|FIXED RATES||ADJUSTABLE RATES|
|30-year fixed||10-yr arm|
|25-year fixed||7-yr arm|
|20-year fixed||5-yr arm|
|15 year fixed||Fully Amortizing|
|10-year fixed||NO Interest Only|
CONFORMING LOAN LIMITS ARE:
1-unit $484,350 | 2-units $620,200 | 3-units $749,650 | 4-units $931,600
HIGH-BALANCE CONFORMING LOAN LIMITS ARE (UP TO)*:
1-unit $726,525 | 2-units $930,300| 3-units $1,124,475 | 4-units $1,397,400
*High Balance loan limits vary by county. In higher counties they are: (check your county)
Features of Fixed Rates
- Loan is paid in full at the end of the period (30, 20, 15 years, etc)
- Your principal and interest payment will never change.
Features of Adjustable Rates
- Loan is paid in full in 30 years
- Your principal and interest payment will not change for the fixed period (5, 7, 10 years) then rate and payment adusts annually.
Benefits of Conventional Loans
- No prepayment penalty. Loan can be paid off at any time.
- Down Payments as low as 5%
- Credit scores as low as 620 acceptable
A likely applicant would have:
- a credit score of at least 620 (660-680 preferred)
- at least a 5% down payment and at least two months cash reserves in savings
- at least 20% equity in property when refinancing
- Borrower with two year job history and a debt-to-income ratio below 43%
- a loan amount within the conventional loan limits
- No mortgage insurance required (with 20%+ down payment)
- Private mortgage insurance (for loans over 80%) is removed once the property reaches a 78% loan-to-value ratio
- Offers lender-paid mortgage insurance which can greatly reduce your payment and increase your ability to qualify for higher loan amounts
- Makes for a stronger purchase offer than FHA or VA
Conventional Loan Checklist
When you’re applying for an a Conventional loan, the following list of documents will help expedite the process. We can help you understand any part of the loan process so don’t hesitate to contact us with any questions.
- Past two years’ complete tax returns.
- Past two years’ W-2s, 1099s and any other necessary tax forms.
- Most recent 30-day’s pay stubs.
- Self-employed borrowers need 2 years’ tax returns and proof of income year-to-date if available.
- Past two months’ bank statements (all pages) for all accounts.
- Most recent statements from investment accounts (retirement, 410k, mutual funds, etc.).
- Driver’s License or other official government issued identification.
- Any Divorce, Palimony/Alimony documents showing financial obligations.
- Green card or work-permit (if/as applicable).