familiar with TD Bank Right Step?

[jayac]

Is anyone familar with the Right Step program? How do their rates compare to a conventional loan? As background - Lower middle score is around 740 and ratios are 29/36 and have 10% down.

[StartingOver10]

Welcome to the forum Jayac!

Just did a search for it and the income is limited to 80% of the area median income.

Quote from their press release: The bank said the "Right Step" mortgage product is designed for homebuyers who make up to 80% of the median area income as determined by the Department of Housing and Urban Development, to buyers in the bank’s Maine to Florida footprint

Also, the down payment is 5% down with a minimum of 3% from the borrower and the other 2% can come from alternate sources. Sounds like down payment and income are not your issues though.

In fact, with your scores, your stated ratios and your down payment you should go for a conventional loan. Why do you think you need the Right Step program?

[jayac]

Thanks for the info. I'm just learning about mortgages and saw that this program was available. WHile we have 10%, I wouldn't being able to keep some addtional cash, as long as it didn't affect my monthy payments. I was just curious what interest rate they would offer. Am I safe to assume that a straight conventional loan rate is always lower than any of these "programs"?

[StartingOver10]

There are conventional loans at 3% down, or 5% down too. FHA is 3.5% down. So you really don't have to use up your savings.

PMI is generally lower on conventional loans, but it is score driven. The interest rate on conventional loans is score sensitive too. With your scores you would have no issues.

Your assumption is accurate. I am not familiar with this program you mentioned in particular; however, most of the time the programs for down payment assistance or more "affordable" housing come with a slightly higher interest rate or higher closing costs (an exception would be for bond programs).