Loans today are full doc loans. Buyers are required to show proof of income and down payment. These are all FULL DOCUMENTAION loans (showing W-2’s, YTD paystubs, Tax Returns, assets, etc..)
Conventional Loans (Fannie Mae, Freddie Mac)
10% Minimum Down payment required (20% on condos and jumbo)
Very few lenders have 5% down on Single family homes (credit must be stellar)
Down payment must be sourced and seasoned for minimum 2 months and come from the buyer
3% max seller concessions
Mortgage insurance is required
Impounds are mandatory if over 90% LTV
VA Loans
NO Down payment required
4% max seller concessions (seller can pay off debt of veteran to qualify/ up to the 4%)
NO mortgage insurance
Impounds are mandatory
Up to $1M, but buyer must pay 25% down payment on loans over $417K of the purchase price.
Funding fee of 2.15% for 1st time users (if veteran has an paid disability from the military- this fee is waived)
Not fico driven- makes qualifying easier than conventional loans
Certain fees the veteran cannot pay (seller must pay)
Co- borrower’s must be married to borrower
If married borrower, co-borrowers’ credit (debts) must be included regardless if they are on the loan
FHA Loans
3.5% minimum down payment required
6% max seller concessions
Mortgage insurance is required (1.75% upfront MIP and .55% monthly)
Mortgage insurance is required on any FHA loan, regardless of LTV.(except 15 yr fixed)
Impounds are mandatory if high LTV’s
Not fico driven- makes qualifying easier than conventional loans
Non-traditional credit allowed (if buyer doesn’t have credit, then we can use cell phone bill, water bill, electric bill, etc…)
Non-occupying co-borrowers allowed to qualify
If married borrower, co-borrowers’ credit (debts) must be included regardless if they are on the loan.
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