Conforming Loan Purchase Transaction -using Gift Funds:
(partial summary)
- Fannie Mae and Freddie Mac eligible (call me for the program differences)
- Primary residences
- Purchase transactions
- Expanded debt ratio allowed with Approve/Eligible; LP-Accept
- Reduced MI Coverage available
- Cash on hand may be acceptable for down payment and closing costs-subjective
- Fixed rate 95% LTV/CLTV
- ARMs 90% LTV/CLTV
- Pre-Purchase Home buyer Counseling may be required (call me for details)
One of the advantages over a conforming loan vs. FHA loan is the lower mortgage insurance requirements. FHA loans generally require a much higher monthly mortgage insurance premium AND an up front mortgage insurance premium of 1.75% on most FHA Single Family forward loans. (Read more about how mortgage insurance works HERE)
FHA loans will allow Gift funds and you would only have a 3.5% minimum investment. However, if you can come up with the additional 1.5% for down payment, you may be eligible for better overall loans terms utilizing a conforming loan.
As with any mortgage transaction, there are many factors which will contribute to the final approval. And remember - DO NOT make any major financial changes when you are in the middle of a mortgage transaction. Lenders can and will re-pull credit to confirm no additional debt has been taken out.
Until Next Time,
480-385-1422 (office)
480-385-1450 (Fax)
602-930-2529 (cell)
NMLS #80917
CA-DOC 80917
AZ LO #0920382
Remember, every individual mortgage situation is different and unique -just like you are. Please contact me for a no obligation review of your mortgage situation. I am happy to help YOU.
Mortgage approval of your income, assets and credit are available on purchase transactions. GET Pre-Approved today before you submit your offer letter on a home purchase. It is Fast and Easy!
