Mortgage Grader

Please email your buyer scenarios to Jeff Lazerson by clicking HERE or call him at (949) 322-8640 and let’s see if we can solve your loan approval challenges!

Week of 1/07/17:

Buyer signed an RPA on a $405,000 purchase price with 5 percent down. Borrower floated rate thinking that rates would come back down to lower, where pre-election interest rates. Market kept moving the wrong way. Borrower no longer qualifies and doesn’t have money to buy the rate down.

Very motivated seller kicks in a 3 percent credit (of the sales price) to help buyer to requalify. Deal gets done.

FYI-Maximum credit on a down payment greater than 90 percent loan-to-value (LTV) is 3 percent, six percent credit from 75.01 LTV to 90 percent LTV and nine percent when the LTV is 75 percent or less.

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Jeff Lazerson - Mortgage Columnist since 2011