Answers to Frequently Asked Real Estate Questions Continued
What is "A" paper?
"A Paper" is a term used by underwriters to refer to a loan which meets the parameters set by Fannie Mae/Freddie Mac for loans those organizations will buy or purchase. Also referred to as conforming, "A" paper says the borrower has adequate credit, income and job history for a given loan.
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What is "B" paper?
"B paper" or nonconforming is a loan which does not meet the requirements set out by Fannie Mae. At least one factor has caused the loan to be unacceptable. The borrower may be borrowing a large percentage of his income, his credit score may be low or his income erratic or poorly documented. These loans generally have higher interest rates and/or more fees than "A" paper. If you believe you are eligible for a conforming loan and are not being offered one, ask your lender why and/or contact another lender.
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What is First Time Homebuyer money?
In Missouri first time buyer money is offered through the Missouri Housing Development Corporation - MHDC. MHDC is a grant program where first time homebuyers within the income limits can get a lower interest rate or a grant (downpayment assistance) to buy a home. For more information go to MHDC's website.
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Call me - Jackie Martin - with your real estate questions
Jackie Martin, Realtor
email: Jackie[at]WeSellStLouis.com
We Sell St. Louis
3424 Missouri Ave.
St. Louis, MO 63118
office: 314-772-HOME (4663)
toll-free: 1-866-971-HOME (4663)
cell: 314-495-4428