Saturday, April 30, 2011

How are HomePath interest rates determined?

HomePath Mortgage Interest Rates are determined by 3 separate loan factors:

Credit Score: While the minimum credit score required is 660, the higher the credit score the lower the loan costs (or lower interest rate).

Type of property purchased: Condominiums have loan cost additions. Single Family homes do not have price add-ons.

Amount of Down Payment: 3% Down payment is required on owner occupied purchases, and 10% is required on 2nd Homes and Investment purchases. However, the more you can put down the lower the loan  interest rate. The less you put down the higher the rate.
The amount of the down payment plays the greatest role in determining your interest rate.  Next is the credit score.  Lastly is the type of property you are buying.  If you can put down at least 5% instead of 3% you will get a much lower interest rate.   This extra down payment typically will lower your rate about .32% from the 3% down interest rate.

Credit scores are 720+ will recieve a better interest rate than those with credit scores in the 600's.

Have questions, in contract now and need to close fast, looking to be prequalified?  We can help.

Friday, April 29, 2011

Fannie Mae Homepath - Offers 3.5% Credit for Closing cost

HomePath® Buyer Incentive

Fannie Mae is currently offering buyers up to 3.5% in closing cost assistance through June 30, 2011.
The HomePath property buyer must meet the following qualifications to be eligible:
  • Buyers and/or selling agents (the agent representing the buyer) must request the incentive upon submission of initial offer in order to be eligible.
  • The initial offer must be submitted on or after April 11, 2011 and close by June 30, 2011. If an initial offer was made prior to the effective date, the offer is not eligible for the incentive.
  • The sale must close on or before June 30, 2011. No exceptions will be made to this deadline.
  • Only buyers purchasing a HomePath property as their primary residence may receive up to 3.5% in closing cost assistance. Second homes and investment properties are excluded from the incentive.
  • Buyer must sign the Owner Occupant Certification Rider to the Real Estate Purchase Addendum.
  • If a buyer's total closing costs are under 3.5%, the difference will not be available as a credit to the buyer.
For information on your Financing a HomePath loan.  Call us.  We are experts in financing Fannie Mae HomePath properties.