Conventional Loans are flexible, have lower costs, and come with rates that make this an option of choice for the majority of loans. These loans are also called conforming loans because they conform to standards set by Fannie Mae and Freddie Mac.
◊ Used for primary residence, second home, or rental/investment property.
◊ Maximum loan amount $453,100.
◊ Are available in fixed rates, adjustable rates (ARMs), and offer many loan terms from 10 to 30 years.
◊ Down payments as low as 1% and 3% with no upfront mortgage insurance.
◊ No monthly mortgage insurance with a down payment of at least 20%.
◊ Mortgage insurance costs can be lower than FHA depending on your credit score.
◊ Mortgage insurance can be cancelled when home equity reaches 20% without the need to refinance.
60 days of bank statements, all pages.
30 days of paystubs.
If W2 employee, 2 years tax returns including W2s.
If self-employed, two years tax returns. If you have been self employed for 12 months, you’ll need to wait another 12 months.
Social security, retirement, and/or pension award letters and 2 years’ 1099s.
Rental agreements for any investment properties currently owned.
Bankruptcy and Foreclosure Waiting Periods
Chapter 7 or Chapter 11 Bankruptcy: Four (4) years from the date of discharge.
Chapter 13: Two (2) years from the date of discharge.
Short Sale/Deed in lieu: Four (4) years from completion date. Can be shortened to two (2) years with extenuating circumstances*.
Foreclosure: Seven (7) years from completion date. Can be shortened to three (3) years with extenuating circumstances*.
*Extenuating circumstances are described as one-time occurrence events that are beyond the borrower’s control resulting in sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations. Must be able to document circumstances. Exampled include death or serious illness of a wage earner. Divorce, inability to sell a property, or job relocation out of the area do not qualify as extenuating circumstances.
Call Multiline Mortgage Services for loan pre-qualification in 15 minutes or less.