How much will HomeSafe Second cost?

HomeSafe Second has some costs like other mortgages. Borrowers must pay standard home costs (like property taxes, homeowners insurance, HOA fees) plus their first mortgage.

Loan Costs Include:

• Counseling Fee: $150–$200 (paid directly by borrowers). Before applying, borrowers must meet with an independent counselor approved by HUD. All borrowers and anyone named on the home title must join this meeting and sign a certificate afterward.
• Home Appraisal: Around $800 (paid directly by borrowers). A licensed appraiser approved by the lender will assess the home’s value.
• Loan Origination Fee: Varies by state, but capped at $3,995. This covers the costs of originating the loan and can be included in the loan amount.
• Other Closing Costs. May include credit reports, flood checks, title fees, escrow fees, and recording fees. These can usually be included in the loan amount.

Interest

HomeSafe Second does not require monthly payments of principal and interest.¹ Interest accrues monthly and is added to the total loan balance. Borrowers repay the principal balance and all accrued interest when the loan becomes due.

^1. The borrower must meet all loan obligations, including meeting all loan obligations under the first lien mortgage, living in the property as the principal residence and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid.