Creative Mortgage Offer

[Bryan Beam]

We have a 27-unit townhome complex under construction. To address the higher interest rates we want to develop a creative mortgage offer that we can market to buyers. One thought is we, the seller, would buy down the loan to offer a rate that is 2% lower than the market. We couldn't afford to do this over the life of the loan so maybe the buy-down is for the first three years and then the mortgage goes to the market rate or it's some sort of ARM. We are very open to ideas. We realize we would have to define the creditworthiness requirement of the buyer.

The townhomes will be in the $350 - $375K range. 

Are any lender interested in discussing?

Thanks

[Doug Smith]

I'm not licensed in NC, so I can't help you with this, but I just ran numbers on this and in FL, it would take between 5% and 5.5% of the loan amount to buy the rate down 2%. It's do-able, but not cheap.