell?
The second is still owed in full. In rare cases, agencies will negotiate a subordination at refinance or a partial release at sale. Always read the loan note.
Can I refinance later and roll the second into a new first?
Sometimes. The agency has to subordinate the second under the new first — this is routine for some programs and case-by-case for others.

See which second mortgages you qualify for.

60 seconds. No SSN, no credit pull, no lender pressure.

Take the quiz