These loan programs are for FNMA or FHLMC loans. These are the
typical loans that banks and other financial institutions offer their customers.
The standard ratios for these programs are 28% / 36%, which means
that no more than 28% of your monthly gross income can be for your mortgage
payment and no more than 36% of your monthly gross income can be for all
other debts, which include car loans, student loans, credit cards, etc.
However, there are offsetting factors to these
standard ratios such as:
- High Credit Scores
- Good Reserves (Savings)
- Low LTV (Loan To Value)
- Short
Term Mortgage (10 or 15 Year Mortgage)
These programs are for borrowers that have very good or perfect credit
over the past 24 months. Credit scores are a primary factor in determining
whether you qualify or not. Click here to see
an overview of the credit score process. You must have a minimum credit
score of 620 to even begin to qualify for these programs. In the event
your scores are below 620, we offer sub-prime programs to people that cannot qualify for our
conventional programs These loan programs have the best interest rates
available. Contact one of our Loan Officers for more details.
You must also have a good and stable job history over the past 2 years.
In the event that you have been in your current job less than 2 years,
you will need to provide information on who you worked for before.
Savings accounts
are also an important part of these programs. If you are buying a
home, at least 5% of the sales price must be in a bank account in your name
for the past 60 days. You will be asked to explain all large out of the
ordinary deposits during that time. You must also have in reserve
an amount equal to 2 months of mortgage payments. Any of these types
of accounts are acceptable:
- Checking or Savings Account
- IRA or 401(k) Accounts
- Investment Accounts
- Stocks
- Bonds
So-called mattress money and cash on hand or not acceptable forms of
funds available for closing and will not be considered under any circumstances.
Private Mortgage Insurance (PMI) is required on all loans that have a
Loan to Value ratio (LTV) of 80.01% or greater. The monthly PMI payment
is included in your monthly mortgage payment and is typically .38 for every
$1,000 of your mortgage amount.
Federal laws allow you to have the PMI automatically canceled when the
LTV falls to 80.00%. Click here to find out how to accomplish this.
