May 27 2008
Buyer Bonus Program
There is a new ‘buyer bonus program’ available through Suntrust Mortgage. This program allows the seller to contribute up to 6% of the loan amount towards the buyers first six months mortgage payments. Here’s an example:
With less than 10% downpayment on a $200,000 loan, the maximum seller contribution is 3% or $6,000. If you use this weeks interest rate of 5.875% the buyers mortgage payment would be $1183.30. If we divide $6,000 by $1,183.30, we see that the seller can make up to 5 Buyer Bonus Payments utilizing the Suntrust Mortgage Buyer Bonus program.
How It Helps Buyers
If you are a buyer with 3% down, this could really give you a helping hand during the first six months, as you are settling into your first home. Since you can save mortgage payments for the first five months, you now have extra money to spend on household furnishing.
How It Helps Sellers
Anything you can do to increase the pool of buyers in today’s market is a positive. This program should be especially attractive to first time home buyers, who could us the assistance with their mortgage payments.
First time homebuyers now have another program that they can use to get their first home. That’s a good thing!
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