Based on the number of emails that I received we are not ready to move to round 2 of our competition. There are many people that are not aware that Fannie Mae offers 3% down on purchases. The maximum loan to value for single family purchases is 97%. The minimum amount down for FHA purchases is 3.5% down. Some of the real differences will be highlighted in tomorrow's post when we factor in the different costs of mortgage insurance. For more information on these two programs please contact me.
See the attached chart for Conventional loans:
Units Loan To Value Credit Score
1 97% Fixed 620
90% ARM
2 85% Fixed
75% ARM
3-4 75% Fixed
65% ARM
See attached chart for FHA loan:
1-4 96.5% 620
There are some circumstances where both Conventional and FHA allow a combined loan to value that exceeds the loan to value limit. On a purchase FHA will allow subordinate finance as long as the maximum combined loan to value does not exceed 100%, loan limits are not exceeded and the borrower qualifies with the payment on the second mortgage. In a later post we will review the home advantage programs.
Rain in Western Washington, I could have told you that.....
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