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I need some advice from someone who knows more about this mortgage stuff than me. I'm a first time homebuyer and have been checking around on different mortgage options and found one that seems to be the best deal. It's a 30 yr fixed at 6% with 100% financing and a 1% origination fee. It's a NC Bond program, which you can check out at this website if you want: www.nchfa.com. Just click on the bottom right corner where it says "For Your First Home."
Anyway, to my question: I've been reading some about mortages and everything says to ask if there is a Yield Spread Premium associated with the loan. So...I asked the mortgage lady with whom I"ve been dealing about this and she reponded by telling me she didn't know why anyone would say to ask about the YSP b/c it doesn't affect my loan....but she never really answered my question. Does anyone know anything about this NC Bond program loan or could you tell me if it appears to be a good deal? Any advice at all would be greatly appreciated!! Thanks so much!!
Also from the response BaileyBlue got from her loan officer, it leads me to believe that there is income on the backside. Her response was correct in that it does not affect the loan (same rate). If there was not, the loan officer's response would have probably been..."there is no YSP on these types of loans".
I was just at the NC website and it is basically the same exact thing we do here. This is because these MRB (mortgage revenue bond) programs fall under the FEDERAL tax code. While I can't say for sure whether the NC program pays anything on the back I can say most do!
Just so other readers know...it looks like the standard for the state of NC is $53k on the income limit and $190k on the acquisition cost. If you fall under that you should try to qualify for the program.
You say "I highly doubt if there is any YSP on this mortgage." That tells me you have not done ANY. Otherwise you would know exactly what they pay. You also say This is simply dead wrong including NC! The orignal poster has the NC rate correct at 6.0% per the website. No originator can charge a higher rate for the program. The rate is the rate.
It even has the same name as our program MHFA=NCHFA.
You ducked the question (not the 1st time)...have you ever closed a NCHFA loan? Does your company fund your own loans and are you signed up as a NCHFA lender?
sorry I learned that questions should be followed by a question mark.
Your question was if we fund our own loans. If you knew we were a broker, then why ask the obvious question?
I have closed as I have mentioned before. I can fund loans from the lenders I choose as I have been doing for the last year.
I didnt know I was under interrogation.
Quote:
Originally Posted by TimtheGuy
It even has the same name as our program MHFA=NCHFA.
You ducked the question (not the 1st time)...have you ever closed a NCHFA loan? Does your company fund your own loans and are you signed up as a NCHFA lender?
It is true these bond programs don't react to pricing shifts like the regular market (slower)
5.5% today, but not for a $0 down.
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