Today I would like to give you some details on the PITI Abatement loan program. This loan may be what you've been waiting for if you have a home listed or are looking to buy in todays market.
What is PITI Abatement?
- An incentive to the buyer to have up to the first 6 months of the mortgage paid by the seller.
- PITI Abatement program is a product designed specifically for home-buyers. You can give a 6% Seller Contribution that can be used for Principle, Interest , Taxes and Insurance payments.
- The seller can still contribute to closing costs.
What are the General Guidelines?
- Loan amounts up to $417,000
- Up to 100% of the purchase price
- Minimum score of 575
- Fixed Rates and ARMs
- Interest Only is available
- Income limitations may apply
- Closing costs can be paid by seller too
- No prepay penalty
How will this help sell your home?
Instead of dropping your listing price by $20K after a home is on the market you can offer PITI Abatement to potential buyers.
6 months without a mortgage payment for homebuyer means a lot, this allows them to buy the things they need when outfitting a new home.
For example, on a $250,000 home the PITI payment will be around $1,900 mth. The seller contributes $11,400 through escrow and in turn the buyer saves that amount in their first six months payments.
What is the Realtor marketing element?
- 6 MONTHS PAID!
- BUY THIS HOME AND I WILL PAY YOUR FIRST 6 PAYMENTS
- 6 MONTH PAID MORTGAGE INCENTIVE
- BUY MY HOME AND I PAY CLOSING COST AND 6 PAYMENTS
Realtors are using this program to move homes, it has to be marketed right and presented to the seller correctly. This is a powerfull tool!
For more details contact me,
Nick Porter
Community First Financial, LLC
7575 E Redfield Rd, Suite 235
Scottsdale, AZ 85260
480-305-8900 Ext: 308
541-231-3040 Cell
WWW.LAWENFORCEMENT1ST.COM
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