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.

  • 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.