Conventional loans are actually any type of creditor agreement that are not guaranteed by the Veterans Administration (VA), or insured by the Federal Housing Administration (FHA). In general, all conventional loans are eligible for sale to the government sponsored entities such as Fannie Mae (FNMA) and Freddie Mac (FHLMC) or to private secondary market investors. There are two different types of Conventional loans; Conforming and Non-Conforming loans. Conforming loans have to meet the guidelines set by Fannie Mae and Freddie Mac. Any loan which does not meet guidelines is a non-conforming loan.

Conventional loans are actually any type of creditor agreement that are not guaranteed by the Veterans Administration (VA), or insured by the Federal Housing Administration (FHA). In general, all conventional loans are eligible for sale to the government sponsored entities such as Fannie Mae (FNMA) and Freddie Mac (FHLMC) or to private secondary market investors. There are two different types of Conventional loans; Conforming and Non-Conforming loans. Conforming loans have to meet the guidelines set by Fannie Mae and Freddie Mac. Any loan which does not meet guidelines is a non-conforming loan.

• Minimum credit score of 620
• Down payment can be a gift from a family member
• Max 3% seller assist

A jumbo loan is a loan in which the amount borrowed is greater than the loan limit set by Fannie Mae (FNMA) & Freddie Mac (FHLMC). A loan amount greater than $548,250, is considered a jumbo loan.

Advantages:

• • • Able to finance a home that is over the maximum loan amount of $548,250 established by Fannie Mae and Freddie Mac
  • • Enables a borrower to purchase “more house”

A jumbo loan is a loan in which the amount borrowed is greater than the loan limit set by Fannie Mae (FNMA) & Freddie Mac (FHLMC). A loan amount greater than $548,250, is considered a jumbo loan.

Advantages:

• • • Able to finance a home that is over the maximum loan amount of $548,250 established by Fannie Mae and Freddie Mac
  • • Enables a borrower to purchase “more house”

FNMA has introduced a new Affordable Lending Product, HomeReady™. This program is designed for creditworthy, low-to-moderate income borrowers, with expanded eligibility for financing homes in designated low-income, minority, and disaster-impacted communities.

 

Program Highlights

• 30 Year Fixed Rate, Primary Residence Only
• 97% Maximum LTV/CLTV with a 620 FICO®
• 1-4 Unit Single Family, PUD, Condo Eligible
• Purchase and Rate & Term Refinance Available
• Maximum Qualifying Ratio of 50%
• No Minimum Borrower Contribution Required – Gifts Allowed
• Homebuyer Counseling Required
• Mortgage Insurance Required

Borrower Income Limits

• No income limits for properties located in low-income census tracts
• 100% of area median income (AMI) for properties located in high-minority census tracts or designated disaster areas
• 80% of AMI for properties located in all other census tracts

Freddie Mac Home Possible® and Home Possible® offers a fixed-rate loan program and provides a responsible, low down-payment mortgage option for first-time homebuyers and low-to-moderate income borrowers.

Program Highlights:

• FHLMC Home Possible® – Max LTV 97%
• 15 & 30 Year Terms Available
• Lender Paid Mortgage Insurance Available
• Owner-Occupied Primary Residence Only
• 1-4 Unit SFR’s, PUD’s and Condo’s
• Max 50% Debt-To-Income
• Full Gift Eligible
• Lower MI Rates
• 620 Minimum FICO®

Borrower Income Limits

• No income limits for properties located in low-income census tracts
• 100% of area median income (AMI) for properties located in high-minority census tracts or designated disaster areas
• 80% of AMI for properties located in all other census tracts

With Supreme Lending’s Lock & Look™ program* you can lock in a great interest rate now and take your time finding the home of your dreams. You can shop with confidence knowing you have your interest rate locked in for a full 60 days and are already qualified for a loan with Supreme Lending. WithLock & Look™, you get 30 days to look and another 30 to close. And, there is NO up front fee!

*Lock & Look™ is a registered service mark of Everett Financial D/B/A Supreme Lending and is available on Conventional 30 & 15 year fixed rate and FHA 30 year fixed rate loans for qualified borrowers. Lock expires after 60 days. Pre-qualification request must be made with Supreme Lending. Limited time offer. Available for conventional 15 and 30-year fixed loans and FHA 30-year fixed loans only.

The Federal Housing Administration was created in 1934 in an effort to bolster homes sales during the Depression. By financially guaranteeing loans, the FHA lifts much of the risk of non-payment and foreclosure from private lenders. It is important to remember that the FHA is not a lender; they just guarantee your loan.

Advantages:

• Bankruptcy not an automatic disqualification
• Lower interest rates
• Down payment is less
• Lower mortgage points and other closing cost requirements
• Resale can be made more quickly
• Is backed by the U.S. government

Features:

• Down payment required
• Higher upfront Mortgage Insurance Premium (MIP) than on conventional loans but monthly MIP is lower
• Loan Limits are lower than conventional
• MIP required regardless of the Loan-to-Value (LTV)

FHA 3.5% Down Payment

• Lower Credit scores permitted (as low as 600)
• Down Payment can be a gift from a family member
• Minimum 2 years from Bankruptcy
• Minimum 3 years from Foreclosure
• Max 6% Seller Assist

A VA loan is a mortgage loan guaranteed by the Veterans Administration. It was created in 1944 and signed into law by President Franklin D. Roosevelt. A VA loan provides veterans and/or their surviving spouses who have not remarried, with a federally guaranteed home with zero down payment. The program, also referred to as the GI Bill, has been highly successful and has helped millions of American veterans and their families acquire a home.

Advantages:

• No down payment
• VA does not require private MIP
• Limit on the amount of origination fees and closing costs that the lender can charge
• Limit also placed on appraisal fees

Features:

• Borrower with eligibility remaining must have a Certificate of Eligibility from the VA
• Borrowers are required to make a one-time funding fee based on loan amount and applicant’s service length.
• Closing costs can be paid by the lender and the seller.

The USDA Rural Housing Service has various programs available to aid low- to moderate-income rural residents to purchase, construct, repair, or relocate a dwelling and related facilities. USDA Rural Housing loan programs allow qualified homebuyers to get loans with minimal closing costs and no down payment.

Advantages:

• • • No down payment requirement
    • Property must be located in an eligible rural area
    • Closing costs can be added to the loan amount (if the property appraises high enough to include it at up to 100% of the appraised value)
    • Loan government guarantee fee up front and annual
    • Low interest rates
    • Applicants with a wide range of credit profiles may qualify
    • Income eligible applicants who do not qualify for conventional financing may qualify
    • Families & individuals that have minimal funds for a down payment and closing costs includes first time homebuyers and repeat homebuyers
    • Seller concessions – 6% max
    • No cash reserve requirement
    • No Non-Allowable costs
    • No First Time Homebuyer Requirement
    • 30 Year Loan at competitive fixed rate
    • No limit on gift funds

Features:

• • • Property must be in very good condition and have a high insulation R-factor
    • You cannot make over 115% of the median county income to qualify
    • Must be able to verify income limits