There are 2022 Fannie Mae Down Payment Guidelines that potential home buyers need to abide by in order to get approval for a conventional loan. First of all, in almost all situations, down payments are required on every home purchase for a conventional loan, and there requirements change for the different types of purchases: Owner occupied, multi-unit property, second homes, and investment homes. 2022 Fannie Mae Down Payment Guidelines also have different loan-to-value (LTV) requirements when it comes to refinances and cash-out refinances.
2022 Fannie Mae Down Payment Guidelines now offers 3% down payment option on conventional loans for first-time home buyers. If you are not a first-time home buyer then 2022 Fannie Mae Down Payment Guidelines requires that you put 5% as your down payment. Unlike in years past, there are different requirements when using gift funds as a source for your down payment. No matter which conventional loan and down-payment option you are going with, 100% of the down-payment can be gift funds as long as they are going towards the purchase of a single family home that the borrowers will be living in as well.
When looking at 2022 Fannie Mae Down Payment Guidelines you need to realize that there are 3 different types of mortgage loan limits categories: conforming, high-balance, and jumbo. Conforming mortgage loans are those that need to ensure they are in conjunction with Fannie Mae or Freddie Mac guidelines and this means that the maximum amount of the loan is $417,000.
High-balance loan limits are considered for all loans between $417,000-$625,500. Fannie Mae and Freddie Mac determine the high-balance loan limits depending on where in the country the property is located. For example, a lot of the counties in California are considered high-cost areas due to the fact that housing costs are extremely high compared to the rest of the US.
Jumbo mortgage loans by definition do not adhere to Fannie Mae or Freddie Mac lending guidelines and are therefore in a category by themselves. These loans can also be considered non-conforming loans as well. Jumbo mortgage loans are those that are over $417,000 limits instituted by Fannie Mae but can be as high as the millions of dollars.
For the different types of conventional loans offered by Fannie Mae, there are different down payment guidelines for the different loan product. All of the different down payment guidelines have different loan-to-value or LTV requirements.
Fannie Mae categorizes multiple financed properties differently. If a person owns 5-10 financed properties the down payment of 25% is required or a 75% LTV. In addition to the increased down payment requirements, there is a minimum FICO score needed of 720.
If you need help with different conventional loan products please reach out to a loan officer who has plenty of experience in this area. I can be reached any time at 888-900-1020, by email at firstname.lastname@example.org, or you can visit my website www.loanconsultants.org.