Conventional Residential

Guidelines for standard conventional loans include:

• Minimum 5% down payment
• Maximum property debt ratio of 28% 
• Maximum total debt ratio of 36% 
• Private Mortgage Insurance (PMI); required if down payment is less than 20%
• Two months' payment reserves for hazard insurance are typically required if insurance is paid through the lender via an escrow account
• Housing and total debt ratios may be expanded for specialty programs
• PMI can be avoided by taking out a second mortgage or line of credit to cover the down payment. These additional loans will usually have a higher interest.