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Conforming Loans - Second Mortgages

Conforming Loans

You can scroll down this page or use these links to jump to information on the following types of Conforming Loans:

FNMA Conventional 30- and 15-Year Fixed Rate
FVA 30- and 15-Year Fixed Rate
State VA (Wisconsin only)
WHEDA Home Program (Wisconsin only)

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FNMA Conventional 30- and 15-Year Fixed Rate
Description:
Fixed rate product with the option of 15- or 30-year terms. The interest rate remains fixed for the life of the loan. Loans are not assumable and do not contain a prepayment penalty.


Single Family
2-4 Units
Condominium/PUD
Owner-Occupied:

Second Homes:

Investor:

Eligible for Refinance:
Owner-Occupied:

Investor:

Underwriting:

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FVA 30- and 15-Year Fixed Rate - Federal VA
Description:
A fixed rate loan with the option of a 15- or 30-year term. The interest rate remains fixed for the life of the loan. This loan is guaranteed by the VA. This loan is assumable and does not contain a repayment penalty.

Eligible Properties:
Single Family
2-4 Units
Condominium/PUD (Must be FVA approved)
Modular home

Max LTV: 100%

Underwriting:
VA Automatic
Buydowns are underwritten at the note rate.
Ratios: Veterans must meet residual income requirements and 41% debt ratio.

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State VA (Wisconsin only)
Description:
Since 1974, the State of Wisconsin, Department of Veterans Affairs, has provided low interest fixed rate mortgages to eligible state veterans. State VA loans are available for a term of 15, 20, 25 or 30 years.

Eligible Properties:
Single Family
2-4 Units
Condominium
Loan Limits:
2.5 times the borrower's annual income or 2 times annual income plus land value.

No income limit for "qualified" veterans (i.e., those who first went on active duty before 1977 and have been off active duty for less than 30 years).

Interest Rates/Fees:
1.00% Origination Fee under the many Bond Issues. The 1.00% can be paid by the veteran or the seller.

Underwriting:
Ratios: 25/35%
These ratios can be exceeded, however, there must be a down payment of at least 7.5%.
MI Requirements:
N/A

State of Wisconsin, Department of Veterans Affairs
30 West Mifflin Street
Madison, WI 53707-7843

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WHEDA Home Program (Wisconsin only)
Description:
In April 1982, the Wisconsin Legislature established the Home Ownership Mortgage Loan Program, the "Home Program", which offers 30-year mortgage loans at below market, fixed interest rates to low and moderate income individuals and families. The program is available for residents who have not had an ownership interest in a principle residence in the three year period just prior to their application for a Home Program loan. However, if the property being purchased is located within a HUD designated area of chronic economic distress ("target" area), or the residence will be the subject of major rehabilitation, the three year requirement will be waived.

The Home Program is administered by the Wisconsin Housing and Economic Development Authority (WHEDA), and is funded by the sale of tax-exempt and taxable bonds. WHEDA loans are available for a term of 15, 20, 25 or 30 years.

Eligible Properties:
Single Family
2 Unit or Duplex
3-4 Unit (Must be at least 5 years old)
Manufactured Homes
For any multiple family dwelling, at least one unit must be the borrower's primary residence.

Underwriting:
Rental income from Subject Property:
The gross rental income from the Unit(s) not occupied by the borrower(s) should be verified by a copy of the current lease or a statement from the appraiser establishing the fair market rent.

Income Limits:
Refer to the Income limits for your area.

Gifts:
Fully gifted down payments are allowed if the LTV is 95% or less.

 

Conforming Loans - Second Mortgages

Second Mortgages

You can scroll down this page or use these links to jump to information on the following types of Second Mortgages:

Second Mortgages up to 90% Loan-to-Value
 

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Second Mortgages up to 90% Loan-to-Value
Description:

A second mortgage can be a fixed rate or a Home Equity Line of Credit (HELOC).   A second mortgage can be:

up to a 180, 240 or 360 month amortization,
interest only, or
a payment of 1% or 1.5% of the balance ($100 minimum payment)
If you want a 15 year fixed rate without a balloon, you will have to expect that the rate will be higher.


No cash-out is available in Texas, however, purchase money second mortgages are available. Some cash-out limitations apply on Non-Owner-Occupied (N/O/O) properties.


Most investors who offer 90% LTV financing use empirical/FICO scoring as the only credit determination. If both borrowers are under 620, it is highly improbable that they will approved. If they are under 620 and have ever had a bankruptcy, they will probably be denied on any CLTV over 85%.

Eligible properties:

1-2 family Owner-Occupied (O/O)
Condominium
3-4 family O/O (exception basis)
Second home (LTV restrictions apply)
Non-Owner-Occupied (N/O/O)  -

 
       Now lending 80% LTV on Investment properties

Loan Limits:

Minimum of $5,000
Maximum of $100,000 (or higher on an exception basis)

Owner Occupied Maximum LTV Investor N/O/O Maximum LTV
Single Family 90% 1-4 Unit 90%
Condominium 90% N/O/O Condominium 80%
Second Home 90%    


Ratios and Rates:

We use many different investors in many different markets. Most will allow a 50% back-end ratio. Every investor grades a submission differently, however, an approximate quote on a HELOC (not a fixed rate) would be:

80.00% or less LTV: Prime plus 1
80.01% to 90% LTV: Prime plus 2
90.01% to 100% LTV: Prime plus 3

 

Conforming Loans - Second Mortgages

NMLS# 289939
213 Front  Street, Beaver Dam, WI 53916       920-887-9525