topic Re: Conventional 97 a unicorn? in Mortgage Loans

Conventional 97 a unicorn?

Anonymous — Thu, 04 Feb 2016 23:11:13 GMT

I read that it is being offered and I have heard that you need at least a 680 mid score.... But I have not heard of or seen anyone actually offering the 97% financing. Has anyone else looked in to this type of loan? Anyone in the process of closing with this loan option?

Re: Conventional 97 a unicorn?

Anonymous — Thu, 04 Feb 2016 23:15:35 GMT

Unless you have a 740-760+ credit score, the PMI and higher interest rate usually aren't worth it.

Re: Conventional 97 a unicorn?

Anonymous — Thu, 04 Feb 2016 23:21:26 GMT

So with out a very strong credit score, fha is really the only way to go for little down? Because I am not a veteran and do live not in an are eligible for usda.

Re: Conventional 97 a unicorn?

Anonymous — Thu, 04 Feb 2016 23:24:44 GMT

@Anonymous wrote:
So with out a very strong credit score, fha is really the only way to go for little down? Because I am not a veteran and do live not in an are eligible for usda.

You can still down a 97% conventional with a lower score, but it is likely the interest rate and PMI will both be higher than an FHA loan.

So FHA is not the only way, but it may make a lot more sense.

Re: Conventional 97 a unicorn?

Anonymous — Thu, 04 Feb 2016 23:25:50 GMT

Thanks for the replies

Re: Conventional 97 a unicorn?

Anonymous — Thu, 04 Feb 2016 23:26:16 GMT

No problem! You can always ask your lender to get you payment quotes for both loan types.

Re: Conventional 97 a unicorn?

cartwrna — Fri, 05 Feb 2016 00:19:34 GMT

My lender offers the 97% conventional, both the Fannie Mae and in house with just 3% down (they service loan for the entire lifetime of it). I went with the 10 year ARM in house with just 3% down. The rate I got was a 4.5% with a 683 midscore. PMI is 67$ a month on a $100,000 loan. If my score would have been 13 points higher, I would have attained 4% for the rate. We are scheduled to close next Thursday the 11th. I'm debating having my lender repull my credit tomorrow as I'm sure I've gained the 13 points needed for the 4%. You need to speak with credit unions, mine offers it but doesn't show it on their webpage or anywhere else. It's one of those things you need to talk to a body about

Re: Conventional 97 a unicorn?

DallasLoanGuy — Fri, 05 Feb 2016 00:44:10 GMT

https://www.fanniemae.com/content/fact_sheet/97-ltv-options.pdf

If you are not a FTHB then there are income limits

Re: Conventional 97 a unicorn?

DallasLoanGuy — Fri, 05 Feb 2016 19:31:33 GMT

also. most lenders will be 680 to get pmi.

i know at least one pmi co will go down to 620

Re: Conventional 97 a unicorn?

Anonymous — Fri, 05 Feb 2016 19:54:08 GMT

Thanks for the reply again. I believe my mid score will be 680 or + by this August when my wife and I are hoping to buy a our first home. The issue is having enough for a down payment and closing cost. Since the beginning of 2014 our savings has been dipped into numerous times for complications during my wife pregnancy, braces for our daughter and satisfying a judgment I didn't know I had (lived in Indiana in 2010 and there delivery laws are almost nonexistent) ... To sum it up, we have not been struggling to live but we are struggling to save. We too live in the Dallas area but we do not live the typical Dallas leisure life of fine dining and multiple car payments. From crunching numbers and looking at loan options, I now think our goal of an August 2016 mortgage may be unrealistic.

Re: Conventional 97 a unicorn?

Anonymous — Fri, 05 Feb 2016 20:02:46 GMT

@DallasLoanGuy wrote:
also. most lenders will be 680 to get pmi.
i know at least one pmi co will go down to 620

Essent MI will always follow AUS approval with no overlays. At least they were that way as of a couple months ago.