Primary and Investment Financing In High Cost Area's......

[Jerry Padilla]

Here is a list of counties with increased conforming limits from 2015-2016

PDF List of Counties With Increased Conforming Limits for 2016

Here is a link with a list of the conforming loan limits for 2016

PDF List of Counties With Conforming Limits For 2016

Here is the site to look up FHA and Fannie Mae/Freddie Mac Loan Limits.

Look Up For FHA and Fannie Mae/Freddie Mac Limits For 2016

You can borrow for up to 10 conventional mortgages, down to a price of 10k, and up to confirming limits in your county. You have the option of a 15, 20 or 30 year term.

You can have an unlimited amount of mortgages and still obtain Primary Residence Financing.

Standard Conforming limits are below;

1 unit - $417,000

2 unit - $533,850

3 unit - $645,300

4 unit - $801,950

Anything above this limit, but below your specific counties conforming limit is considered high balance financing. There are different guidelines for both standard conforming limits and for high balance financing. Jumbo loans are for primary residence only and above conforming limits.

Standard Conforming Limit Financing

For A Fixed Rate Purchase, Primary properties, Mortgages 1-6;

• A SFR requires a LTV of 97%
• A Duplex requires a LTV of 85%
• A Triplex & Fourplex requires a LTV of 75%
• A minimum credit score of 620

For A Fixed Rate Purchase, Investment properties, Mortgages 1-6;

• A SFR requires a LTV of 85%
• A MFR requires a LTV of 75%
• A minimum credit score of 620

For A Fixed Rate Purchase, Investment properties, Mortgages 7-10;

• A SFR requires a LTV of 75%
• A MFR requires a LTV of 70%
• A minimum credit score of 620

High Balance Limit Financing (Within Conforming limit for individual, county specific, & above standard conforming limit)

For A Fixed Rate Purchase, Primary properties, Mortgages 1-6;

• A SFR requires a LTV of 95%
• A Duplex requires a LTV of 85%
• A Triplex & Fourplex requires a LTV of 75%
• A minimum credit score of 620

For A Fixed Rate Purchase, Investment properties, Mortgaged properties 1-5 ONLY ALLOWED. You can not do a high balance loan on an investment property if you have greater than 5 mortgaged properties, including subject property!

• A SFR requires a LTV of 85%
• A MFR requires a LTV of 75%
• A minimum credit score of 620

Here are some answers to FAQ as well;

1. For all 1- to 4-unit investment property transactions, cash reserves equal to 6 months PITI for the subject property are required.

Cash Reserves Required For Other Properties Owned by Investor;

• If the borrower has 1-4 mortgaged properties, an additional 2 months for every other SFR investment property and second home is required and additional 6 months for every other 2-4 unit investment property and second home
• If the borrower has 5-10 mortgages, An additional 6 months for every other investment property and second home.

2. Gift funds are not allowed on Investment property transactions.

3. Escrows for taxes and insurance are required unless otherwise approved by the underwriter.

4. Loans for investment properties are not eligible if the transaction includes non-arm’s length and/or at-interest characteristics

5. Investment property transactions cannot close in trust.

6. Maximum 2% sellers concessions is allowed!!

Fannie Mae's Requirement for 1-4 Mortgaged Properties.

Fannie Mae's Requirements for 5-10 Mortgaged Investment Properties

Freddie Mac Requirements for 1-6 Mortgaged Properties.

These California cities are in the High Cost areas for 2015;

Los Angeles, Anaheim, Long Beach, San Jose, Sunnyvale, Santa Clara, San Francisco, Oakland, Hayward, Santa Barbara, Santa Maria, Santa Cruz, Watsonville

The CA counties are included in the high cost areas;

Alameda, Contra Costa, Los Angeles, Marin, Orange, San Benito, San Francisco, San Mateo, Santa Barbara, Santa Clara, Santa Cruz

These Colorado cities are in the High Cost areas for 2015;

Edwards, Glenwood Springs, Steamboat Springs, Breckinridge

The CO counties are included in the high cost areas;

Eagle, Garfield, Pitkin, Routt, San Miguel

Washington and Arlington - District of Columbia

These Hawaii cities are in the High Cost areas for 2015;

Kahului, Wailuku, Lahaina

The HI counties are included in the high cost areas;

Honolulu, Maui, Kalawao, Kauai

These Idaho cities are in the High Cost areas for 2015; Bailey, Hailey

The ID counties are included in the high cost areas; Blaine, Camas, Lincoln, Teton

The NY NJ PA counties are included in the high cost areas;

Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union, Bronx, Dutchess, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, Westchester

These New York, New Jersey, Pennsylvania cities are in the High Cost areas for 2015;

Jersey City, Newark, New York

Elizabeth City in NC with counties of Camden, Pasquotank, Perquimans

In DC, VA, MD, WV - Washington, Arlington, and Alexandria

In MA - Vineyard Haven - Dukes and Nantucket

Fannie Mae/Freddie Mac High Cost are limits are the same as FHA for 2015. VA is the same as FHA for 2015

FHA and VA are owner occupied and have to be mortgage 1-4. Conventional can be both owner occupied or investment with up to 10 mortgages.

For more information on high cost area, VA Financing - please see one of my other blogs;

VA High Cost Area Financing

For more information on high cost area, FHA Financing - please see one of my other blogs;

FHA High Cost Area Financing

Start The Mortgage Process With Jerry Padilla

At MB Financial we are a small local bank on a National level. We as a Lender offer conventional financing, with very little overlays, and go above and beyond for our clients. We have some of the lowest fees and rates in the industry. I personally am an investor myself and can relate to your financing needs.

• A credit tool to assist with improving your (or your clients) credit score to qualify for financing (Free of Charge)
• Investor loans - Financing for up to 10 investment properties, with Conventional Financing, backed by either Fannie Mae, or Freddie Mac
• Conventional or Refinance
• Cash Out Financing on the first six investment property's and a credit score as low as 620.
• Delayed financing with up to ten mortgages
• Credit scores down to 600 on FHA/VA/USDA loans - primary residence only
• National lender!
• Streamline refinance programs for FHA/VA/Conventional - Save money with less documentation
• Low rates & Low closing costs
• Jumbo Loans, to Sub $100k loans to Sub $50k loans to Sub $30k loans
• I personally am available extended hours
• Opportunity to increase your business to have more capital available for purchasing and rehabbing
• Lender credit available for purchases
• Automated approval system

Our current bank fee's (subject to change)

$995 admin fee

$9 flood cert

$37.50 credit pull

Apply For a Mortgage With Jerry Padilla