Many in the real estate industry were concerned about the fallout of a proposed cap to maximum seller contributions from 6 percent to 3 percent for home purchases using FHA-insured loans. But the FHA is weighing another change that may cause less concern, Inman News reports.
FHA Mortgage Home Loan 2-1 Buydowns
2/1 Buy-downs
Buying a home can be stressful and challenging. A buy-down loan program can ease the burden of owning a home for the first two years. A good example is a home buyer who obtains a mortgage loan with an initial rates of 5%. On the 2/1 buydown program the borrower will only pay an interest rate of 3% the first year 4% the second year and 5% at the beginning of the third year. Buydowns are not free of charge and may cost an additional 1-3% of the total loan costs but seller contributions are allowed and may be negotiated as part of the purchase transaction. Overall a great program for someone purchasing a home who want lower monthly mortgage payments the first two years.
Why choose EKV Financial for your FHA 2/1 buydown
- We are a discount lender.
- We shop our competition daily and offer low interest rates and competitive fees.
- Dedicated mortgage loan specialist from beginning to end.