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Loan Programs Features & Benefits


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Blog by Doug Ingersoll | August 19th, 2014


From Sandy Richards, Branch Manager at Pinnacle Capital Mortgage Corp. A good primer on the features and benefits of the various loan programs out there. Sandy can be reached at 602.999.2406

PURCHASE OPTIONS

LOAN PROGRAM

MINIMUM DOWN

PAYMENT (1 UNIT)

MAXIMUM SELLER

CONTRIBUTIONS

UPFRONT MI/

FUNDING FEE?

MONTHLY

MORTGAGE

INSURANCE

ADVANTAGES

Standard

Conventional

Max loan amount in Maricopa County is $417,000

 

**

• 5% owner occupied

• 10% second home

• 20% investment

 

100% of down payment can be gift funds on owner occupied!

• 90.01-95% LTV:3%

• 75.01-90% LTV:6%

• <=75%: 9%

• All non-owner 2%

NO

Yes, for LTV higher than 80%.  Credit, LTV, determine MI fee. Normally much less than FHA loans. MI normally stops at 78% LTV.

Low rates for borrowers

with excellent credit. No

limits on income, area, or

occupancy type.

FHA

Max loan amount is Maricopa County is $271,050

• 3.5% down, owner occupied only  

• Down payment can be as low as $100 if purchasing a HUD owned home.

6%

YES: Up to 1.75% depending

on loan purpose.

YES: 1.3% to 1.35% annual. MI stays for life of loan.

Flexible guidelines,

more forgiving on credit

than conventional, low

interest rates, no reserves

required for 1 to 2

properties.

VA

*Must meet VA eligibility

requirements

 

Conforming and Jumbo loan amounts

• Zero down

• Owner occupied and

only for qualified military

veterans

• Up to 4% of the home price.

YES: Varies according to

down payment, type of

service, and use. Up to

2.4% for first use and up

to 3.3% for subsequent

uses.

NO

No down payment.

Flexible credit guidelines.

USDA

*In eligible areas only

and subject to income

restrictions

Zero down

 

Owner occupied only

 

 
6% Yes, 2% of loan amount.

NO

Annual fee: 0.4% of the

unpaid principal balance.

Paid on a monthly basis.

No down payment

required

JUMBO

Loan amountsover $417,000

Max Combined Loan to Value is 85%

 

6% over 75% loan to value

9% under 75% loan to value

NO

NO

85% CLTV requires a 2nd mortgage

For loan amounts over $417,000 to $2.5 Million