Preferred Financial Group, Inc.

Another Fannie Mae and Freddie Mac difference: Under Fannie, borrower can receive lesser of 2% of the loan amount or $2,000 ‘cash in hand’ at closing; Under Freddie, borrower can receive greater of 1% of the loan amount or $2,000.

Did you know Fannie Mae and Freddie Mac have similar, but subtly DIFFERENT underwriting guidelines? If you don’t qualify for a Fannie Mae loan, you might just qualify for a Freddie Mac loan. Example: Fannie will only allow an ADU with a 1 unit property as the primary; Freddie, with certain requirements, will allow an ADU with 1, 2 or 3 unit primary.

Duplexes, Tri-plexes, and four-plexes are all ALLOWED under the new First Time Homebuyer Program. There’s a 15% down payment requirement for duplex, and a 25% down payment requirement for tri- and four-plexes

The minimum credit score allowed for the new First Time Homebuyer Program is 620. You read that right… 620! The Mortgage Insurance amount is also based on the credit score, and specifically these brackets: 620-639, 640-659, 660-679, 680-699, 700-719, 720-739, 740-759, 760-779, 780+

DYK To qualify for the new First Time Homebuyer Program, you have to be under the a specific income threshold? Those income thresholds are county-specific:

Did you know that a ‘first time homebuyer’ is someone who has not owned a property within the last 3 years. There’s an awesome new first time homebuyer program that we’re going to be sharing more about over the coming weeks! Want to know more sooner? Call us!

2023 Conforming Loan Limits are out!

Conventional (Nationwide): $726,200
(3% minimum down payment - 1st time home-buyers)

High Balance (High Cost Counties): up to $1,089,300
(5% minimum down payment)

*This is a 12.21% increase from the 2022 Loan Limits ; a significant jump!

Conforming Loan Limit Map | Federal Housing Finance Agency This annual report describes FHFA's accomplishments, as well as challenges, the agency faced in meeting the strategic goals and objectives during the past fiscal year.