Interest Rate
3.094% APR
Credit Score
620
LTV
97%
Max Loan
$822,375
The scenario above is for the purpose of displaying the most recent rates for the above type of loan. These figures may not represent what is offered today and or at the time of rate lock. Please request a quote for the most accurate info.
Fannie Mae and Freddie Mac Loans are referred to as conventional loans. These types of conventional loans are not insured by the government and thus the lending guidelines are much more stringent. Typically, these loans have better rates, better terms, and lower rates and fees.
Min 3% down for home purchases
Financing up to 97% loan-to-value (LTV)
Flexible sources of down payment funds
No minimum contribution from borrower’s own funds
Borrower is not required to be a first-time buyer
No geographic restrictions on loan amounts
Non-occupant borrowers permitted
Cancellable mortgage insurance (restrictions apply)
Loan Purpose
- Purchase
- Lease Option Buy-Out
It’s a great time to buy a new home. Fannie Mae and Freddie Mac loans have great features and terms for First Time Buyers as well as other buyers. These funds can be used to buy a home available for sale that’s currently on the market or a home you are renting but have a contract to buy in the future.
Property Types
- SFR / Condo / Townhouse / PUD
- 2 Units
- 3-4 Units
Acceptable property types for Fannie Mae and Freddie Mac loans include single homes, condos, townhouses, and PUD’s. Other acceptable property types include 2 unit, 3 unit, and 4 unit dwellings.
Income Docs Needed
- 2 years taxes
- Last two pay stubs
- 3 months bank statements
- Source of down payment
For a salaried person, in general, you will want to be prepared to present 2 years federal income taxes, 2 recent pay stubs, and 3 recent bank statements, as well as the source of your down payment.
Loan Type Available
- 30 year fixed, 30 year fixed I/O, 15 year fixed, 110 year fixed
- 10/1 arm, 7/1 arm, 5/1 arm & other adjustable rate mortgages
Fixed rate loans are the long term financing of choice for most homebuyers today. 30 year fixed rates are at all time lows which makes qualifying for a home loan a lot easier. Also, low fixed rates mean you can qualify at the note rate means buyers can qualify for more house.
Debt Ratios
- 45% – 50% max full doc
- 45% – 50% max full doc w bank statements
The debt-to-income ratio is the percentage of your gross monthly income that goes to paying your monthly debt payments. The DTI ratio is one of the metrics that lenders, including mortgage lenders, use to measure an individual’s ability to manage monthly payments and repay debts. This ratio is generally maxed out at 45% – 50% for a Fannie Mae or Freddie Mac purchase loan. There are exceptions however.
LTV’s & Loan Amounts
- 97% to $822,375 – High Cost Areas
- 97% to $548,250 – Current max most areas
For 2021, the FHFA (Federal Housing Finance Administration) set the baseline conforming loan limit for 1 unit properties at $548,250 for Conventional financing (Fannie Mae & Freddie Mac) and up to $822,375 on high cost counties California. The maximum loan amounts are the 2021 Conforming Loan limits.
Down Payment
- 3%, 5%, 10%, and 20% or more
Down payment requirements for Fannie Mae and Freddie Mac loans will depend on the specific loan program that best fits the needs of the buyer. First time buyers with limited funds often choose the 3% and 5% option in order to allow for the payment of closing costs. Down payments for less than 20% will however require mortgage insurance in most cases. Some mortgage products at 3or 5% can have a built in mortgage insurance feature that raises the rate and eliminates the additional “MI” payment. This option can lower the overall payment.
Reserves
- Zero
- 3-6 Months
Reserves are savings balances that will be there after you close on your home purchase. Conventional loans may require zero or up to six month’s reserves depending on your debt-to-income (DTI) ratio, credit score, LTV, and the specific loan program.
Benefits
- Market liquidity
- Indusry standard underwriting standards
- Low Rates
Fannie / Freddie Loans are the most common loan type due to the ease in which lenders can buy and sell these loans in the secondary market. Underwriting is the easy to understand and also common. Lastly, rates are the best the market has to offer.
Best Features
- Low down payments
- Best market rates
- Lower fico requirements
Appraisal Requirements
- (1) Appraisal per property for conventional loans 1-4 units.
Appraisal requirements are similar for most residential single family, condos, townhiuses, and PUD’s. The primary items of concern are condition of the home, condition of appliances, furnace, air conditioning, water heater, and other mechanicals. The size of the home and property, quality of landscaping, as well as the quality of roofing and foundation. Appraisal fees can range from $400 – $800 depending.
Notes:
Self-Employed Mortgage Loans are Non-Conforming loans that offer enhanced mortgage solutions and higher limits for loan amounts above the conforming loan limit of $548,250 for most U.S. counties.
Q & A
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