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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