Seller Buydowns for Investment Property

3-2-1 and 2-1 seller buydowns allow homebuyers to have below market interest rates. The seller is essentially prepaying a portion of the buyers mortgage payment to effectively “buy down” the payment for a specific period of time.

With a 2-1 buydown, the interest rate will start off 2 percent lower than the note rate for the first year, then 1 point lower for the next 12 months. The third year and remaining term, the interest rate (and payment) will be the actual note rate.

The 3-2-1 buydown has an interest rate that is 3% lower the first year, 2% lower the second year, 1% lower the third year and the fourth year and remaining term, the buyer pays the note rate.

The cost of the 3-2-1 and 2-1 buydowns is the difference between the note rate payment and the reduced payments.

Typically, these temporary buydowns have only been available for owner occupied properties. I’m pleased to share with you that we have this available for 1-4 unit investment properties too!

A 3-2-1 buydown for a non-owner occupied property can really be a great tool for investors by having a dramatically reduced payment for the first couple years allowing for an improved cash-flow.

Bonus: if the property is refinanced during the buydown period, the homeowner receives the balance of the remaining reserved buydown funds.

If you’re selling a home, offering a buydown can help attract potential buyers.

Please contact me for more information.

Holy cats! My credit card interest rates!

I decided to take my own advice that I’ve been dishing out about credit cards and debts. Today I reviewed my credit card accounts to see what my current interest rates are. I’m pretty lucky to have great credit and that I’m able to pay off my debts monthly. [Read more…]

Another reason to pay off your credit card debts

Yesterday I read an interesting article in the Seattle Times about how (and why) to pay off your credit card debt as soon as possible. The article warns of a slowing economy and future rate hikes by the Fed, which will translate to higher interest rates on credit card debt. In addition to the higher rates, the slower economy may cause some people to have reduced income which will be more challenging with the high interest rate debt.

The article encourages readers to have an emergency savings fund and to focus on paying off credit card debt. [Read more…]

Mortgage rates pushing higher

Mortgage interest rates have been moving higher at a pace not seen in years. If you’ve been a subscriber to The Mortgage Porter, you may recall that I often say mortgage rates move up much faster than they come down…the jump over the last few days has surprised many. [Read more…]

The Fed’s Announcement Yesterday and how it impacts Credit Cards

Yesterday the Fed (FOMC) wrapped up their two day meeting deciding to leave the Fed Funds rate unchanged.  How does this impact you?

[Read more…]

2022 Conforming Loan Limits?

Typically in late November, conforming loan limits are announced for the following year. Loan amounts under the conforming loan limit tend to have lower interest rates than loan amounts that are “high balance conforming” (available in certain counties, such as King, Pierce and Snohomish) or jumbo mortgages. [Read more…]

2020 FHA Loan Limits for homes in Washington State

Here is a complete list of FHA loan limits for all counties in Washington for 2020. The new loan limits go into effect on FHA case numbers issued January 1, 2020 and after. [Read more…]

Breaking News: 2020 Loan Limits Announced from HUD

HUD has released the FHA loan limits for 2020.

Seattle – King County, Tacoma – Pierce County and Everett – Snohomish County all have higher loan limits at $741,750 for a single family home.  Homes located in King, Snohomish and Pierce Counties qualify for a higher loan amount as the counties are considered “high cost”. 

FHA mortgage loans are not limited to first time home buyers and do not have income limits. Loan limits do vary by the county the home is located in. Here is a complete list of 2020 FHA loan limits for in Washington State.

If you’re interested in buying or refinancing a home located anywhere in Washington state, I’m happy to help!