This article by Housing Wire explains how Guaranteed Rate, an online mortgage lender, has added new loan programs that provide lower mortgage rates for borrowers and builders. Generally, large builders and developers have access to better rates at banks because of the large size of their loan and the large percentage of their business. But smaller builders and developers, who often need lower rates to make projects and deals work financially, often don’t have the same access to discounted rates at banks.
Guaranteed Rate’s new loan programs aim to make mortgage rates more accessible to smaller builders and developers. The two types of loans, Builder Plus and Builder Boost, are designed to bring the same level of discounted rates available to larger developers to smaller builders and developers. The Builder Plus loan program offers lower mortgage rates to borrowers and the Builder Boost loan program offers lower rates to builders and developers. To qualify for Builder Plus, borrowers must have a credit score of 720 or higher, 20% down payment, and a loan amount of $150,000 to $2 million. The Builder Plus program also offers discounted and expedited fees to borrowers.
The Builder Boost program also offers discounted mortgage rates to builders and developers. To qualify for Builder Boost, builders must have a debt-to-income ratio of no more than 45% and a loan amount of $350,000 to $2 million. Similarly to the Builder Plus loan program, Builder Boost also offers discounted and expedited fees for qualifying borrowers.
Overall, Guaranteed Rate’s newly launched loan programs aim to provide lower mortgage rates to both borrowers and builders. These programs are designed to give smaller builders and developers the same access to discounted rates that larger developers receive from banks, making it easier for smaller builders and developers to take advantage of the lower rates they need to make their projects and deals work financially.
You can read this full article at: https://www.housingwire.com/articles/guaranteed-rate-loan-programs-aim-for-lower-rates-for-builders-borrowers/(subscription required)
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