This Builder was able to get their last three homes under contract in 18 Days after sitting on the market for 170 Days with rates in the 8's
Frequently Asked Questions
What is the maximum rate buydown we can commit?
Our Forward Commitment allows the builder to offer a mortgage 10 points (1000 basis points) below market so long as it meets Interested Party Contribution limits.
Is there a builder approval process?
No, the builder does not need to be vetted. However, there is a process for establishing the Forward Commitment.
Is there a minimum commitment the builder must establish?
Yes, $2 million in purchase price.
Is there an upfront fee?
There is a non-refundable fee based on the term of the commitment (lock rate):
90 Days = 50 basis points
120 Days = 100 basis points
180 Days = 150 basis points
So, a $2 million dollar commit for 150 days would have a non-refundable fee of $30,000.
Are there additional costs the builder must provide other than the upfront fee?
In addition to the upfront fee, the builder must offer a minimum of 2.00% builder contribution to buy down the interest rate on each transaction that is part of the commitment.
What loan types can this be offered on?
Forward Commitments are allowed on all agency programs which includes Conventional Fannie / Freddie, FHA, VA and USDA. This is available for buyers using the home as primary, second or investment home.
