24 C.F.R. § 291.550 What is the second mortgage?
Title 24 - Housing and Urban Development
The second mortgage is a mortgage and note on the home you purchase through the Officer Next Door Sales Program. The amount of the second mortgage is the difference between the list price of the home and the discounted selling price. The second mortgage will have the same term as the owner-occupancy term. The amount of the second mortgage will be reduced, according to a schedule established by HUD, periodically over the owner-occupancy term. If you fail to meet any of the continuing obligations of the OND Sales Program, you will owe HUD the amount due on the second mortgage. At the end of the owner-occupancy term, the amount of the second mortgage will be zero.
Title 24: Housing and Urban Development
PART 291—DISPOSITION OF HUD-ACQUIRED SINGLE FAMILY PROPERTY
Subpart F—Officer Next Door Sales Program
§ 291.550 What is the second mortgage?
