Conventional Mortgage

Rainbow on beachMeet the NEW Conventional Home Loan

Conventional mortgages typically refer to any loan that is not Government insured.  Fannie Mae provides the underwriting guidelines for most conventional mortgages through it’s automated underwriting engine called Desktop Underwriter, or DU.

A common misunderstanding about conventional mortgages is that a large down payment is required in order to use this home loan program.  Conventional financing allows as low as a 3% down payment when used in conjunction with a private mortgage insurance carrier.

Conventional Mortgage | Borrower Requirements

  • Owner Occupied and Investment Property loan allowed
  • Minimum 640 Credit Score
  • Full income / asset documentation only – W2 and/or tax returns
  • 45% Debt to Income (DTI) ratio / 50% DTI allowed with compensating factors

Conventional Mortgage | Loan Terms

  • 30 Year Fixed
  • 20 Year Fixed
  • 15 Year Fixed
  • 10 Year Fixed
  • 5/1 | 7/1 | 10/1 ARM – Adjustable Rate Mortgage

Conventional Mortgage | Property Requirements

Properties eligible for Conventional financing include:

  • 1 family residence – single family residence (SFR)
  • 2 family residence – duplex (owner must occupy one unit)
  • 3 family residence – triplex (owner must occupy one unit)
  • 4 family residence – fourplex (owner must occupy one unit)
  • Single family Condominium – with FHA approval
  • Single family Townhouse – with FHA approval

Conventional Mortgage | Loan Limits

Conventional loans offer Standard Balance and High Balance financing options.  These loan limits are standard across the board regardless of State or County.

  • Hawaii: 1 unit: $417,000 2 unit: $533,850 3 unit: $645,300 4 unit: $801,950
  • Hawaii: 1 unit: $625,500 2 unit: $800,775 3 unit: $967,950 4 unit: $1,202,925

Conventional Mortgage | Waiting Periods after Credit Hardship

  • 4 Years from Discharge of Chapter 7 Bankruptcy
  • 2 Years from Discharge of Chapter 13 Bankruptcy
  • 7 Years from Foreclosure
  • 2 Years from Short Sale or Deed in Lieu of Foreclosure with minimum 680 credit score and 20% down payment
  • 3 Years from Short Sale or Deed in Lieu of Foreclosure with minimum 680 credit score and 10% down payment

This material is not from HUD or FHA and has not been approved by HUD or a government agency © Point Financial Kailua-Kona. All Rights Reserved.  Website powered by Ziemelis Communications