Freddie Mac HFA Advantage Mortgages
HFA ADVANTAGE? VS. FHA: A SIDE-BY-SIDE COMPARISON
Assumptions:
? 30-year fixed rate mortgage
? Two borrowers
? Qualifying income 80% area median income
? Purchase price= $200,000
? FICO score = 700
? Scenarios 1 and 2 require 18% mortgage insurance (MI) coverage
? $400 monthly taxes and insurance ? Debt-to-income ratio 45% ? Annual appreciation of 3% over 5 years; MI may be dropped by month 60 in scenarios 1 and 2
Down Payment
SCENARIO 1
x Borrower paid monthly MI premium x 97% LTV x Rate 4.25%
SCENARIO 2
x Non-refundable single premium paid at closing x 97% LTV x Rate 4.25%
FHA
x FHA upfront and monthly MI premium x 96.5% LTV x Rate 4.00%
$6,000
$6,000
$7,000
Upfront MI Cost
$0
$3,977 (2.05%)*
$3,378 (1.75%) **
Total Loan Amount Financed
$194,000
$194,000
$196,378
Monthly MI ($ / rate)
$89 / 0.55%*
N/A
$138 / 0.85%**
Monthly Payment (PITI + MI) (Year 1)
$1,443
$1,354
$1,476
Monthly Cost Savings vs FHA
MI Cost Over 5 Years (60 payments + any upfront MI) 5-Year MI Savings Compared to FHA
$33 $5,340 $6,005
$122 $3,977 $7,368
$11,345 estimate
-
These scenarios are intended for illustrative purposes only and should not be relied upon for actual rate quotes, loan estimates or other borrower disclosures. Comparisons are at the highest LTV ratio allowed for the products.
*Private MI premium rates drawn from the rate cards of three mortgage insurers' websites as of March 2020. Check premium rates with your preferred MI provider(s).
**FHA includes an upfront mortgage insurance premium (1.75%) and monthly premiums (0.85%). FHA example assumes financing of upfront premium. Private MI premiums adjust based upon loan features and borrower credit profile (e.g., loan-to-value ratios, loan purpose, loan term, MI coverage required, FICO scores, number of borrowers, debt-to-income ratios, etc.).
20-02567
Publication Number 1034 | May 2020
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- competitive advantage
- strategies for competitive advantage value added ag
- the federal employees
- what s a medicare advantage plan
- hra frequently asked questions geha
- medicare managed care manual
- study questions with answers
- the verizon advantage plan ibew local 827
- male advantage and the gender composition of jobs who
- freddie mac hfa advantage mortgages
Related searches
- fmerr freddie mac program
- freddie mac enhanced relief refinance program fmerr
- freddie mac enhanced relief refinance program
- freddie mac enhanced relief refinance 2019
- freddie mac refinance guidelines
- freddie mac landlord counseling
- freddie mac bank statement requirements
- freddie mac 5305 2
- freddie mac retirement account distributions
- freddie mac social security income
- freddie mac bonus income guidelines
- freddie mac guidelines on gifts