With the inventory shrinking a bit, we thought a quick email reminding you of “What’s Working” in this market with regards to financing:
- Up to 90% loan-to-value for a primary residence
- Max price of $890,000
- No Monthly mortgage Insurance
- 5 and 7 year ARM rates very low right now. In the low 3s.
- If your client is considering a remodel, can get cash out of up to $200,000 an avoid a construction loan.
Does the House need some Love?
- 203K rehab – max loan amount is FHA loan limit
- Streamline rehab to about $32,000 of non-structural repairs
- Work is done after closing
- Great loan for fixing kitchens, baths, flooring
- Did the home get abandon prior to completion?
- We have an investor that will provide construction financing to complete the home
- We would provide ‘take out’ financing after construction is completed.
First Time Home Buyers
- Remember FHA can be combined with down payment assistance to make it Zero Down
- Minimum credit scores 620
- Fannie Mae Homes offering the Home Path program
- Minimum 3% down. No mortgage insurance (but higher interest rates on the higher Loan-to-values). This is a bit more difficult for buyer to get approval on a high LTV.
- We have a conventional loan with 5% down payment requirement, with 3% coming from buyer’s own funds and the additional 2% can be from a gift. This is a good solution for a condo that’s not FHA approved.