FHA / Conforming / High Balance / Jumbo - Major Differences
There are many differences with all of these mortgage products, but I just wanted to point out some of the major differences, that I get a lot of questions on.
FHA Financing owner occupied only! Up to 4 units.
96.5% LTV on up to 4 units
Only allow a max of 4 properties, with a total of 7 units, including subject.
Drawback of Mortgage Insurance Premium higher than Premium Mortgage Insurance, and MIP is for life!
Minimum of 600 credit score
FHA Basic standard mortgage limits are:
Single - $275,665
Duplex - $352,950
Triplex - $426,625
Fourplex - $530,150
Conforming Financing is with the standard conforming ceiling limits.
Primary Financing - unlimited
Investment Financing - up to 10 mortgaged properties
Minimum of 620 credit score on the first 6 financed properties and a 720 on properties 7-1 0
Conforming Look Up Mortgage Limits.
Fannie Mae/Freddie Mac standard mortgage limits are:
1 unit - $424,100
2 unit- $543,000
3 unit - $656,350
4 unit - $815,650
High Balance Financing - between standard conforming limit and your area's ceiling limit.
Primary Financing - unlimited
Investment Financing - up to a maximum of 6 mortgaged properties
Minimum of 620 credit score on the first 6 financed properties and a 720 on properties 7-1 0
Conforming FHA Basic High Cost area limits are:
Single - $636,150
Duplex - $814,500
Triplex - $984,425
Fourplex - $1,223,475
Maximum Conforming limits are below (If Your Area Qualifies, For Specialty Financing);
Honolulu; Kalawao, Maui; Kauai;
1 unit - $721,150 1 unit - $657,800 1 unit - $713,000
2 unit - $723,050 2 unit - $842,100 2 unit - $912,750
3 unit - $1,115,800 3 unit - $1,017,900 3 unit - $1,103,350
4 unit - $1,386,650 4 unit - $1,265,000 4 unit - $1,371,150
Jumbo Financing - Not backed by Fannie Mae and Freddie Mac and has it's own set of rules. This financing option is above the ceiling conforming limit.
700 - 720 required credit score
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