This is Going to be the Summer of Adjustable Rate Mortgages and Down Payment Grants and Down Payment Silent seconds with No Payment
This page is devoted to three new adjustables that we have right now. I will devote a separate page to the down payment assistance stuff. We are heros at this tuff
Three excellent examples:
It has been several years since adjustable rate mortgages were in fashion. At least 10. But now we have three great options that are saving customers money and make life easier when it comes to processing
Example #1 – We have a FHA 5/1 ARM right now that is the mid to upper 5’s. FHA is great for lower credit score borrowers and allows for cash out or debt consolidation with a 620 middle credit score or better
The rate for a FHA 30 year fixed is in the lower sixes
Example #2 – We have a great conventional 7/6 ARM with the rate about 3/8’s lower than the conventional 30 year fixed. We can qualify the borrower based on the fixed rate which sometimes might make or break a loan that is tight on the debt ratio
Example #3 – This came up on a DSCR loan which is a loan designed for investors who want to get financing without having to prove income with tax returns. Also the processing is all about the subject property not having to verify cash flow on all of the investors properties. Recently I did a 30 year fixed with interest only payments for 10 years and the rate was in the mid to upper 8’s. A Fannie Mae loan in the same situation would be in the mid to upper 7’s