2017 Fannie Mae Guidelines On Conventional Mortgage Loans

This BLOG On 2017 Fannie Mae Guidelines On Conventional Mortgage Loans Was UPDATED On September 26th, 2017

30 year fixed mortgage rates on Conventional Mortgage Loans are generally higher than FHA mortgage rates. Mortgage Rates on Conventional Mortgage Loans are generally more sensitive to credit scores and loan to value than government loan programs.

  • Conventional mortgage rates have since been dropping the past several weeks.
  • We now have special conventional mortgage loan programs that can benefit both purchase mortgage loan borrowers and refinance conventional mortgage loan borrowers.

Down Payment Requirements On Conventional Mortgage Loans

We offer conventional mortgage loan programs up to 97% loan to value for primary residential home. The minimum credit scores needed to qualify is 620 FICO.

  • The 620 credit scores are the minimum credit scores required for all occupancy types of conventional mortgage loans.

Types Of Conventional Mortgage Loans 

  • Purchase conventional mortgage borrowers.
  • Limited Cash-Out Refinance mortgage loan borrowers.
  • Cash-Out Refinance mortgage loan borrowers.

Conventional Mortgage Loan Terms

  • 10 year fixed rate.
  • 15 year fixed rate.
  • 20 year fixed rate.
  • 25 year fixed rate.
  •  30 year fixed rate.
  • 15, 30 year fixed for High Balance conventional mortgage loans.

Residence Types

  • Primary residence (owner occupied) which includes single family homes, town homes, and condominiums.  
  • No condo hotel units.
  • Fannie Mae and/or Freddie Mac does not offer financing on NON-Warrantable Condos and Condotel Financing.

Condotel Financing & Non-Warrantable Condominium Loans

Condotel and NON-Warrantable Condo Financing are NOT Conventional Loans. These types of loans are portfolio loans.

  • Condotel units mortgage loans are available on 3/1 ARM, 5/1 ARM, 7/1 ARM portfolio mortgage loan products amortized over 30 years. 
  • Index for Condotel mortgage loans are based on the one year Cost Maturity Treasuries ( 1 year treasuries ) and the margin is set at 3%. 
  • The adjustment rate after the initial fixed rate expires cannot be lower than the start rate.  Please contact me for more information on Condotel mortgage loans at 262-716-8151 or at www.gustancho.com.

Types Of Properties That Can Be Purchased With Conventional Loans

1-2 unit single family residential units.

  • FNMA approved condos and PUDs (check)
  • Manufactured housing.
  • 2nd / vacation homes.
  • Non-Owner occupied – Investment properties.

Loan to Value ( LTV ) : (Standard Primary Residence)

  • 97% for Purchase conventional mortgage loan programs.
  • 97% for Rate / Term refinance conventional mortgage loan programs.
  • 80% for Cash Out refinance conventional mortgage loan programs.

Mortgage Insurance

  • All mortgage insurance will be followed by Fannie Mae’s Automated Approval DU findings. Standard MI coverage required.
  • Lender paid mortgage insurance program available for a slightly higher mortgage rate.
Gustan Cho NMLS ID # 873293

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The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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