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
• Two-family – 85% of sale price
Refinance:
• Single family – up to 80% of appraised value as "Cash Out"
• Two-family – up to 75% of appraised value as "Cash Out"
• Single family – 90% of appraised value for "Limited Cash Out"
• Two-family – 85% of appraised value for "Limited Cash Out"
Loan Amount
Minimum – $35,000
Maximum – $806,500; $1,209,750 for high cost areas as designated by Fannie Mae
Jumbo loan amounts available to well-qualified borrowers. The interest rate is 0.25% higher than advertised rate.
Term
15 Years
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 life of the loan.
Proof of home owner's insurance is required.
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