Deferred second loan
Definition
A deferred second loan is a subordinate loan that postpones repayment. It is not automatic forgiveness, not ordinary servicing deferment, and not every down-payment-assistance structure.
In plain English
Some assistance programs place a second lien and do not collect monthly payments at first. Repayment may wait until sale, refinance, or another stated event. A forgivable loan can disappear over time if conditions are met. Servicing deferment pauses payments on an existing loan after hardship. Those are different ideas.
Technical definition
Fannie Mae Community Seconds eligibility is PRIMARY. It lists deferred-payment subordinate loans as a structure distinct from fully amortizing or forgiven debt.
Why it matters
Shoppers hear silent second, DPA, and deferment as if they were one product. The repayment timing is the grain of this page.
Commonly confused with
Related terms
Sources reviewed
Community Seconds Loan Eligibility
ObservedSeptember 7, 2026
Important note
A deferred second loan postpones repayment. It is not automatic loan forgiveness, not ordinary servicing deferment, and not every down-payment-assistance structure. Terms vary by program.