The SmartBuy 5/1 ARM Down Payment Assistance product represents a significant innovation in the mortgage landscape by providing a dual-mortgage solution aimed at improving home affordability. This program features a first mortgage structured as a 5/1 adjustable-rate mortgage (ARM), allowing borrowers to benefit from initially lower interest rates that will adjust after five years. Accompanying this first mortgage is a repayable second mortgage, which assists borrowers in overcoming the financial hurdle of a substantial down payment. By alleviating this burden, the SmartBuy program aims to broaden access to homeownership, particularly for first-time buyers who might struggle with upfront costs.
Key elements of the SmartBuy 5/1 ARM Down Payment Assistance Product:
– **First Mortgage**: Structured as a 5/1 ARM, providing lower initial rates.
– **Second Mortgage**: A repayable option that helps cover down payment costs.
– **Target Audience**: Primarily designed for first-time buyers and those facing financial barriers to homeownership.
– **Affordability Focus**: Aims to enhance access to housing markets by reducing upfront financial obstacles.
You can read this full article at: https://www.housingwire.com/articles/click-n-close-pairs-5-1-arm-with-down-payment-assistance-for-new-homes/(subscription required)
Note Servicing Center provides professional, fully compliant loan servicing for private mortgage investors so they can avoid the aggravation of servicing their own loans and just relax and get paid. Contact us today for more information.
