Conventional Loans

Features include:

  • Maximum loan amount $484,350. Over this limit, the loan is a JUMBO loan.
  • 3% to 5% minimum down payment options.
  • 100% Option with no MI available. This includes a 1st & 2nd mortgage.
  • Credit score 620+. Higher credit scores typically result in a better interest rate and lower mortgage insurance costs.
  • Non-occupant Co-borrowers and gifts are allowed.

FANNIE MAE - HOMEREADY

 

Benefits

  • 3% down payment available.
  • Discount Mortgage Insurance.
  • Expanded debt ratios.
  • No minimum borrower funds required for down payment.
  • Gifts, grants, down payment assistance programs, and 2nd's allowed.
  • Non-occupant borrowers allowed (max 95% LTV).
  • No reserves required.
  • No first time homebuyer requirements.
  • The occupant borrower may own other residential properties.
  • Other Income:
    • Boarder income (relatives or non-relatives): up to 30% of qualifying income; documentation for at least 9 of the most recent 12 months (averaged over 12 months) and documentation of shared residency for the past 12 months.
    • Accessory dwelling units: Rental income may be considered in qualifying the borrower per rental income guidelines.

Requirements

  • Minimum Credit Score 620.
  • Home ownership education required, cost $75.
  • Income:
    • Limits defined by areas, no limits in low-income census tracts.
    • Household income is not required.
    • Non-borrower living in home income may be included.
    • Innovative new feature that supports extended family households, will consider income from a non-borrower household member.
    • Boarder income permitted documentation of at least 9 of the most recent 12 months, up to 20% of qualifying income.
  • LTV - Loan to Value
    • Purchase: 97%, High-Balance – 95%, Manual underwriting 95%
    • Limited Cash-Out Refinance:
      • FNMA owned mortgages up to 97% LTV/ CLTV up to 105% with eligible Community Second Assistance Program.
      • DU and manual underwriting to 95%.
  • Non-Occupant Borrowers
    • Permitted to maximum 95% LTV in DU; 90% LTV manual with max 43% DTI for occupying borrower.
    • Income considered as part of qualifying income and subject to income limits.
    • No limitation on ownership of other property for non-occupant borrower.

Guidelines change frequently, therefore, we do not guarantee accuracy.  Above is provided as a reference, to be confirmed with our team. Subject to change without notice.