Conventional Loans
Conventional loans are a popular choice for borrowers who meet certain credit and income requirements. These loans are not backed by the government, but rather by private lenders, and offer numerous benefits, including competitive interest rates, flexible loan terms, and options for both fixed and adjustable rate mortgages.
Conventional Guidelines
- Maximum loan amount: $766,550 (or county maximum for high balance areas)
- Short Sale: 4 years (or possibly 2 years if approved by the AUS)
- DTI: 50% with AUS approval
- Minimum down payment: 3%
- Maximum LTV: 97%
- Maximum number of financed properties: 4
- Minimum reserve requirements: Determined by AUS
- Minimum credit score: 620
Bankruptcy
- Chapter 7 (4 years seasoning or 2 years if approved by the AUS)
- Chapter 13 (2 years seasoning from discharge or 4 years from dismissal)
Foreclosure
- 7 years seasoning ( or possibly 3 years if approved by the AUS)