Homebridge is expanding the states that are available for the prepayment penalty option on the Simple Access program when the loan is secured by an investment property
The states eligible for the prepayment penalty option has been expanded to include the following states:
- Hawaii,
- Illinois,
- Massachusetts,
- South Carolina,
- Vermont
As a reminder, the following applies to the prepayment penalty option:
- Available on all documentation options but it is not required
- Investment properties only
- A 1 year, 2 year, and 3 year prepay is available
- The prepayment penalty applies when:
- There is a full prepayment, or
- Any payment within the preceding 12 months exceeds 20% of the original principal loan amount
- The prepayment charge will equal 2.5% of the amount of the prepayment that exceeds 20% of the original principal loan amount
The prepayment penalty option is available in the additional states listed above effective November 5, 2021 for floating transactions
NOTE: Loans locked prior to November 5, 2021 are not eligible to add the prepayment to the transaction if the property is located in one of the additional states
The Prepayment Penalty topic in the Simple Access guidelines have been updated and posted on the Homebridge website at www.HomebridgeWholesale.com
If you have any questions, please contact your Account Executive
