Bulletin: MA2022001

Stewart offers a discount to first time homebuyers through the First-Time Homebuyers Program.  As a reminder, a discount in the amount of 10% is available to qualifying first time homebuyers and shall apply to the total policy premium for policies issued in connection with a 1-4 family residential purchase transaction when issuing a Homeowner’s (enhanced) Owner’s policy.   

For example, if a first-time homebuyer purchases a home for $500,000.00, and finances the property with a $400,000.00 mortgage, the total premium for the Homeowner (enhanced) Owner policy and a Standard Loan policy would be: $1,957.50 (with the discount).

The calculation is completed as follows, based on a simultaneous issuance:

     Premium for $500,000 Homeowner’s policy calculated at $4.00/$1,000            $2,000.00

     Plus $175.00 for simultaneous issue of loan policy                                                  $175.00

                 Subtotal                                                                                                        $2,175.00

     Subtract 10% of subtotal                                                                                           ($217.50)

     Total premium for Homeowner’s and Loan Policies with discount                       $1,957.50

Note: for purposes of the Closing Disclosure, the discount reduces the premium for the Homeowner’s Policy, not the loan policy. In the example above, the premium for a standard loan policy in the amount of $400,000 would be $1,000. Using the total discounted premium of $1,957.50 for both policies and deducting the loan policy premium of $1,000 results in an owner’s policy premium of $957.50.  

A first-time homebuyer shall mean an individual or individuals who are purchasing a primary residence and have not owned a home during the last three years. 

The 10% discount will be collected from Stewart's portion of the premium and will not affect the premium retained by the agent. 

When remitting a policy where the first-time homebuyer discount was applied, the remitted policy must be accompanied by a copy of the First-Time Homebuyer Confirmation Form signed by the buyer(s). Click here for a copy of the First-Time Homebuyer Confirmation Form.

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