My wife and I are currently buying a house from Ryan Homes in the DC metro area in a new development. We are required by contract to apply for their in-house mortgage lender aka broker, NVR Mortgage. They peddle $7,500 closing cost assistance but of course this is built back into the loan with origination fees and other padded fees. I am just curious as to how this is legal as it seems like all of these companies are co-mingled together. NVR Inc., owns Ryan Homes, NV Homes, NVR Mortgage, and NVR Settlement Services. I also assume they get paid when they sell your loan as well?
Starting Score:TransUnion: 698 (12 FEB 2010), Equifax: 674 (12 FEB 2010)
I just applied for USAA Mortgage and will hear back sometime next week I assume. NVR estimated property taxes at 350 a month while USAA estimated at 160 a month. I have been saying all along that 350 a month in property taxes is vastly overstated by of course says they have sold houses at this much before.
I am also buying a Ryan home in the DC metro, however, I don't think you are required to use NVR unless they are giving you free options/incentives. you could always sort your own financing besides if you get a lower interest rate they are required to match it, if they couldn't you could keep their incentives plus use your own lender. someone correct me if I'm wrong.
Starting Score: EQ: 532, EX: 569, TU: 621 (All lender pull 10/15/11)
NVR told us that if we get an outside lender and NVR can't match it, we get to keep the 7500 in closing cost. But in our contract it states that you MUST use NVR to get the incentive. Both the sales rep for the community and the loan officer both told us that if they can't match it we will still get the 7500 so we'll see. I hope they stand by their word because they really don't want a holy war with me :-). Starting, they quoted us at 3.75 for interest rate and 4.01 for APR. The going rate in our area is 3.35 with 3.55 APR. This is on top of all of their bs fees.
