This is the standard conventional loan program that most people choose.
It has a fixed interest rate with no prepayment penalty.
This loan has life terms of: 30, 20, 15, and 10 years
For purchse transaction the minimum down payment: 5% of purchase price.
For refinancing and just paying off your current mortgages the typical guidleline
for the allowable mortgage amount is 90% of current market value.
If taking cash out say
to pay off debt or for home improvements the guideline is 80% of current market value.
Closing costs can be paid by seller either by seller concession or adding to sales price.
Properties: 1-4 units
2-1 buydown allowed. This is a temporary interest rate buydown, usually 2% below
market rate.
This allows a borrower to qualify for a little higher loan amount when needed, or to
have a lower inital monthly house payment for the first two years.
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