Compare PATH 3.5% forgivable (no monthly payment, 3- or 5-year) with repayable seconds (3.5% or 5%, 10-year amortizing or balloon).
Luminate PATH Forgivable vs Repayable Second Loan | The 2 Mortgage Guys
Compare PATH 3.5% forgivable (no monthly payment, 3- or 5-year) with repayable seconds (3.5% or 5%, 10-year amortizing or balloon).
What Is the Difference Between the 3.5% Forgivable Option and the Repayable Second Loan?
Side-by-Side Comparison
Forgivable — How It Works
Repayable — Two Amortization Choices
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Not Sure Forgivable or Repayable Fits Better?
Forgivable PATH seconds give you 3.5% help with no monthly payment on the aid layer and a 3- or 5-year forgiveness clock. Repayable seconds can go up to 5%, require a monthly payment, and run on a 10-year amortizing or 10-year balloon schedule.
Both structures are second liens behind your PATH FHA or USDA first mortgage — the tradeoff is monthly payment vs maximum assistance.
Both repayable options are fixed-rate second mortgages set by Luminate Bank and disclosed at lock. The only difference is how the payment is calculated.
Repayable rates are typically slightly higher than the 30-year average fixed rate and are confirmed when Ryan and Steve quote your scenario.
Related Luminate Path guides to help you pick the right second lien.
Ryan & Steve will compare monthly payment, cash-to-close, and forgiveness risk against your credit and how long you plan to stay.
Luminate Path programs are subject to borrower qualification, property eligibility, and lender approval. Rates, terms, and program availability may change without notice and are not available in all states. This page is educational — your scenario is underwritten against current guidelines.
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