Confused

[Anonymous]

I agree with above poster.  IT sounds like some sort of in-house portfolio loan.  Even with the high scores there could be issues.  The property may not qualify due to condition for standard financing, the buyer could have problems proving income or time on job, DTI could be too high, etc.  This looks like more of that type of in-house or sub prime loan, and not all of these are due to low FICO.  There are many factors that would affect this.

Applying at a couple different places will clear this up.

[Anonymous]

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@Anonymous wrote:

And the 1.209 points are what is discounted from the rate, in other words they got her a loan rate of 7.509 which is ridiculous with her scores, Points are described as "Points are fees paid up front to the lender in exchange for a lower interest rate on a mortgage loan.  Paying points lowers your mortgage rate because the lender is getting a prepaid portion of the interest rather than collecting it in payments across the term of the loan." yes you pay for the points based on the amount of the loan to get a lower rate and it would cost 1.209 x 165,000 = 1994.85

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I don't think is entirely true.  Usually 1 point gets you .125% off the rate.  It looks like this document shows her paying 2 points (3201/160050) so her rate was actually 6.5%-ish.  I'm thinking the rate was 6.25% with 2 points.   It looks like she's going with a low down payment, she may be better off going FHA.  Is this the HomePath financing?  I'm guessing there's a higher rate because there's no PMI and only 3% down is required.