With so many bargains on the market, people are finding themselves moving up. Sometimes this means getting a loan over the maximum Fannie Mae limit of $729,750 for most Southern California counties. So what are your options when you get into the "non conforming" loan amounts.? Well there are many.
If you are looking for a 30 year fixed to purchase a home, there are many programs that will go to $2,000,000. In order to get this amount, you will need to meet the following criteria:
1. Have a 720+ credit score
2. Property must be owner occupied
3. Have a debt to income ratio under 45%
4. Have a minimum of 12 months of payment reserves, including property taxes and insurance
Depending on what county you live in will determine how much you can borrower, as noted below:
Los Angeles Count: 70%
Orange County 75%
San Diego County 70%
Ventura County 70%
There are programs for refinancing as well. For rate and term refis, the above criteria remain the same. For cash out refi's, you will most likely be limited to maximum loan of 1.5mil with a 720 credit score, and you cash out will be limited to $250,000-$350,000.
If you require more than $2,000,000, there are portfolio programs that will go as high as $3,000,000. Programs are usually limited to fixed period arms, such as 3,5, and 7 year terms. Requirements for these loans are as follows:
1. Credit score required is 680+
2. Property can be owner occupied, investment, or 2nd home
3. Loan to value cannot exceed 65% for a SFR, 60% for a condo, or 60% for a 2nd home
4. Must have 12 months payment reserves
5. Debt to income ratio not to exceed 40%
These portfolio programs are great for high rise condos, including non warrantable condo projects, that require to that far exceed the Fannie Mae limits. They are also great for borrowers who are looking for cash out that exceeds $350,000, as there are not cash out limits on most programs.
Call me today at (800) 736-0565 for more details.