Affordable Seconds & Community Seconds
Low-down-payment conventional does not always mean the buyer must stop at 97% total financing.
Freddie Affordable Seconds
Home Possible can permit eligible Affordable Seconds that raise total financing above the first-mortgage LTV, including up to 105% TLTV in qualifying one-unit scenarios.
Fannie Community Seconds
Fannie uses the Community Seconds framework for eligible affordable-housing subordinate financing paired with a conforming first mortgage.
Program review still matters
The DPA or subordinate program must meet the agency's provider, repayment, lien and documentation requirements. “Forgivable” does not mean “not a second mortgage” when a lien exists.
Official guide baseline
Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide
Affordable-conventional product rules are layered on top of ordinary conventional underwriting. Income limits, occupancy, education, LTV and subordinate financing requirements must all be checked.