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USDA and VA Loans: Understanding 2/1 Buydowns, Discount Points, and Seller Concessions

December 9th, 2022 by usdaadmin

USDA and VA Loans: Understanding 2/1 Buydowns, Discount Points, and Seller Concessions in Florida, Texas, Tennessee, and Alabama.

Due to the rapidly rising rate environment that we have experienced through the course of this year, we have received a tremendous amount of questions regarding 2/1 Buydowns, Discount Points, and Seller Concessions.

USDA Seller Concessions in Florida, Texas, Tennessee, or Alabama

Thus, as a follow up to the online workshop I hosted this week, I have provided excerpts from the presentation, During the webinar, I reviewed updates on USDA, VA, FHA, and Conventional loan programs along with details on the differences between 2/1 Buydowns, Discount Points, and Seller Concessions.

I hope you find this presentation helpful, but please let our team know if you have any additional questions or if you would like to take advantage of our Free 2nd Opinion Service which is great for both new pre-qualifications and those loans that are currently in progress.

Call/Text: 863-593-2001
SeanS@MPLX.org

USDA and VA Loans: Understanding 2/1 Buydowns, Discount Points, and Seller Concessions

The agenda for this online workshop covered the following topics:

1. Mortgage updates and highlights:

USDA home repair loans in Florida

  • USDA Rural Housing – No Down Payment Loans
  • VA Loans – No Down Payment Loans
    • Credit Flexibility
    • Manufactured Homes (Singlewide and Doublewide)
    • Increased Loan Amounts
    • Expanded Qualifying Ability
  • FHA LoansUSDA and VA approved lender
    • Credit Flexibility
    • 3.5% Down Payment
    • Higher priced mortgage insurance premium costs
    • No area or income limit restrictions
  • Conventional Loans
    • Fannie Mae and Freddie Mac
    • Maximum Financing Options:
      • 97% for Primary Residences
      • 90% for Second Homes
      • 80% for Investment Properties
  • Private Road Guidelines for USDA, FHA, & Freddie Mac:
  • Private Road Guidelines for VA & Fannie Mae:
      • Private Road Maintenance Agreement required.
      • VA does offer the potential of a waiver to the Private Road Maintenance Agreement requirement.

2. What is a 2/1 Buydown?

  • What is a temporary subsidy buydown?
  • Temporary Buydown Agreement
  • What type of transaction could be ineligible for a temporary buydown?
  • Buydown Examples

3. What are Discount Points?

  • Definition
  • Who can pay for discount points?
  • Compare and contrast Discount Points with a Temporary Buydown

maximum va seller concessions in Florida

4. Seller Concessions or Interested Party Contributions

  • Overview and comparison between loan programs
  • Fannie Mae
  • FHA
  • USDA Seller Concessions
  • VA Seller Concessions

 

Thank you again for forwarding and sharing today’s video with any friends, family, co-workers, or clients who are looking to buy, sell, or refinance!

As always, I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!

P.S. – You can download our “USDA Blueprint for Success” by CLICKING HERE.

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