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Liberty Mortgage, Inc.
509 W. McKinley Avenue
Mishawaka, Indiana 46545
Telephone 257-0629
or 888-568-1786
Fax 574-257-0632
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Conventional and No PMI Loans
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Liberty Mortgage offers conventional loans with as little as 5% down on
primary residences, 10% down on second homes and 0% down on rental
properties (see investment properties). Conventional lending
requires, as a guideline, a minimum credit score of 620. In conventional lending the first 5% has to
be of your own money and any more can be a gift. If you're putting 20% down, it can all be a gift.
You must have two months of payments in reserves at closing, but it can be in a 401K, life insurance
policy with cash value, mutual funds, stocks, bonds, etc., or it can be a gift from a family member.
Less than 20% down requires private mortgage insurance (PMI). For a primary residence, the private mortgage
insurance will automatically terminate, in most cases, when based on the original amortization of the
loan, 78% loan to value is achieved.. The seller can pay up to 3% of buyers closing costs at 5% down
and up to 6% at 10% down.
Liberty Mortgage offers the best rates
and programs on No PMI Mortgages. These loans will save you
thousands to tens of thousands of dollars vs. the old fashioned way of
financing, less than 20% down and having Private Mortgage
Insurance. With No PMI Mortgages available, the wisest move is to
put as little as possible down, (5%), because you house is the slowest
appreciating asset in your portfolio, average 3-5% in Michiana. Put the
rest of the money in safe mutuals, bonds, etc, or pay off debts that you
can't write off the interest on your taxes with. Then accelerate
the payments by paying extra each month to pay the loans of
earlier.
No PMI Loan Options:
- 95% Financing - 5% Down. This is a conventional loan that we call a
"split or combo" loan because there are 2 loans. The
first mortgage has to be at 80% or below and the second is for 15%.
- 90% Financing - 10%Down. Split loan with an 80% first mortgage
and a 10% second mortgage.
- 85% Financing - 15% Down. 1 loan at 85%.
Conventional
refinancing can go to 95% for rate and term and 90% for cash out. To refinance a 1st and 2nd mortgage
together and go above 75% of appraised value, the 2nd mortgage has to be a year old or more. If you
are considering refinancing just a rate and term, you need to get at least a point better to make it
worth your while. Also if you've filed bankruptcy, you must be out of it for 4 years with NO bad credit
since the discharge. All conventional programs are automated underwritten. Ratio guidelines are 28%
for housing payments and 38% which includes housing and all minimum payments that appear on your credit
report.
Terms Available:
30 & 15 year fixed
1,3,5,7,10 year adjustable rate mortgages
5
or 7 year balloons
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