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

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.

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 2^nd 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 Rural Housing – No Down Payment Loans
  • USDA Eligible Areas
  • USDA Income Limits
  • USDA Repair Loans for those repairs to be completed after closing
  • USDA Construction Loans for Manufactured Homes (Singlewide and Doublewide)
• VA Loans – No Down Payment Loans
  • Credit Flexibility
  • Manufactured Homes (Singlewide and Doublewide)
  • Increased Loan Amounts
  • Expanded Qualifying Ability
• FHA Loans
  • 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 Maintenance Agreement not required.
  • Other conditions will be required such as evidence of permanently recorded easements for ingress and egresss.
• 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

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.