Conventional Loan Programs

December 1, 2019

Conventional loans are mortgage loans used to finance 1- 4 unit residential properties. The property types include single family residence, second homes, investment purchases, condos, and multi units. These loans must conform to the guidelines set forth by Freddie Mac and Fannie Mae. Who are Freddie Mac and Fannie Mae?  They are two government sponsored enterprises (GSEs) that provide liquidity in today's mortgage market. They are publicly traded companies and are the largest source of mortgage money in the United States. An easy way to remember what classifies a conventional loan, is any mortgage loan that is not guaranteed or insured by the US government, such as FHA, VA, and USDA. Conventional loans include conforming loans, high balance conforming loans, jumbo loans and even construction loans. But again, whenever a lender refers to “conventional loans” they are most likely referring to conforming mortgages that are eligible for purchase by Freddie Mac and Fannie Mae.

Conforming Loans

  • New Loan Limit is $510,400- coming 2020
  • Loan to Value Ratio up to 95%
  • Fixed interest rate
  • Fully amortizing period of 30 years 20 year 15 years or 10 years 
  • Flex Term Loans Available to pick your term 30, 28 or 26 etc.
  • All loans originated under this program must receive a DU or LP approval 
  • Loans that require private mortgage insurance also need to adhere to the applicable mortgage insurer’s guidelines and credit scores Conforming ARM product provide a 3/1, 5/1, 7/1, and 10/1 ARM all of which offer a fully amortizing period of 30 years


High Balance Conforming

  • Click Loan Limit to look up your county loan limit
  • High cost county limit is set at $765,600 for 2020 
  • Loan to Value Ratio up to 90%
  • This High Balance product offers both 30 and 15 year fixed fully amortizing terms as well as a fully amortizing 5/1 and 7/1 ARMS.


Jumbo Loans

  • This product is a jumbo product that accommodates loans which do not fall within the
  • standard conforming loan limits. 
  • The maximum loan amount is $2,000,000 
  • This product is available on a 30 year and 15 year fixed rate, 5/1, 7/1 and 10/1 ARM’s
  • All loans must meet the Investor’s requirements
  • Interest only option - Not allowed


HARP 2.0 

  • This program is a loan product that provides a flexible rate/term refinance
  • Unlimited loan to value in some cases
  • Must currently have an existing loan that is owned or guaranteed by Fannie Mae or Freddie Mac. 
  • Product terms offered are 15, 20, and 30 Year fixed rate fully amortizing options and are available on conforming loan limits as well as high balance loans with 15 and 30 years fixed rate terms. 
  • The purpose of this program is to provide a benefit to refinancing for the borrower.
  • The borrower must receive some sort of a benefit in the form of reduced monthly payment or moving to a stable product. 


Home Path® Loans

  • This product provides special financing on purchase transactions that are currently owned by Fannie Mae as a result of foreclosure or other similar action.
  • Loan to Value Ratio up to 97%
  • Fixed interest rate fully amortizing period of 30 years or 15 years 
  • All loans originated under this program must receive a DU or LP approval 
  • No Mortgage insurance required
  • No appraisal required
  • Conforming ARM product provide a 5/1, 7/1 ARM all of which offer a fully amortizing period of 30 years
  • Home Path® is a registered trademark of Fannie Mae.
  • The Home Path® product is currently available for Conforming and High Balance loan amounts however, High Balance loans have more restrictive LTV and FICO score requirements. 

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