How do you want to get started?
Quick application
With Millennial Home Loans quick online loan application, determining if you qualify for a Conventional Low Down Payment Loan and for how much, has never been easier.
Talk to a Conventional Low Down Payment Loan Mortgage Expert
Not ready to apply online? No problem. Answer a few questions, and a Conventional Low Down Payment Loan Mortgage Expert will call you back.
Conventional Low Down Payment Loan.
Down Payment As Low 3%
Use the Fannie Mae HomeReady, Freddie Mac HomePossible, or HomeOne Loan to Achieve Your Dream of Homeownership
3% Down Loan Program Guidelines
Loan Purpose
- Purchase
- Refinance: Limited Cash Out Refinance
Credit Profile
- 620 minimum middle credit score for all borrowers on the loan
- Desktop Underwriting findings must be “Approved/Eligible” and Loan Prospector findings must be “Accept”
- Waiting period after a major negative credit event
| Conventional Loan Type | BK – Chapter 7 | BK – Chapter 13 Discharged | BK – Chapter 13 Dismissal | Foreclosure* | Short Sale, Deed-In-Lieu, Pre-Foreclosure* | Modified Mortgage* |
|---|---|---|---|---|---|---|
| Standard | 4 years | 2 years | 4 years | 7 years | 4 years | 2 years |
| With Extenuating Circumstance | 2 years | 2 years | 5 years | 3 years (requires 10% down) | 2 years | No waiting period |
* If a property was included AND surrendered (i.e. property wasn’t retained and the debt wasn’t reaffirmed) in a Chapter 7 Bankruptcy, the borrower may potentially be able to defer to the Chapter 7 waiting period Vs. the Foreclosure waiting period.
Income Restrictions
- There are no income restrictions for the Freddie Mac Home One loan program
- Fannie Mae Home Ready and Freddie Mac Home Possible Loan programs restrict household income to 100% of the AMI for the property location
- Income is based on income of the borrowers on the loan, including co-signers if allowed
- Income of the household is not evaluated
- Lookup tools to determine income restrictions:
- Fannie Mae HomeReady: https://homeready-eligibility.fanniemae.com/homeready/
- Freddie Mac Home Possible: http://www.freddiemac.com/homepossible/eligibility.html
Loan Amount
- Loan amount not to exceed 2019 conventional loan limits of $766,550 or if the property is in a High Balance area the FHFA Conforming Loan Limits
Ratios
- As determined by Automated Underwriting System. Requires a Desktop Underwriter “Approved/Eligible” and Loan Prospector findings must be “Accept” findings
Property Type
- Owner-occupied only
- 1 to 4 unit properties
- Fannie Mae/Freddie Mac approved condos
- PUD’s (i.e. Townhomes)
- Log cabin homes provided Appraisal Report lists other comparable log cabin homes that have recently sold in the area
<h3″>Documentation
- All loans must be fully documented per Agency Guidelines
- For Self Employed borrowers, in addition to Agency Guidelines, two years of the tax returns (personal and business) along with a year-to-date profit and loss (unaudited)
Down Payment/Closing Costs – Purchase
- Minimum down payment on a purchase transaction and equity position on a refinance transaction, based on transaction type:
- Primary residence:
- conventional loan limits: 3% (requires that all borrower(s) occupy the property and for purchase transaction that at least one borrower must be first time homebuyer)
- high balance loan limits: 5%
- conventional loan limits – two to four-unit property: 5%
- Primary residence:
- Seller contribution toward buyers closing costs and escrows from 3 to 6% of the purchase price
Terms
- Amortization period: 15 and 30-year fixed rate
