Conforming Mortgages are ideal for homebuyers who have 5% or more to put down on a home purchase, or who have excellent credit scores with as little as 3% down payment. Conforming mortgages allow for existing homeowners to refinance up to 97% of their home’s value as well.
Dayton Ohio Conforming Mortgage Overview
Conforming mortgages are mortgages that meet (or conform to) Fannie Mae and Freddie Mac guidelines.
Dayton Ohio Conforming Eligibility
Most conforming lenders will require a 620 credit score to obtain a Conforming Mortgage. However, if you are above 80% financing, you will also need to meet the Private Mortgage Insurance (PMI) companies guidelines, which may or may not be more restrictive than Fannie Mae and/or Freddie Mac.
Ohio Conforming Credit History
Overall, credit history needs to be good. Fannie Mae and Freddie Mac utilize automated underwriting systems (AUS) that analyze credit history to determine if it is a viable loan. The minimum credit score that any lender will accept is a 620 for a fixed rate mortgage.
Ohio Conforming Collections and Judgments
Fannie Mae and Freddie Mac do not currently require that collection accounts be paid off as a condition of mortgage approval. However, court ordered judgments must be paid off before a mortgage is eligible for a Conforming Mortgage.
Ohio Conforming Past Bankruptcy Waiting Period
Chapter 7 Bankruptcy does not disqualify a borrower from obtaining a Conforming mortgage if at least 4 years have elapsed since the date of discharge
Negative credit after a bankruptcy can be a major hurdle to obtaining a Conforming mortgage in Ohio
A distinction is made between Chapter 13 bankruptcies that were discharged and those that were dismissed. The waiting period required for Chapter 13 bankruptcy actions is measured as follows:
- 2 years from the discharge date, or
- 4 years from the dismissal date
A borrower with more than one bankruptcy filing within the past seven years will require a 5 year waiting period, measured from the most recent dismissal or discharge date.
Ohio Conforming Past Foreclosure Waiting Period
A seven-year waiting period is required, and is measured from the completion date of the foreclosure action as reported on the credit report or other foreclosure documents provided by the borrower.
Ohio Conforming Deed-in-Lieu of Foreclosure and Past Short-Sale Waiting Period
A deed-in-lieu of foreclosure is a transaction in which the deed to the property was transferred back to the lender. A preforeclosure sale or short-sale is the sale of a property in lieu of a foreclosure resulting in a payoff of less than the total amount owed, which was pre-approved by the lender. Below are the waiting periods for this type of past derogatory credit item:
|Dayton Ohio Conforming Deed-in-Lieu and Preforeclosure Sale Waiting Periods|
|Waiting Period||Additional Requirements|
|2 Years||80% Maximum Financing|
|4 Years||90% Maximum Financing|
|7 Years||Eligible for maximum financing|
Dayton Ohio Conforming Loan Limits
In Ohio, the Conforming Loan Limit is $417,000.
Dayton Ohio Conforming Purchase Mortgage
The minimum down payment for Conforming mortgage is 3%, although most borrower put down at least 5% to avoid additional fees. The down payment may be gifted to the borrower by a family member.
Dayton Ohio Conforming Refinance Mortgage
The maximum financing for a Conforming refinance is 97% of the home’s value if the borrower is just paying off the outstanding mortgage, although most borrowers have at least 5% equity to avoid additional fees. The maximum financing for a Cash-Out Conforming refinance is 85%, although currently there are no mortgage insurance companies offering PMI, which cuts the maximum financing to 80%.
Dayton Ohio Conforming HARP Refinance
Homeowners that currently have a mortgage that is owned by Fannie Mae or Freddie Mac and that was closed prior to May 31, 2009 may be eligible for a Home Affordable Refinance Program (HARP) refinance, even if they owe more on their home that it is worth. To check to see if your mortgage is owned by Fannie Mae or Freddie Mac check the following links:
The Dayton Ohio HARP Refinance program allows homeowners that cannot refinance under normal programs to take advantage of historically low rates.