95% LTV in Bay Area Now Available on Conventional Loans

Borrowers in San Jose and rest of California may now get 95% Loan on Conventional Mortgages. The increased Loan to Value Ratio (LTV) is available on following programs:

• Freddie’s Home Possible (Fixed Rate only)
• FNMA MyCommunity (Fixed Rate, 5 yr ARM and 7 yr ARM)

The Loan must meet the following criteria:

• Must be a First Time Home Buyer
• Purchase Transaction only
• 680 Minimum Score Requirement
• 1 unit property only (SFR and PUDs. Condos maxed at 90% LTV)
• 2 months PITI reserves required after loan closing
• Full appraisal required
• 3% Seller Concessions maximum allowed;Downpayment can come from gift
• Must complete Homebuyer education course
• Income limitation requirements