Conventional Low Down Payment Loans. Down Payments As Low As 5%!

5% Down Conventional Loan Program Guidelines

Loan Purpose

• Purchase
• Refinance: Limited Cash Out Refinance

Credit Profile

• 620 minimum middle credit score for all borrowers on the loan
• Desktop Underwriting findings must be "Approved/Eligible" and Loan Prospector findings must be "Accept"
• Waiting period after a major negative credit event:

  Conventional Loan Type	BK – Chapter 7	BK – Chapter 13 Discharged	BK – Chapter 13 Dismissal	Foreclosure*	Short Sale, Deed-In-Lieu, Pre-Foreclosure	Modified Mortgage
  Standard	4 years	2 years	4 years	7 years	4 years	2 years
  With Extenuating Circumstance	2 years	2 years	4 years	3 years (requires 10% down)	2 years	No waiting period

  * If a property was included AND surrendered (i.e. property wasn’t retained and the debt wasn’t reaffirmed) in a Chapter 7 Bankruptcy, the borrower may potentially be able to defer to the Chapter 7 waiting period Vs. the Foreclosure waiting period.

Loan Amount and Down Payments

• Loan amount not to exceed 2018 conventional loan limits of $647,200 or if the property is in a High Balance area the FHFA Conforming Loan Limits
• Minimum down payment based on property type:
  • Primary residence:
    • 1 Unit - 5% down
    • 2 Unit – 15% down
    • 3-4 Units – 25% down
  • 2nd Home: 10% down
  • Non-owner Occupant:
    • 1 Unit – 15% down
    • 2-4 Unit – 25% down

Ratios

• As determined by Automated Underwriting System. Requires a Desktop Underwriter “Approved/Eligible” and Loan Prospector findings must be "Accept" findings

Property Type

• Eligible property types:
  • Owner-occupied only
  • 1 to 4 unit properties
  • Fannie Mae/Freddie Mac approved condos
  • PUD's (i.e. Townhomes)
  • Hobby Farms permitted. Call for details
  • Log cabin homes provided Appraisal Report lists other comparable log cabin homes that have recently sold in the area
• Ineligible property types:
  • Condotels
  • Timeshares
  • Cooperatives
  • Commercial property types
  • Land
  • Manufactured housing

Co-signers

• Non-occupant co-signers are permitted for primary residence purchases

Gifts/Down Payment

• Owner occupied 1 unit property – entire down payment can come from a gift
• Owner occupied 2 to 4 unit property and 2nd home – minimum 5% down payment must come from the borrowers own funds
• Owner occupied and 2nd home – if gift is 20% or more, then there is no minimum borrower down payment requirement
• Non-owner occupied properties – no gift giving allowed
• Gift of equity permitted for primary and 2nd home purchase

Seller Closing Cost Assist

• Owner occupied and second homes:
  • Less than 10% down – 3% max seller assist
  • More than 10% down - 6% max seller assist
  • More than 25% down – 9% max seller assist
• Non-owner occupied:
  • 2% max seller assist

Documentation

• All loans must be fully documented per Agency Guidelines
• For Self Employed borrowers, in addition to Agency Guidelines, two years of the tax returns (personal and business) along with a year-to-date profit and loss (unaudited)

Terms

• Amortization period: 30, 25, 20, 15, 10 year fixed rate and 10, 7, 5, 3 year adjustable rate