Lender friend of mine Roger Gettler with First Community Mortgage provided this update to me and I thought it was worth passing on to you.
The booster second mortgage problem, which provides additional funds to the borrower to cover closing costs, has had a rate increase from 5.75% to 6.00%.This is also a permanent increase so don’t expect the rate on the booster to drop anytime soon. It shouldn’t affect your borrower’s ability to qualify, primarily because the maximum loan amount for the booster is $8000. As an example, one borrower of mine had his payment increase monthly by $1.20.
After the tax credit is gone MFA may be a great option for those seeking downpayment and/or closing cost assistance. Call me to find out more. Carlos Martinez 505-350-8184
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