FHA Options
You can choose from a variety of options that may help you achieve home ownership more easily.
2/1 Buydown Loan:
Your actual rate is 2% below the rate shown on your loan promissory note for the first year, then 1% below the rate the next year. This gives you a lower initial payment rate, letting you step up into the standard loan payment over the first two years, giving you extra cash to furnish your home and establish yourself.
Escrow Subsidy Loan:
If you're a little short of money to help you get those property taxes paid at closing, an Escrow Subsidy Loan may fit the bill. Although the interest rate is slightly higher than the traditional FHA interest rate, the extra amount provides funding from which HSBC can advance the cash to cover the extra escrow costs at closing. This means you pay back that advance easily over the life of the loan right in your monthly mortgage payment.
No Closing Cost Loan:
If you have the money to fund your escrow account, but paying for all the other fees will be tough, consider the No Closing Cost loan. Like the Escrow Subsidy loan, the interest rate is slightly higher, but HSBC advances funds to cover many of the miscellaneous fees associated with your new mortgage, such as:
- appraisal fee
- title insurance fee
- credit report fee
- judgement search fee
- mortgage tax
- bank attoney fee
- recording fees
