The conventional program offers higher loan amounts than FHA and permits second homes and investors.

Eligible Borrowers:

• Homeowners for purchase with 5% down payment, or 5% equity for refinance loans (based on after improved value).
• Second homes with 5% down payment or 5% equity for refinance loans.
• Investors loans with 20% down payment or 20% equity for refinance.

Benefits:

• Only one loan is needed for purchase and home improvements.
• May obtain more funds than with traditional loans by using the improved value of the home (after improvements).
• There are no required improvements or restrictions on the types of repairs allowed.
• Finance up to 6 months of mortgage payments during the renovation/construction period.

Types of Conventional Loans:

• 30 or 15 year fixed rates
• Adjustable rates available

Eligible Properties:

• Single family dwellings
• Townhouse
• 1-4 unit properties
• Condominium

Loan Limits: The down payment requirements for purchase loans is based upon the total cost of purchasing and renovating the home. The equity requirement for refinance loans is based upon the value of the home after improvements.

• Purchase Loans
  • 5% down payment up to $322,700
  • 10%-20% down payment to investors
• Refinance Loans
  • 5% equity payment up to $322,700
  • 10%-20% equity payment to investors