03-04-2012 05:12 PM
There have been 2 open homes recently where the listing agent mentions that the home qualifies for a 1/2 percent interest rate. When I asked if the loan was a 5/1 type loan or adjustable they said that the loan is a 30 year fixed. The agents also mentioned that these loans are through gov't programs and only on certain properties. As far as I know only "gov't loans" that are available are FHA loans which are gov't backed loans available to the public.
These homes are REO and apparently not through a big bank like BOA, the agent didn't tell me the name of the bank but did acknowledge the banks isn't a big bank, just to call the loan officer on the flyer.
I'm guessing the catch has to be that the price of the home is higher so as to cover the lower interest. Can someone explain?
03-04-2012 09:54 PM
There are all kinds of government programs and loans outside FHA. There is rural loans and there are subsidized low income homes with loans. There are many more.