MOP Comparison

UC MOP Loan or Commercial Loan - Which is Better for You?

  UC MOP Loan Commercial Loan
Max. debt ratio 48% 40%
Supporting documents Originals, ATM statements, emails, etc. OK Original written statements from financial institution only
IRS 4506-T Form (to request tax returns) Not required; UC verifies income upfront Required for "easy qualifier" or "quick qualifier" loans
FICO Credit Score & Loan Rate Same rate applies regardless of score Rate increases noticeably if score <760
Rates and Fees
Rate Low, based on UC STIP index High, introduce "teaser" rates, then normalized
Type of rate Variable Fixed, variable, or hybrid
Margin 0.25% >= 1%
Term 10 - 30 years 10 - 30 years
Annual Rate Cap 1% Possibly 2% or higher
Conforming vs. Jumbo One rate for both Jumbo is approx. 0.25% - 0.50% higher rate than conforming
Loan to Value (LTV)=loan sales price ratio Same low rate Tiered (i.e. larger downpayment, lower rate; smaller downpayment, higher rate)
Penalty No Maybe
Points/Fees No Possibly Yes. Fees are "document fees", "processing fees", "lender fees"

Closing costs and rate

Same rate whether closing costs are financed or not Rate bumped on "zero cost" loans
Private Mortgage Insurance (PMI) None Yes, if down payment <20%
Service Personal, anytime Varies by organization