Conventional Loans
The Conventional Loan Program guidelines are set by Fannie Mae and Freddie Mac. It is the only conforming program that allows three occupancy types: Primary Homes, Second Homes and Investment Properties.
We offer Purchase, Refinance, Construction-to-Permanent, HomeStyle Renovation, and Jumbo loan programs. Below are some basic guideline requirements set by Fannie and Freddie based on different types of buyers.
Visit the Down Payment Assistance page for information on special programs to help you get into your first home!
First Time Homebuyers
A First Time Homebuyer (FTHB) is anyone who has not had any ownership interest in any property in the past three years.
- Potential buyers can buy their primary home with as little as 3% down. 2-4 unit properties require higher down payments.
- A 620 FICO score is required, without exception. Some Down Payment Assistance Programs require higher scores and lower debt to income ratios to qualify for those programs.
- Debt To Income Ratios cannot exceed 50%.
- Mortgage insurance is required for loans with less than 20% down. The PMI is directly tied to credit score and down payment. A borrower with 3% down and 620 score will pay more for mortgage insurance than a borrower with 15% down with an 800 score.
Non-First Time Homebuyers
Buyers who already own a home or have had ownership interest in the past three years are not considered First Time Homebuyers.
- Potential buyers can buy their primary home with as little as 5% down on 1-unit single family homes.
- A 620 FICO score is required, without exception.
- Mortgage insurance is required for loans with less than 20% down.
- The renovation program requires higher scores and the down payment amounts.
Second Homes
A second home, as defined by Fannie Mae, is a home in which must be occupied by the borrower for some portion of the year, must be suitable for year round occupancy, and has exclusive control over the property. It can only be a 1-unit, single family home. To purchase a second home, the buyer must have:
- 620 FICO
- 10% Down
For refinances, the LTV can be no greater than 75%, which means at least 25% of the value must remain in the home after any cash-out and closing costs
Investment Properties
An investment property, as defined by Fannie Mae, is a home in which must be occupied by the borrower for some portion of the year, must be suitable for year round occupancy, and has exclusive control over the property. It can only be a 1-unit, single family home. To purchase a second home, the buyer must have:
- 620 FICO
- 20% Down
- For refinances, the LTV can be no greater than 75%, which means at least 25% of the value must remain in the home after any cash-out and closing costs.
- Existing or Proposed income can be used as qualifying income.