30 Year Fixed Conventional conforming loans are the most common loans people get. They go by many names. "Agency", "FNMA", "FannieMae", "FreddieMac" and more, are the same loans most of the time. You can get other terms such as 15 Year, 10 Year, 20 Year, 25 Year, and any number of years in between. The major key is that these loans meet required 'guidelines' set by the agencies FannieMae and FreddieMac.

 

Interest rates vary by risk as the agencies define it. This is due to Loan Level Price Adjustments and other factors. 'Loan-to-Value' (LTV), credit scores, Loan Purpose, Occupancy, and other specific loan parameters vary the rate and/or costs. An owner occupied SFR purchase with 810 credit score and 40% down, gets a 'better deal' than a 679 score and 10% down scenario. Owner occupied gets better than Investment. Purchase gets better than Cash-Out Refinances.

 

Mortgage Insurance (MI) is required on any conforming loan with less than 20% down. MI is a GOOD THING as otherwise all buyers going conforming would have to put at least 20% down to buy a home. Many times MI on conforming loans can be cancelled after 3-5 years. MI is there even if you're told "There is no MI". There is a type of MI called "Lender Paid" where you pay a higher interest rate and it costs much more than regular MI in the longer run, even though in the short term your monthly payment might be a little lower than with regular monthly MI. Most buyers choose monthly MI as they hope to cancel it within 3-5 years and end up with a much lower payment long term. Be careful to understand all the pros and cons before you move forward. MI is just insurance, and it costs different amounts based on many factors. Just like with interest rates, the lower the risk, the lower the cost of MI. A purchase with 810 credit score and 15% down, gets a 'better deal' than a 679 score and 5% down scenario. Mortgage brokers like PSM have some of the least expensive MI options.

 

Appraisal waivers are possible on conforming loans and PSM has a high success percentage of getting them. There are many factors that go in to getting an appraisal waiver approved, not all of them on the house. Mortgage brokers like PSM, have a leg up on many other lender types as we have less overlays and can run both agency Automated Underwriting systems to see if we can get an appraisal waiver approved.

 

On an owner occupied purchase, gifts are allowed from relatives, and sellers can pay some or all of buyer's closing costs and pre-paids to reduce funds needed to close.

 

While the Seller's guides are 100's of pages long, this brief description are some of the general requirements. There are restrictions and you can't necessarily combine parameters and get a loan. Conventional Conforming Mortgage loans change requirements frequently. Requirements change without notice. Please call us to discuss your situation and goals. It is too complex to try and learn all the nuances on the internet.

 

CONFORMING LOAN LIMITS for 2025, (Price is, or can be, higher)

Closing on these now:

1 Unit      $806,500

2 Unit     $1,032,650

3 Unit     $1,248,150

4 Unit     $1,551,250

 

PURCHASE:

Minimum Down Payment as a percentage of purchase price:

Owner Occupied, SFR, Condo, PUD - 1 unit          3%  (5% if not a First Time Buyer)

Owner Occupied, Duplex - 2 units                         5%

Owner Occupied, Triplex/Fourplex - 3-4 units      5%

Owner Occupied, Manufactured Home                 5%

 

Second Home, 1 unit or Manufactured Home        10%

 

Investment, SFR, Condo, PUD - 1 unit                     15%

Investment, 2 to 4 units                                            25%

 

REFINANCE:

Maximum Loan to Value = percentage of value:

Owner Occupied, SFR, Condo, PUD - 1 unit          97%  

Owner Occupied, Duplex - 2 units                         95%

Owner Occupied, Triplex/Fourplex - 3-4 units      95%

Owner Occupied, Manufactured Home                 95%

 

Second Home, 1 unit or Manufactured Home        90%

 

Investment, SFR, Condo, PUD - 1 unit                     85%

Investment, 2 to 4 units                                            75%

 

CASH OUT REFINANCE:

Maximum Loan to Value = percentage of value:

Owner Occupied, SFR, Condo, PUD - 1 unit          80%  

Owner Occupied, Duplex - 2 units                         75%

Owner Occupied, Triplex/Fourplex - 3-4 units      65%

Owner Occupied, Manufactured Home                 65%

 

Second Home, 1 unit or Manufactured Home        75%

 

Investment, SFR, Condo, PUD - 1 unit                     75%

Investment, 2 to 4 units                                            70%

 

 

Pacific Sunset Mortgage, LLC. NMLS #1086349 ML-5769. Steve Emory Sr Loan Officer NMLS #45523. I am authorized to conduct business in Oregon and Washington States. 15455 NW Greenbrier Pkwy  Suite 100, Beaverton, OR 97006. Certain restrictions apply. This is not a commitment to lend. Applicants must qualify and Not all applicants will qualify. Equal Housing Lender. All opinions expressed by Steve Emory, on this website, on his Facebook pages, are Steve's opinions and do not reflect the opinions of Pacific Sunset Mortgage, LLC. You should not treat any opinion expressed by Steve as a specific inducement to take a particular mortgage or follow a particular strategy, but only as an expression of his opinion. You must make an independent decision regarding mortgages or strategies mentioned on his website. Before acting on information on this website, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial counselor. http://www.nmlsconsumeraccess.org/entitydetails.aspx/COMPANY/1806349