not insured by Federal Government, but backed by Government agencies FannieMae and Freddie Mac
- No income or Geographic Limits
- Not just for first time homebuyers
- Home can be owner occupied, 2nd (vacation)/home or investment
- Maximum Loan-to-value is 95%, Minimum Downpayment = 5%
- Rates offered include 15,20,25,30 year fixed as well as ARM products
- Available for Purchase and Refinance
- Minimum FICO score typically 620. (680 for more flexible Underwriting)
- Rates are more affected by FICO score and Loan-to-Value than FHA, VA and USDA loans are. (Best rates available for 720+ FICO).
- Properties financeable include Manufactured Homes, Condos, Townhomes, 2-4 Unit multifamily as well as Single Family dwellings.
- If putting less than 20% down (i.e higher Loan to value than 80%) then Private Mortgage Insurance (PMI) applied
- Seasoning Rules Since Past Derogatory Credit Events For CONV Loans ( i.e. since Foreclosure, Bankruptcy, Short Sale) See informative Video at www.homebuyerworld.com/charlesvamadeva
or 97% (3% down) if one of the Borrowers is a first-time homebuyer and certain other restrictions are met.
CONVENTIONAL HARP REFINANCE LOAN (as of Jan2014, awaiting HARP 3.0 to supersede HARP 2.0)
- HARP stands for Home Affordable Refinance Program (rolled out in 2009)
- Special Refinance for loans presently backed/securitized by Freddie Mac or Fannie Mae before 31 May 2009 www.harp.gov (Conventional Only, not FHA, USDA, VA)
- Presently HARP available until 12/31/2015
- For lowering interest rate, shortening loan term, or switching from an adjustable to fixedrate mortgage.
- Equity is not necessary (underwater homes = ok) – most loans completed without Appraisal
- Homeowners must be current on existing mortgage payments (no 30-day late payments in past 12months)
- No Cash Out allowed, refinance rate & term only
- Existing PMI (Private Mortgage Insurance) will remain/be transferred with new loan