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Typically funded by Government Agencies from the federal level town to the county or city level. These are typically 2nd Trust Deed loans used for your down payment and/or closing costs. The loans are silent in that they do not require any monthly payments. Rather than paying any interest on the loan, you will share any increase in equity you earn over time with the issuing agency. Upon selling your home, you will have to pay back the silent loan and a portion of the increased equity, if any. With most of these programs, the longer you stay in the home, the less equity will need to share and after many years (usually 15 years) you may not have to share any equity at all, simply pay back the original loan. |
