The answer to your question is that you apply for the community seconds program at the same time that you apply for your first mortgage but it is usually best to contact the housing commission that is providing the community seconds loan as a first step.
Housing commissions usually have limited funds for homebuyer assistance programs so you want to make sure the community seconds program is available and that you qualify. Additionally, the housing commission may have preferred lenders that they recommend you work with for your first mortgage although it is important that you find a lender that offers the loan program you are looking for, especially if you want to use a low down payment program.
Review How the Community Seconds Mortgage Program Works
While it is important to determine the availability of the community seconds program and confirm your eligibility, you should also contact your mortgage lender at the same time. The lender needs to know the terms of the community seconds loan to assess your ability to qualify for the mortgage. A community seconds program does not do you much good if you cannot qualify for the first mortgage, which represents the majority of your financing to buy a home.
Additionally, not all lenders or mortgage programs permit the use of community seconds loans so it is important to communicate to your lender up-front if you are using one.
A community seconds loan or other down payment assistance program also involves additional documentation and affects how long it takes to process and close your mortgage. In an ideal scenario your lender has experience processing mortgages with a down payment assistance program, which can make the process go more smoothly.
Alternatively, the housing commission or organization that is providing the community seconds loan wants to review the terms of your mortgage to make sure that they are fair and that the mortgage satisfies the program’s requirements. Most community seconds programs only allow borrowers to choose a fixed or adjustable rate mortgage and some programs limit the interest rate or extra fees your are charged. If your first mortgage does not meet the program provider’s guidelines then you may need to work with a different lender.
Please note that you cannot apply for community seconds program until you select the property that you want to purchase but you can contact your housing commission to learn more about program availability and eligibility requirements.
Additionally, you cannot officially apply for a mortgage until you choose a home but you can contact local lenders in the table below to understand what size mortgage you can afford We advise you to contact at least five lenders as program availability varies. Plus, shopping multiple lenders is the best way to save money on your mortgage.
You can also use our free get pre-approved form to get approved and review loan terms from multiple lenders. The form is easy to use, no obligation and getting pre-approved does not affect your credit. Getting pre-approved enables you to determine the loan you qualify for, proactively address potential issues in your loan application and move with greater certainty and speed when your offer to buy a home is accepted.
I have also provided a link to the HUD web site below where you can select your state and click "Learn About Home Ownership" to be directed to information about mortgage assistance programs, including community seconds loans, in your state. The housing commission may also offer additional home buyer assistance programs that may be applicable to you.
HUD State Resources Web Site