Finance
A Massachusetts first-time homebuyer uses a 'down payment assistance' loan from a non-profit. This loan is often structured as a:
ABalloon payment loan due after 30 years
BSilent second mortgage with deferred or forgivable payments✓ Correct
CAdjustable rate mortgage tied to a market index
DGrant that must be repaid within 5 years
Explanation
Down payment assistance in Massachusetts (including MassHousing and DHCD programs) is often structured as a silent second mortgage with deferred payments or forgiveness provisions after a specified period of occupancy. This reduces the upfront cash burden for first-time buyers.
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