Lending limits and guidelines for Conventional Loans. Conventional Loans are purchased from the Mortgage Companies by FNMA (Fannie Mae) & FHLMC Freddie Mac).
Down Payment MinimumsMinimum down payment for an owner-occupied residence (first time home buyer) 3%
Minimum down payment for an owner-occupied residence (NON-first time home buyer) 5%
10% for second home.
15% for investment home.
PMI (Private Mortgage Insurance) RequirementsRequired on any home where down payment is less than 20% with options to avoid a monthly premiums with less than 20% down
Seller Contribution Limits3% maximum on LTV (loan to value) of 90.01% or more
6% maximum on LTV (loan to value) of 90% or less
May add usual and customary on top