Quick Calculation for Conventional
- Closing Cost is estimate of $3150 PLUS 1% of loan (i.e., if loan amount is $100,000 the total estimated closing cost would be $4150). PLUS
·      Prepaids should be calculated at 2% of sales price (i.e, $100,000 would be $2000)unless the sales price is over $300,000 then use 1.5%.   PLUS
- Down payment is based on loan type and preference (line 3A of contract). Minimum of 3% down (Restrictions apply)
- There is no Upfront MI or Funding Fee. PMI is paid until 20% equity (unless paid upfront as a one time cost)
·      Conforming up to $417,000 (Jumbo over $417,000)
·      Risked based pricing depending on credit score and down payment.
- Typically, the seller is allowed to pay closing cost and prepaids as follows :
*If the buyer puts 0-9.99% down, seller can contribute up to 3% of the sales price toward buyer's CC and prepaids.
*If the buyer puts 10% down or more, the seller can contribute up to 6% of the sales price toward buyer's CC and prepaids.
·      Seller can pay up to 2% of the sales price toward buyer’s closing cost and prepaids on an Investment Property (minimum requirement on investment property is 20% down.
Posted by Roxanne DeBerry on
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