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
If you are thinking about buying a house, but you aren’t really sure if it’s…
Here is a breakdown of the maximum seller help amounts by loan program… Program: Conventional…
Your property tax bill usually comes out in late November, or early December. There are…
If you want to acquire rental properties, but you are having issues proving your income…
If you receive money from the State or a County sponsored organization for providing foster…
FHA gift questions come up often. I wanted to give you the rules on FHA…
