Posted by GMann on May 17, 2006 at 13:30:18:
Non-conventional loans require a PPP for the best pricing (rates). The reason there is a charge (rate or points) for no PPP is those loans are less valuable (profit) in the secondary market. If your state does not allow a PPP then the value of the mortgage doesn’t take quite as much a haircut in value…but the value is still less than if it had a PPP.
If you are not comfortable with a 2-3 yr…you do have the option for a 1 yr. That will at least give the property time enough to appreciate a little. You are doing a 100% loan and you would have to bring $ to the table for closing costs if you went the conventional route