BK# 0902429
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| Home / Info for Realtors / Conventional Loans |
Conventional Loans  
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Mortgage InsuranceMortgage Insurance (MI) is required on any mortgage loan that does not have a 20% down payment. Monthly mortgage insurance amounts are added to the borrower's Principal, Interest, Taxes, and Insurance (PITI) payment. The following calculation is how monthly mortgage insurance is determined and approximate factors to use. For exact figures, please contact Lance. Calculation Formula: Mortgage Insurance Factor x Loan Amount / 12 = Monthly Mortgage Insurance MI Factors for Fixed Rate Loans: For Loan to Values greater than 95% Please call Lance For Loan to Values 90.01%-95% .78% For Loan to Values 85.01%-90% .52% For Loan to Values 80.01%-85% .32% Example: Sales Price: $100,000 Down Payment: $5,000 Loan Amount: $95,000 Calculation: Step 1: .78% x 95,000 = $741 (annual mortgage insurance) Step 2: $741 / 12 = $63.70 (monthly mortgage insurance) There is no Up Front Mortgage Insurance charged on Conventional Loans.
Maximum Seller Finance ConcessionSeller Finance Concession is defined as the seller agreeing to pay any of the buyer's closing costs and/or pre-paid items. The maximum amount allowed on conventional loans is based on Loan to Value (LTV). When the LTV is greater than 90%, Seller can contribute nor more than 3% of the sales price to the buyer's closing costs and pre-paid items. When the LTV is 90% or less, seller can contribute no more than 6% of the sales price to the buyer's closing costs and pre-paid items. Please note: any Seller Finance Concession agreed to "in lieu of repairs" should be credit toward the buyer's closing costs. Maximum Seller Concession rules apply.
Termite ReportsThe standard Arizona State Real Estate Contract requires a termite inspection. It is not necessary to obtain a clear termite report on conventional loans. The Buyer may elect to sign a Hold Harmless statement at closing instead of obtaining a clear termite report.
Sellers Documents at ClosingAny conventional loan documents drawn by Nova Home Loans do not require any Sellers' signatures.
Maximum Seller LeasebackA Seller Leaseback consists of anytime the Buyers are not taking immediate possession of the property and the seller will be paying the Buyers for additional time spent in the house (also known as "renting back"). A maximum allowable Seller Leaseback is 60 days for conventional loans.
Down Payment Assistance ProgramsPlease call Lance for details. |
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