CONVENTIONAL Loans

  • Loans that is not insured or guaranteed by the federal government. Designed for good-to-great credit and income consumers, who have money saved up for a down payment.

  • 3% Down Payment option.

  • 5% Down Payment is typical.

  • Mortgage Insurance

    • 20%+ and there is no MI.

    • Less than 20% Down and mortgage insurance is required. MI can be removed in several way.

      • You can pay an up-front cost to pay the MI at a discount rate.

      • You can pay a split pay up-front cost for a reduced monthly MI cost.

      • LPMI, I as your lender can pay a fee up-front to have the MI removed.

      • When making your monthly payment, you are paying down your mortgage. At 20% interest you can request it to be removed, at 22% MI is automatically removed.

      • You can make additional principle payments to get to the 22% level quicker.

      • You can allow the market to gain the percentage needed. For example, over time your home is expected to appreciate. When you believe the market value of the home compared to the purchase price reflects 20+% interest, you can contact your service provider who will give you an appraisers contact. You can pay that appraiser to do a new appraisal on your home. If you have the needed interest, the MI would be removed.

  • Cash-out up to 80% of the loan-to-value.

HomeReady & Home Possible

  • Primary residence only.

  • 3% down-payment

  • Competitive rates and fees.

  • Mortgage insurance required until 80% LTV ratio is reached.
    Reduced PMI with less than a 10% down payment.

  • More flexibility on down payment sources including gifts, employer-assistance programs, secondary financing and sweat equity.

  • Allows lower credit: 620 HomeReady, 660 Home Possible

  • First Time Buyer requirement not required

  • Borrower's Income Lookup: must not exceed 100% of the area median income (AMI), where the home is, unless the property is located within a low-income area by the Bureau of Census.

  • Home buyer education required.