I’m quoting these numbers based on the assumption the borrower has good credit.
I’m also quoting a par rate – meaning the lowest rate you can get before you start paying discount points.
Conventional Rates: Assuming loan to value ratio of 95% (5% down), the rate would be around 6.75%.
Government Rates (FHA): Assume 3.5% down, the rate would be around 6.125%.
Alternate Doc – Bank Statements for income: Assume 20% down, the rate would be around 7.375%.
It’s interesting the Alt Doc Bank Statement rate is not that much higher than a conventional loan. However, there is more down payment needed.
You can see how much lower the government loan program rates are right now.
Yes, these rates are higher than they were a couple of years ago, but this is where the market is right now. So, if you want to buy a house, dive in and buy a house. You will pay a little bit higher rate for now, and you can always refinance whe the rates drop back down.
That’s it for today!
Thanks for reading!
Brett
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