Conventional Loan

If you are looking for a home loan, considering a conventional loan is a great place to start. As America recovers from its’ economic turmoil, equity is slowly returning to the average homeowner. You might want to again consider a conventional loan as your vehicle of choice to the American Dream.

Definition

A conventional mortgage refers to a loan that is not insured or guaranteed by the federal government. A conventional, or conforming, mortgage adheres to the guidelines set by Fannie Mae and Freddie Mac. It may have either a fixed or adjustable rate. The maximum limit for a conforming loan depends on the county and state you live in and can be found here: Fannie Mae Loan Limits.

Conventional loans can be either Fixed or an adjustable rate. Fixed-rate mortgages have a set interest rate for the entire length of the mortgage term which can be between 10 and 30 years. An adjustable-rate mortgage (ARM) has a term of 30 years with a low introductory rate for a fixed period followed by periodic adjustments according to a specific benchmark, typically a specific LIBOR or a T-Bill index.

Scenarios Under Shining Star Funding Conventional Loans

Conventional Loans No MI To 90%

  • Conventional Loans
  • First of 80% upto Conventional Loan Limits
  • Second (HELOC) of 10%
  • Both loans close simultaneously

Breaking up the loan into a 80% first and 10% second gets rid of MI

HARP HARP 2 Open Access

  • Loan should be owned by Fannie Mae or Freddie Mac
  • Fannie or Freddie Mac should have purchased your loan before June 1st 2009
  • Field Waivers for appraisal are offered
  • High Back end ratios possible .Even a 60% backend may be OK
  • Limited income documentation
  • Loans for Owner Occupied and Non Owner occupied available
  • No restrictions to number of properties owned.

Non Occupant Borrowers

  • New !! Non Occupant Co Borrowers OK for Owner Occupied Homes
    • Qualify a Owner Occupied Borrower with a Non Owner Occupied Co Borrower
    • Conventional Loan only
    • Useful when Owner occupant cannot qualify on their own income.

Cash Out; No Waiting

We call it “Delayed Financing”.

Useful when an owner wants a quick close of escrow due to auction or seller requirements or simply to be more competitive in their offer.

We will cash out 1 day after close of escrow.

  • Borrowers should be same as owners on title
  • Own funds to be used for purchase
  • Property should not be secured by any other loan
  • Unsecured loans ,obtained to close cash escrow need to be paid of at time of close of new escrow

Transferred Appraisals

  • Conventional:We  accept previous lender ordered conventional appraisals as well.

Flips

  • Generally one appraisal needed if appraiser provides back up of  reason for increase.We will go with the value per the appraisal

Condos < 51% Occupancy

Owner Occupied Properties

  • Always OK

Non Owner Occupied Properties

  • Allowed with Limited Condo Review DU approvals
  • DU should approve limited Condo Review
  • DU approves limited Condo Review based on Down Payment,Borrower Credit Profile etc

More than 4 Investment Properties

  • We finance upto 10 Investment properties
  • The limit of 10 properties does not include 5 unit+ properties
  • The limit of 10 properties does not include mortgage free properties
  • Minimum 720 Credit Score
  • 25% Down
  • 6 Months PITI Reserve for subject property and 2 months for each financed investment property

1 Year Income Verification

  • One year Taxes for all types of income
  • Subject to Automated Underwriter approval

Condo with Litigation

  • Cannot be structural
  •  Can only be minimal issue/nuisance litigation
  •  All court documents required
  •  Attorney opinion letter required
  •  Verification of full monetary amount of litigation is required
  •  Resolution date of litigation required

Conventional Loan to 95%

  • 5% Down OK for loan amounts up to conforming loan limits ($625500)

Rate and Term Reductions

  • Reduce Rate and save interest over the term of your loan
  • Reduce rate and term to save interest

short-application-blue-buttonphone-call-yellow-button