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The Buyers Bonus Mortgage Program

Buyers' Bonus Mortgage Program - Program Highlights - . The Buyers' Bonus Mortgage Program feature allows seller/builder-paid principal and interest payments, for up to the first six (6) months, on one (1) unit primary residences that are: purchase-money transactions only existing p

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The Buyers Bonus Mortgage Program

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    1. The Buyers’ Bonus Mortgage Program

    2. Buyers’ Bonus Mortgage Program - Program Highlights - The Buyers’ Bonus Mortgage Program feature allows seller/builder-paid principal and interest payments, for up to the first six (6) months, on one (1) unit primary residences that are: purchase-money transactions only existing properties (previously occupied), or newly constructed homes (not previously occupied) Excellent option for Builders to sell slower-moving inventory!

    3. Buyers’ Bonus Mortgage Program - Program Highlights - The amount of the principal and interest payments paid by the seller/builder must be for the full amount of the borrower’s principal and interest monthly payment. Partial payments and payments in half-month increments, such as, 1.5 months, 2.5 months and 3.5 months, are not allowed.

    4. Buyers’ Bonus Mortgage Program - Program Highlights - The borrower is responsible for paying the tax and insurance portion of the total monthly mortgage payment. Example: Principal and Interest Payment: $1,580.17 Tax $250.00* Insurance $100.00* Total Monthly Payment $1,930.17 *Borrower will be billed for this portion of the total monthly mortgage payment, or $350.00, in this case. Escrow waivers are not permitted. No exceptions.

    5. Buyers’ Bonus Mortgage Program - Program Highlights - Eligible Occupancy Types

    6. Fully Amortizing Agency Fixed Rate (10 to 40 year) mortgages Fully Amortizing Agency 3/1, 5/1 and 7/1 ARMs (10 to 30 year) mortgages Agency Seven (7) Year Balloons (30 Year Amortization) Fully Amortizing Flexible 97 Fixed Rate, 5/1 and 7/1 ARMs (15 or 30 Year) mortgages, and Fully Amortizing Flexible 100 Fixed Rate, 5/1 and 7/1 ARMs (15 or 30 Year) mortgages Note: Interest-Only transactions are NOT eligible with this program

    8. Buyers’ Bonus Mortgage Program - Program Highlights - Eligible Loan Products (cont’d) Fully Amortizing Fannie Mae MyCommunity MortgageTM Programs: MyCommunity 97 (15-30 year) Fixed Rate and 7/1 ARMs MyCommunity 100 (15-30 year) Fixed Rate and 7/1 ARMs MyCommunity 100 Plus (15-30 year) Fixed Rate and 7/1 ARMs Note: Interest-Only and 40 year terms are NOT eligible under the Buyers’ Bonus Loan Program

    9. Buyers’ Bonus Mortgage Program - Program Highlights - Eligible Loan Products (cont’d) Fully Amortizing Teacher, Healthcare Worker & Safety First (15-30 year terms) Teacher, Healthcare Worker & Safety 1st, 97% Program, Fixed and 7/1ARMs Teacher, Healthcare Worker & Safety 1st, 100% Program, Fixed and 7/1 ARMs Note: Interest-Only and 40 year terms are NOT eligible under the Buyers’ Bonus Loan Program.

    10. The transaction MUST be processed through Desktop Underwriter (DU) or Desktop Originator (DO). The transaction MUST receive an “Approve/Eligible” recommendation. Notes: “Approve/Ineligible” or Expanded Approvals (regardless of the level) are NOT acceptable. Freddie Mac’s Loan Prospector (LP) is NOT an acceptable Automated Underwriting engine for this program.

    13. Seller Contribution Limits (cont’d)

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