MORTGAGE GUIDELINES

Question 1

What is a Conventional Loan?

Answer 1

A conventional mortgage or conventional loan is any type of home buyer’s loan that is not offered or secured by a government entity. Instead, conventional mortgages are available through private lenders, such as banks, credit unions, and mortgage companies. However, some conventional mortgages can be guaranteed by two government-sponsored enterprises; the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).

Question 2

Conventional Guidelines for Primary Residence

Answer 2

Primary residence

• Min FICO 620
• Min down payment of 5%
• 30,20 and 15 year fixed

Question 3

Conventional Guidelines for Investment Property

Answer 3

Investment property

• Conventional loans only
• Min FICO 620
• Min down payment of 15%
• Requires 6 months reserves

Question 4

What is a VA loan?

Answer 4

A VA loan is a $0-down mortgage option issued by private lenders and partially backed, or guaranteed, by the Department of Veterans Affairs (VA). Eligible borrowers can use a VA loan to purchase a property as their primary residence or refinance an existing mortgage.

Question 5

VA Guidelines

Answer 5

• Min 2 years employment history, except if discharged
• Min FICO 500
• Min down payment of 0%
• 30,25,20 and 15 year fixed