CONVENTIONAL PURCHASE LOAN
Typically a great loan for borrowers with higher credit scores and large down payment. Through the Fannie Mae Home Ready program and Freddie Mac Home Possible, borrowers with lower credit scores and a limited down payment can also take advantage of a conventional loan. With these programs, borrowers can qualify for conventional financing with as little as 3% down and credit score down to 640.
Borrowers with higher credit scores, can avoid mortgage insurance with only 5% down or get temporary mortgage insurance which can be removed after 2 years through principal reduction of appreciation. Interest rates are typically a little bit higher than FHA but borrowers with a larger down payment can avoid monthly and upfront mortgage insurance which will result in a lower APR.
» Down Payment can be a gift from family or employer.
» Requires only 640 credit score.
» Competitive rates and low closing costs.
» No up-front mortgage insurance
» Does not require taxes and/or insurance to be escrowed (Optional)
» Backed by Fannie Mae and Freddie Mac.
» No Closing Costs Option Available.
NEW: 97% HomeReady Loan : Lower mortgage rates | Reduced monthly mortgage insurance
HOMEPATH FANNIE MAE PROGRAM
The Homepath program can only be used to purchase a Fannie Mae owned foreclosure. It is a conventional loan that offers a few incentives compared to regular conventional loans.
» No appraisal required(Fannie Mae appraisal already provided)
» Only 5% Down Payment
» No Mortgage Insurance
SELLER PAID CLOSING COSTS
It has been common these past few years to ask the seller to pay for closing costs but in this kind of hot market, home buyers need to stay as competitive as possible with their offers. Not asking the seller to cover closing costs can make the difference of whether an offer gets accepted or not. We offer premium pricing to cover closing costs & escrows with a lender credit. This is just another option that we like to offer our clients to give them more leverage during the home buying process.
DO YOU HAVE A UNIQUE SITUATION
Please contact us if you have any concerns about your situation or just need to run a scenario by us. We have a great relationship with our underwriters and can usually answer any difficult questions right away or within just a few hours.