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Fannie Mae has LLPA's, nasty little add-ons for doing a combo mortgage. If the combined LTV is 90%, the add-on was running 1.25 in points 1.25% of the loan amount - so, if your loan is 200K, the adjustment would add $2500 to your closing costs or an increase in rate by.125 to .250% in rate. For an 80/15/5, the add-on is 1.75 in points, or in the same example, or $3500, or an additional 1/2 to 3/4% in rate. There's also an LLPA (add-on) for buying a condo, doing a cash out above 70% LTV cash out out refi, highrise condo and on it goes, including adjustments for scores.
Start asking your elected officials where all these fees are going. Don't stop asking until it is answered. It's a new tax the public is not aware of. We (credit unions) use Fannie guidelines, but most do not deliver to Fannie. We do this so we are liquid or have the ability to become liquid quickly.
Last edited by SmartMoney; 12-15-2015 at 08:43 PM..
Reason: Clarification
Fannie Mae has LLPA's, nasty little add-ons for doing a combo mortgage. If the combined LTV is 90%, the add-on was running 1.25 in points 1.25% of the loan amount - so, if your loan is 200K, the adjustment would add $2500 to your closing costs or an increase in rate by.125 to .250% in rate. For an 80/15/5, the add-on is 1.75 in points, or in the same example, or $3500, or an additional 1/2 to 3/4% in rate. There's also an LLPA (add-on) for buying a condo, doing a cash out above 70% LTV cash out out refi, highrise condo and on it goes, including adjustments for scores.
Start asking your elected officials where all these fees are going. Don't stop asking until it is answered. It's a new tax the public is not aware of. We (credit unions) use Fannie guidelines, but most do not deliver to Fannie. We do this so we are liquid or have the ability to become liquid quickly.
You use the Fannie guidelines but without the LLPAs?
You use the Fannie guidelines but without the LLPAs?
Yes. Most credit unions are set up this way. The only adjustments are for 95 &n97% LTV, and, credit scores. The hits on the scores depend on LTV. If you're 740 or better, you get the best the house has to offer, even on an 80/10/10.
Yes. Most credit unions are set up this way. The only adjustments are for 95 &n97% LTV, and, credit scores. The hits on the scores depend on LTV. If you're 740 or better, you get the best the house has to offer, even on an 80/10/10.
Sounds like I'll have to try a CU or two if I get in a situation where the piggyback makes sense. Appreciate the info.
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