Conventional Loan

– Not limited to first time home buyers– No income limits– The loan limit for a conventional loan is $417,000 (for a single family home or condo)– Minimum down payments: 5% of the sales price in most markets for single family homes

10% down for condos

20% down for two-family owner-occupied properties (primary residence)

25% down for 3 or 4 unit owner-occupied (primary residence)  purchases

–Seller can pay some or all closing costs and prepaid expenses associated with a purchase but this needs to be negotiated into the contract and is limited as follows:

for owner occupied purchases of primary residences or second homes, if the down payment is 5% then the seller can pay 3% (of the sales price) toward closing;

if the down payment is less than 25% (but more than 5%), the seller can pay 6% toward closing and

if the down payment is 25% or more, the seller can pay 9% toward closing.

– Minimum of 620 credit score required by Merrimack Mortgage Company for conventional loans.  Note:  the interest rate may be higher for lower credit scores depending on the property type, the down payment, etc.

–rehab funds available under a special conventional program

–monthly mortgage insurance payments will be required on loans with less than 20% down

Merrimack Mortgage Amazing Loan Ladies Mortgage Loans for Maine, New Hampshire and Massachusetts

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