Lenders continue to develop creative ways to make it more affordable to buy a home in our current market. Casey Taylor, vice president with PrimeWest Mortgage, reached out with exciting news about a new community lending program. A major private investment firm is behind the $30 billion dollar program. Lower rate conventional loans are now available for urban area across the United States. The map shows most of the San Antonio metro area qualifies.
Lower Fixed-Rate Conventional Loan
The program offers location-based incentives, and if the property is in a targeted area, the applicant is eligible for a lower interest rate. The program is for conventional 30 or 15-year notes, loans with a minimum of three to five percent down payment. Applicants can apply more to their down payment if they prefer.
“The appealing aspect of this loan program is that it’s not a temporary rate buy down, or additional discount points charged to buy down the interest rate.” Casey said. “This is a fixed rate over the course of the loan.”
One Point Makes a Difference
If you’re thinking about financing a home with a conventional loan, this community lending program could be the incentive to act now. Here are the numbers financing a $375,000 home under the program: with a 3% down payment at 5.875% interest rate, the projected total monthly mortgage payment is $3,180 a month. (This includes estimated property taxes, homeowners’ insurance, and monthly mortgage insurance in the total payment, for a primary home purchase using a 720 FICO score.) In comparison, a normal conventional loan, with the current 6.875% interest rate, delivers a projected $3,418 a monthly payment. (This includes estimated property taxes, homeowners’ insurance, and monthly mortgage insurance in the total payment, for a primary home purchase using a 720 FICO score.) Using this example, the difference is $238 per month, or about $2,850 per year in savings, with the lower interest rate.
Act Now
The peak home buying season is upon us. If you’re a conventional home buyer, this community lending program is something to seriously consider. Lower interest rates equal more affordability and buying power.
This is a nationwide lending program and once the $30 billion pool is gone, the program may not be extended.
To learn more, contact Casey Taylor at casey@primewestmortgage.com or, call at 972-935-9200. Casey will confirm if a home or area you’re interested in purchasing is eligible for the program. Please reach out to me for any questions with your home buying search.
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