How does the 'Accessible Year-Round' rule impact the rate?
Key Points
Type A properties (year-round access) may qualify for minimum down payment rules: 5% on first $500,000, 10% on portion up to $1,500,000.
Type B properties (seasonal/boat access) require at least 20% down and often have higher rates.
Lenders may add a rate premium (0.5% to 2%) for properties without year-round access.
Technical Research Verification
Our systems synchronized 1 data points and regulatory frameworks to verify this technical brief.
Related Questions
How does mortgage insurance enable lower down payments?
Mortgage insurance lowers the risk for lenders, allowing them to offer mortgages to borrowers with down payments between 5% and 20%.
How will lenders evaluate my debt service ratios, and what key factors are considered?
Lenders assess your ability to repay the mortgage by calculating your Gross Debt Service (GDS) and Total Debt Service (TDS) ratios.
What property considerations impact my mortgage application?
Lenders carefully assess the property's value and characteristics, directly influencing the loan amount you can secure.
How does the 'straight switch' exemption benefit you at renewal?
The 'straight switch' exemption lets uninsured mortgage borrowers move their mortgage to a new federally regulated lender (FRFI) at renewal without needing to pass the Minimum Qualifying Rate (MQR) .