Purchases or Refinances: Here's What You Need to Know
Introduction
Qualified Property
One- to two-family residential owner-occupied purchase money or refinances.
Max Loan to Value
Purchase:
- Single family – 95% of sale price
- Condo – 90% of sale price
- Two-family – 85% of sale price
Refinance:
- Single family or Condo – up to 80% of appraised value as "Cash Out"
- Two-family – up to 75% of appraised value as "Cash Out"
- Single family or Condo – 90% of appraised value for "Limited Cash Out"
- Two-family – 85% of appraised value for "Limited Cash Out"
Loan Amount
Minimum – $25,000
Maximum – $806,500; $1,209,750 for high cost areas as designated by Fannie Mae
Term(s)
15-year, 20-year, and 30-year terms are available.
Escrow Account
Required when loan-to-value ratio is 80.01% or higher.
If less than 80% loan-to-value ratio, is based on credit worthiness.
PMI required when loan to value ratio is 80.01% or higher.
Flood insurance required in escrow if property is in a flood zone.
Payment Options
Monthly
Interest Rate Change
Rate remains the same for the first ten years, then adjusts once every six months.
Rate will not adjust below 3.00% APR and will not increase more than 5.00% APR above initial rate at closing.
Proof of home owner's insurance is required.
