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15%
Down Payment CONFORMING FNMA / FHLMC LOANS
Conforming Transaction
The term "Conforming" refers to
the fact that the details of the proposed loan will CONFORM to FNMA (Federal
National Mortgage Association) and FHLMC (Federal Home Loan Mortgage Corp)
underwriting guidelines for the type of property and transaction the loan is
being applied for. The best priced Investment Property Loans with
lower interest rates are obtained through FNMA and FHLMC. FNMA
and FHLMC offer a limited array of loan products for investment property
financing.
Their guidelines require larger
down payments for investment property. Typically 10% to 30% Down
Payment.
The larger the down payment the
better the Interest Rate and Terms will be, however, be mindful that lower loan amounts
can negatively
impact the interest rate on the loan. Typically loans below $100,000 to
$150,000 begin
to have a "Add On" to the cost of the loan. The
standard requirement to waive the requirement of PMI is a 30% Down Payment,
however, in some cases PMI can be waived with only 20% Down Payment.
Loan
Products: 30 Year Fixed
15 Year Fixed
1, 3, 5 & 7 Year ARMs
15% Down Payment
NON-CONFORMING or PORTFOLIO LOANS
N0N-Conforming
Transaction
As opposed to "Conforming" . . .
"Non-Conforming" simply means the details of the proposed loan do NOT
conform to FNMA (Federal National Mortgage Association) and FHLMC (Federal
Home Loan Mortgage Corp) underwriting guidelines for the type of
property and transaction the loan is being applied for. Interest
Rates for non-conforming loan products are typically slightly higher than
FNMA / FHLMC loan terms, however, portfolio lenders offer a Wide Array of
many numerous product types and loan options. Some of which can prove
to be very beneficial and in some cases even preferred to FNMA / FHLMC
products.
Loan
Products: 30 Year Fixed
15 Year Fixed
1, 3, 5 & 7 Year ARMs
INTEREST ONLY
LIBOR ARMS
COFI ARMS
CODI ARMS
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