Skip to content

Freddie vs Fannie – Which Way to Go?

July 9, 2015


There are many home loan programs available these days.  Every mortgage has a different scenario.  Here are some niches available for conventional financing:

If the gift is less than 20% of the sales price, borrower must contribute own funds equal to at least 5% of the purchase price
Allows blended ratios on non-occupant co-borrowers
Appraisal over 120 days old – Exterior only 2055 allowed to extend beyond 120 days – max date is 240 days
No PIW – Freddie offers an “HVE” on Open Access HARP only
Condo Streamline review to 90%
Max 4 financed properties when subject is a 2nd home or investment prop
Accept responses w/ disputed accounts don’t require confirmation of the accuracy of the disputed tradelines – already included in LP assessment
Cash out Freddie only requires 6 months before the new Note date
Requires 2 years landlord experience to use rental income
Funds received from a wedding allowed as borrower’s own funds
May require rent loss insurance when using rental income to qualify
Up to 50% DTI in most cases
Employment Contracts; start work within 90 days
Gift letters must list the property address being purchased
95% LTV Max on ARMs
Refinance of a restructured mortgage is not eligible
75% LTV on cash out O/O on Super Conforming up to $625k

Minimum borrower contribution from the borrower’s own funds is not required – all funds needed to complete the transaction can come from a gift (1 unit)
Occupying borrower(s) must qualify for mortgage payment (will not blend ratios)
Appraisal over 120 days old – 1004D allowed to extend the validity period – max date is 240 days
Property Inspection Waiver (PIW) may be offered in DU Findings
Condo Limited Review to 80%
If tradeline disputed and delinquency in last 2 years from credit report date, follow instructions on findings
Cash out requires 6 months seasoning before application date
No landlord experience required to use rental income
Funds received from a wedding are still considered a “gift”
Typically does not require rent loss insurance when using rental income (unless DU requires, which is rare)
Up to 45 % DTI unless major compensating factors; good reserves
Employment Contracts; start work prior to close w/VOE from new employer
Gift letters do not have to list the property address
90% LTV Max on ARMs
Restructured loans can be refinanced (restrictions apply)
Max cash out on Fannie High Balance is 60% LTV

Get Pre-Approved Today!  Apply Online for Fast Pre-Approvals

PMC offers free credit enhancement prior to submitting your loan to the bank to ensure you get the best rate possible.  Even 20 points could be .25% better in rate, which equals thousands of dollars on the life of a mortgage loan.  If you have a loan scenario email us at info@pmccanhelp.comPMC Can Help!

Visit Our Website:

FOR A FAST PRE-APPROVAL: Complete a loan application on our website APPLY ONLINE

Job Opportunities? Now is the time to see how PMC Can Help you earn what you deserve!  Visit our Website and apply online today!

Follow our Mortgage on:

Follow our Realty on:

No comments yet

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: