Conforming and Jumbo loan amounts are available. Conforming loan limits are set by FNMA and FHLMC and vary from region to region and the number of legal units in the subject property. If the loan amount requested exceeds these limits it will fall into "Jumbo" loan criteria. The rates and terms for Jumbo loans may be more restrictive.

Property Types – Single family dwellings, eligible condos, PUD's. Properties must meet conforming loan guidelines.

Gifts – All funds can be gift funds if your LTV is 80% or less. Otherwise the borrower needs to provide at least 5% of the cash from their own funds for the transaction.

Assumable – No

Reserves – Typically, 2 months reserves are required. Some programs may waive the reserve requirements while others may require 6 months or more.

Seller Contributions – The maximum is 6% of the lower of sales price or appraised value.

Advantages:

Predictability and Security. Your payments will not fluctuate for the life of your loan.

Interest rates are slightly lower than a 30 year fixed rate.

You will significantly save money in interest costs due to both the shorter term and the lower interest rate.

Own your home "free and clear" in half the time of a 30 year loan.

The principal is paid much quicker resulting in faster equity growth.

Disadvantages:

You will be committed to a higher monthly payment than with a 30 year term.

As a result of the higher monthly payments your qualifying loan amount will be less than a 30 year term.

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