Conventional Mortgage Loan Updates

Getting conventional financing? How about a 15 year fixed-rate mortgage or a 30 year fixed-rate mortgage? Depending on your loan to value, new underwriting guidelines might affect your ability to get financing. This is update is accordance with purchases and refinances.

Following are some of the conventional mortgage loan updates as of October 8, 2011.

  • AVM (automated valuation model) is required on mortgage loans where loan to value’s are greater than 70%. This Fannie Mae/ Freddie Mac requirement states the appraised value must scrubbed against an AVM. The appraisal value must be within 15% of the AVM, otherwise a desk review is required to validate the property value.
  • If business assets are used for closing, you will need a full two years of business tax returns for review by the underwriter in order to analyze the cash flow of the business.
  • Non-Occupant Co-Borrowers -the occupant borrower must contribute 5% to the transaction before any assets of the non-occupant can be used. Chat with your loan officer.
  • Delayed Financing Cash Out refinance option to the Refinance section. This a fantastic mortgage loan allowing you to re-mortgage your cash from a free and clear property you just bought.

Find a competitive mortgage rate for your conventional mortgage loan. Choose from a variety of fixed rate mortgages now. See if these new conventional mortgage loan updates affect your purchase or refinance.

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