95% LTV Conventional Mortgage Programs are Back | Home Possible and My Community Mortgage

November 20, 2009

95% LTV is back on Agency Conventional Loans

Borrowers may now get 95% LTV if they meet the following criteria:

95% Purchase and Rate/Term refinances
Specific Affordable Products only (see below)
Borrower does not have to be a First Time Homebuyer to qualify. However , First Time Home Buyer’s must complete training course.
680 Minimum Score Requirement
1 unit property only (SFR and PUDs. Condos maxed at 90% LTV)
2 months. reserves required regardless of AUS findings
3% down payment and reserves must be borrower’s own
Borrowers can only own 1 property (No 2nd homes or rentals)
Full appraisal required regardless of AUS findings
3% Seller Concessions maximum allowed
Counseling only required for First Time Home Buyers
Income limitation waived on MyCommunity program if property is located in a Fannie Neighborhood
Mortgage insurance must be ordered through Genworth (GE)
These Genworth overlays apply to product guidelines
Now available in CA, FL, NV, and AZ
Standard Conforming Fixed is not eligible. Must fit into one of the below programs

Available Programs:
• Freddie’s Home Possible Doc #5335 (Fixed Rate only)
• FNMA MyCommunity Doc #5325 (Fixed Rate, 5 yr ARM and 7 yr ARM

Additional benefits (see product descriptions for full details):
• Reduced MI coverage available (16% MI coverage). This is a great selling tool against FHA! MI is reduced and unlike FHA, the MI may be removed after 2 years if home has appreciated in value. Borrowers completing GE’s Counseling Saver Program may receive additional rate discount