2019 Idaho Real Estate Blog

Rate Lock Programs from Fairway Mortgage Main Idaho Real Estate Insights

Learn more about Extended Lock Program from Fairway Mortgage.

Frequently Asked Questions (FAQs) about Rate Lock Home Loan Programs

Q: Is this program only for conventional and high balance loans?
A: Yes

Q: Can you use this program for investment properties?
A: Yes, as long as they are eligible under our Fannie and Freddie products.

Q: Does this program allow for any jumbo financing?
A: Only Fannie and Freddie products are eligible at this time.

Q: Is this program available on manufactured homes?
A: Yes, as long as they are eligible under our Fannie and Freddie products.

Q: Is this program available on any new construction to include a true modular home?
A: Yes, as long as they are eligible under our Fannie and Freddie products.

Q: Can the program ever be used if the home is a resale?
A: This is specifically for new construction properties.

Q: In regards to the "new construction" requirement is this for "construction" only loan or a buyer that is purchasing from a builder once the home is complete?
A: This program would be applicable to a purchase of new construction or a refinance that the borrower holds his own construction loan.

Q: Is the upfront fee refunded if the borrower is denied?
A: Yes, send a copy of the denial statement to the Accounting department to request the refund as soon as the loan is denied.

Q: What if the new construction is not ready at the end of lock - can we extend?
A: Yes, a 30-day extension is available.

Q: Does there need to be a minimum market movement to take place before the float down is allowed?
A: No, but there will be a 0.125% rate adjustment to the current 60-day pricing.

Q: Do we need to add the upfront fee on the LE initially if we will be charging their Credit Card later? Or is this considered a change of circumstance and we can add the fee later to the LE?
A: The 1% upfront fee must be disclosed to the borrower and Intent to Proceed received prior to collecting any fees. If a loan has already been disclosed and the borrower decides to go with an extended lock, then the fee can be added as a Change of Circumstance. However, the Intend to Proceed will still be required before a fee can be collected and the loan locked.

Q: What line or section of the itemization does the 1% fee go on? Is it an APR fee?
A: The Extended Rate Lock Fee should go on the last line of section 801 and is an APR fee.

Q: How soon does the lock desk need to have confirmation of the fee being collected after the loan is locked?
A: In all states (except NY, MA, and MO) the upfront fee must be collected prior to locking the loan. In NY, MA, and MO the fee must be collected within 24 hours or the lock will be cancelled.

Q: Will we need to have a different CC Authorization signed by the borrower to be able to charge them for the lock fee?
A: No, the standard Credit Card authorization that is currently in the disclosure package is sufficient.

Q: Is the 1% upfront fee based on the loan amount or purchase price? Also with new construction, what if the purchase price changes after the lock?
A: The upfront fee is 1% of the loan amount. In the event the loan amount changes during construction, it is not necessary to collect an additional fee. The origination fee will be refunded at closing.

Q: What is an acceptable form of payment for the upfront fee?
A: A Credit card should be used to collect the upfront fee.

Q: Does everyone in the branch have to complete training for the branch to be setup on the program, or just one LO who will use the program?
A: Anyone disclosing the program should take the required training.

Q: Can the 1% fee be applied towards down payment/ closing costs at closing?
A: The fee will be refunded to the Borrower at closing on page 3 of the CD.

Q: If borrower needs to put the upfront fee on a credit card then do we have to get a credit supplement and include the increased payment on the DTI even knowing we are refunding it at closing?
A: Since these are conventional products, the credit refresh prior to closing will be sufficient for any increase in payment that may occur.

Q: Can you extend after the float down?
A: Yes, a 30 day extension would still be permitted after the float down at the Borrower’s expense.

Cory Powell
Cory Powell, Idaho Home Loan Professional
Professional Loan Officer, NMLS#1458128
3959 E Overland Rd  | 208.850.3363

 Apply Online

Fairway Mortgage
ID License Number MLO-18710
This is a paid advertisement

*VA loans subject to individual VA Entitlement amounts and eligibility, qualifying factors such as income and credit standards, and property limits. Fairway is not affiliated with any government agencies. These materials are not from VA, HUD or FHA, and were not approved by VA, HUD or FHA, or any other government agency. **Eligibility subject to program stipulations, qualifying factors, applicable income and debt-to-income (DTI) restrictions, and property limits. Copyright©2018 Fairway Independent Mortgage Corporation. NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-866-912-4800. All rights reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Equal Housing Lender.

Posted by tlangford at 12/20/2018 2:29:00 AM
Comments (0)
No comments yet, login to post a comment.

Michelle Penick, Build Idaho Client Real Estate Services

Michelle Penick

Client Care Team
208.629.0217 |

Contact Agent
<August 2019>
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
June 2017
April 2017
March 2017
February 2017
January 2017
December 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
June 2006
May 2006
April 2006
March 2006
October 2005
Current Weblogs
There are no blogs in this Group.
★★★★★ 5 stars - "Our experience with Full Sail/ Build Idaho was great from start to finish! "

Ask a Question | Schedule a Tour | Make an offer

*Full Name:*Phone Number:*Email Address:
*I'm looking for:MessageSource