 First Time Home Buyer Education Center
Icon Mortgage Lending is Mid-Michigan's most experienced First Time Home Buyer Team. This page is to help pass that experience and knowledge on to you and empower you to become the most savvy buyer that you can possibly be!
First Time Home Buyer: Conforming at a glance
The following was a general overview of the Conforming loan programs such as those offered by Fannie Mae or Freddie Mac and a guide to figure out if this is the loan program for you.
Availability: Available in all areas.
Type of Homes they finance: Single Family Properties and Multi-Family Properties will qualify. Site Condos are viewed the same as Attached Condominium Properties and are acceptable if they are approved condominium projects. You can search approved projects here: ******. Manufactured properties, Modular, Stick-Built, or BOCA-code properties are acceptable in some circumstances but not likely to be accepted. Working Farms, unique properties, and dome-homes will not qualify.
Down Payment Required: 10% or greater in conjunction with Private Mortgage Insurance. 20% to meet conforming loan standards. In general, funds for down payment can be a gift from family.
Private Mortgage Insurance: Emphasis on the “Private” since it is obtained through a private asset insurance company such as MGIC, PMI, RMIC, or RADIAN. Generally 1% is billed monthly, though some discounts can apply. No PMI is required with 20% down.
Interest Rates: Vary greatly between lenders. Careful shopping will be required in obtaining the best interest rates. With a 20% down payment, rates are generally lower than FHA or RD financing.
Maximum Loan Amount: $417,000.
Income Limits: No income limits apply.
Credit Requirement: Varies from lender to lender. In general, a 720 FICO and 3 credit references at least 24 months old with no late payments is required, though a lower FICO is required with a down payment of 20% or greater. 36 months from Bankruptcy or Foreclosure with 3 credit references established after the discretion.
Reserves: Varies between lenders, but in general, 2 months or greater of mortgage payments are required. Can come from retirement savings, checking or savings account.
Repair Escrow: Acceptable with certain programs, but good luck finding a lender that accepts them.
General Overview: For borrowers with great credit history and available down payment sources. Interest Rates will blow away government financing if you have the means to qualify.
Back to the Education Center
Call Today toll-free at 866-342-5966
or Local: 810-953-4266
As Featured On:
|
|
|
Icon Mortgage Lending
Certified By:
The Icon Mortgage Lending Team is comprised ONLY of Nationally Certified Mortgage Loan Originators approved through the NMLS Nationwide Mortgage Licensing System
|
|
