Which Home Loan is Right for You?

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1 Conventional Which Home Loan is Right for You? Minimum down payment: 3% for Primary Residences/ investors minimum of 20%, unless condo the down payment = 25% Co-Signers allowed in specific situations Options to avoid mortgage insurance 1) lender paid mortgage insurance (LPMI) financing the MI into the interest rate 2) by doing a first and 2 nd loan combination or 3) putting 20% or more down. For optimal interest rate, credit must be at or above 760. Credit rates increase as credit score decreases below 760. Most investors require a 640 minimum score Gift funds allowed for down payment from a family member or domestic partner Loan limits vary based upon the county where the property is located. (can be found at Jumbo Loans = loan amounts above conforming loan limits for the county where the property is located rates and down payment requirements will be higher on jumbo loans depending on the loan size so please check with Limetree Lending for more details Maximum Seller Concessions on Primary and Secondary Homes o 3% if 10% or less down payment o 6% if 10% or more down payment o 9% if 25% or more down payment Maximum Seller Concessions on Investment Properties = 2% Fannie Mae HomeStyle loans are available for primary residence, second homes and investment properties - allowing clients to roll in money for repairs, remodeling, updating, renovating into loan at the time of purchase or refinance. Contact Limetree Lending for more details on HomeStyle loans

2 o o Chapter 7 bankruptcy: 4 years from discharge date o Chapter 13 bankruptcy: 2 years from discharge date or 4 years from dismissal date o Short sale: 4 years from the sale date of the property o Foreclosure: 7 years from the recording date of the public trustees deed FHA Minimum down payment of 3.5% No investors Co-Signers are allowed Gift funds for entire down payment are acceptable Credit must be a minimum of 640 for market rates (options down to 600 credit score). Alternative credit can be used for borrowers without traditional credit/with no credit scores Will have mortgage insurance for life of loan, despite amount of down payment or equity. Upfront mortgage insurance premium = 1.75% (rolled into loan amount). Monthly mortgage insurance =.85% x Loan Amount/12. If down payment is 5% or more, monthly mortgage insurance is.8% Lending limits vary depending on the county where the property is located (Can be found at Anyone can do a FHA loan, no income limits, does not have to be a first time home buyer, can do multiple FHA loans, but can only have 1 FHA loan at any given time unless relocating. If client is approved FHA, they are eligible for the FHA 203K Loan allowing clients to roll in money for repairs, remodeling, updating, renovating into loan at the time of purchase or refinance. Contact Limetree Lending for more details on FHA 203k loans If purchasing a condo, the condo complex must be approved through FHA. Check with Limetree Lending on the complex s status before submitting an FHA offer

3 o Chapter 7 bankruptcy: 2 years from discharge date o Chapter 13 bankruptcy: Must be discharged or still paying on the bankruptcy if they have paid on time for 12 months and receive permission from the trustee o Short sale: 3 years from the sale date of the property o Foreclosure: 3 years from the recording date of the public trustees deed VA Veterans (must have been active duty for 180+ days, unless National Guard or Reserves must have been active duty for 6 years). No required down payment No monthly mortgage insurance No investors There is a VA funding fee rolled into loan amount. 1st use of VA loan = 2.15% of loan amount, subsequent use = 3.3%. If can prove at least 10% disability, this fee will be waived Credit must be a minimum of 640 Can have multiple VA loans in specific situations Must order appraisal through VA. This can take up to 10 business days, no way to expedite. Once ordered, it cannot be cancelled. Loan limits are the same as the conventional conforming loan limits for the county where the property is located (can be found at Maximum Seller Concessions = 4%

4 o Chapter 7 bankruptcy: 2 years from discharge date o Chapter 13 bankruptcy: Must be discharged or still paying on the bankruptcy if they have paid on time for 12 months and receive permission from the trustee o Short sale: 2 years from the sale date of the property o Foreclosure: 2 years from the recording date of the public trustees deed USDA Property must be located in an eligibly rural area (You can search by the property s address at eligibility.sc.egov.usda.gov >> Property Eligibility >> Single Family Housing) Single Family homes only No Down Payment required Don t have to be a first time home buyer Primary Residence Only Loan limits are the same as the conventional conforming loan limits for the county where the property is located (can be found at >> Data & Tools >> Data >> Conforming Loan Limits) Cannot own other properties No Cosigners Debt to income guidelines are stricter than FHA and Conventional Must fall within income limits (contact Limetree Lending for details) Guarantee Fee of 2% can be financed into the loan Monthly Mortgage Insurance rate =.5% Gift funds, grant funds, MCCs allowed Up to 6% seller concessions allowed

5 o Chapter 7 or 13 bankruptcy: 3 years from discharge date o Short sale: 3 years from the sale date of the property o Foreclosure: 3 years from the recording date of the public trustees deed So which loan is right for you? Find out with our quick, no obligation, no fee, no credit-pull Easy Quote! LimetreeLending.com/Easy Quote Learn how you can save thousands with our No Fee approach to mortgage lending Give us a call