Mortgage Navigator • Conventional • Transaction Funds
Community Seconds & subordinate financing
A soft or silent second is still a second mortgage when it creates a lien.
What Community Seconds means
Fannie defines Community Seconds as subordinate financing originated under an eligible affordable-housing program. Fannie purchases the qualifying first mortgage, not the Community Seconds loan itself.
Lender review matters
The first-mortgage lender is responsible for reviewing the assistance program for compliance with Fannie's Community Seconds requirements, including repayment terms, lien position and program provider eligibility.
Fannie vs. Freddie: Freddie uses its own subordinate-financing and affordable-seconds framework. A DPA program approved for one execution should not automatically be assumed eligible for the other.
Official guide baseline
Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide
Program terms, AUS findings and lender overlays control. DPA program eligibility must also be verified with the program administrator.