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. If market interest rates rise you will have the security of knowing that your payments will not.

Initially, the bulk of your mortgage payment will be applied to your interest, as a result tax benefits are high in the early years. (Consult your tax advisor).

Disadvantages:

Because you are paying primarily interest at the beginning of the life of the loan you will build your equity slower than a 15 year term.

Typically, the interest rate will be slightly higher than a Balloon or ARM loan at the beginning of its term.

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