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Conventional Fannie Mae and Freddie Mac
What is a Conventional Loan?
A Conventional Loan is a loan that is meets the loan guidelines as set forth by either Fannie Mae or Freddie Mac. These loans currently have a maximum of $417,000. Conventional loans can be used for purchase, refinance and cash out. In addition you can finance different property types and different occupancy types, although loan to value adjustments apply. Unlike FHA, VA and USDA loans, conventional loans allow you to finance both second homes and investment properties. Conventional loans also offer a greater variety of lean terms such as interest only and more Adjustable Rate Mortgage (ARMS) and Fixed Rate Mortgage (FRMS) options.
Program Details:
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Up to 97% LTV Primary Residence
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Up to 90% LTV Second Home
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Up to 80% LTV Investment
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SFR, Townhomes and Condos, Condos must be FNMA Approved
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620 Minimum Credit Score (680 required for 97% LTV)
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Conventional loans have interest rate adjustments for credit scores below 740
Available Terms:
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Fixed Rate Mortgages with choices of 30, 25, 20, 15, and 10 year terms
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Adjustable Rate Mortgages with choices of fixed rate periods of 3, 5, 7 and 10 years
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With ARMS, typically the shorter the fixed rate period the lower the initial rate
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Principal & Interest and Interest Only available on 30 year fixed and 5 year ARM
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No Prepayment Penalties on any of our conventional loans
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