Your idea is good, however there are restrictions based on lending guidelines.
Depending on the loan program, seller concessions are limited to 3% or 6% of the selling price.
As stated, property must still appraise for higher amount and property taxes will be based on selling price.
Giving cash back to a borrower isn’t “legal” but could still happen.
A buydown can take 5-7 years to make sense, and some lenders have floor rates and don’t even allow a buydown.
Whatever will be will be. Lending ISN’T going away.
10% was a great conforming rate at one time.
The simple fact is that many people won’t be able to qualify for a loan. It’s been that way in NYC and SF Bay area for a long time. It’s not an entitlement.
The free market will find its level, with many people sitting on the sidelines.
Right Now,
Jumbo Loans (above $417k)
30 YR Fixed, 20% down are 7.625%.
(2nds are available up to 90-95%) with 680+ mid credit score. With a score above 720 or 780 it gets slightly better.
Still have to qualify.
Money is still available. Jumbo rates are higher than they were a month ago, but still less than they were years ago.
FYI 8.25% on the above would pay a 1% rebate/commission with a 780+ score, which is obscene in my opinion.
