New Construction Builder Subsidy Program

This program allows the builder to pay up to 6 months of your mortgage payments (including principal, interest, taxes, insurance and mortgage insurance).

How it Works: The builder is allowed to pay up to the first 6 months of your mortgage payments and we (as the lender) can pay the closing costs, but at the expense of a higher rate.  FHA is a better option for this type of transaction, but if FHA is not an option for you or your builder then this is worth considering.

Eligible Loan Programs: Conforming and Jumbo Fixed Rate loans as well as Adjustable Rate mortgages including Interest Only programs.

Minimum Down Payment: 5% (Program cannot be used in conjunction with 3% down or other similar programs).

Underwriting: Loan must receive an “Approve/Eligible” response from either Fannie Mae or Freddie Mac’s Automated Underwriting Systems.

Minimum Credit Score: 660 (but loan must be approved as noted above).

Qualifying Ratios: Qualify at full payment and per Automated Underwriting findings.

Eligible Properties: Single Family primary residences or second homes (no investment properties).

Temporary Buydowns: Not Allowed.

Secondary Financing: Permitted, but must be "institutional."

Escrows: Required on all loans above 80% ltv.

Feel free to contact us at 1-800-414-5285 to see what may be possible.