Home Loans in Northern Ky, Cincinnati, Cold Springs, Fort Thomas
This is a type of mortgage in which the underlying terms and conditions meet the funding criteria of Fannie Mae and Freddie Mac and is not insured by the federal government like VA and FHA financing. It allows for financing options up to 97% loan to value (LTV) of the purchase price depending on the customer’s credit score and program.
Other things to consider with conventional financing:
- Conventional mortgages may be fixed-rate or adjustable-rate mortgages.
- Conventional loans generally require larger down payments than government-backed loans.
- Loans with greater than an 80 percent loan-to-value (LTV) ratio will require the borrower to purchase Private Mortgage Insurance (PMI) and you must have a minimum of a 680 score to exceed 80 percent due to the PMI on the loan.
Examples of some conventional programs we offer are:
- Conventional Standard Loan Financing – this allows for up to 95% LTV financing on purchase and rate/term refinances with a 680 score and 80% financing with a 620 score.
- My Community Loan Program –purchase program with more flexible guidelines for customers at < 120% of median income for the area. Other highlights:
- Low mortgage insurance (with no additional loan-level price adjustment [LLPA])
- Financing up to 97% LTV
- Available for two- to four-unit owner-occupied properties (LTV up to 95%)
- Flexibility on credit histories, nontraditional credit accepted (LTV up to 95%)
- Lender Paid Mtg. Insurance Loan Program (LPMI) – For this program, the lender covers the mortgage insurance premium on the loan, thus eliminating the monthly MI payment that is normally required for loan amounts over 80% of the home’s value. This loan program makes sense with higher loan sizes and higher credit scores.
- Home Affordable Refinance Loan Program (HARP I and HARP II) – This program allows customers who have Freddie Mac or Fannie Mae backed loans to refinance over 100% of the home’s value in order to lower their rate even if property’s value has declined and now even if the customer has PMI on their existing loan.
- Home Path Loan Program – allows a borrower to purchase a Fannie Mae-owned property with a low down payment, flexible mortgage terms, no lender-requested appraisal and no mortgage insurance. Expanded seller contributions to closing costs are allowed.
- Low down payment (at least 3 percent) can be funded by the borrower’s own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer.
- No lender-requested appraisal.
- No mortgage insurance; ask your lender for cost details on loans without mortgage insurance.
Jumbo Home Loan Program – This is a specific program for loan amounts over $417,000 for residences in the KY, IN and OH. Jumbo home loans have special pricing outside the standard conventional pricing and often have stricter down payment requirements such as 15-20% down payment required.