Zillow Advice: Mortgage Types - 5% down Conventional Mortgage with LPMI http://www.zillow.com/advice-thread/5-down-Conventional-Mortgage-with-LPMI/523044/ Zillow Advice | Zillow Real Estate Orange County 2014&nbsp;conventional ... http://www.zillow.com/advice-thread/5-down-Conventional-Mortgage-with-LPMI/523044/ <p>Orange County 2014&nbsp;conventional loan limits are as follows:<br/><br/>1 Unit: 625,500<br/>2 Unit: 800,775<br/>3 Unit: 967,950<br/>4 Unit: 1,202,925<br/><br/><br/>Here is the link the excel spreadsheet from Fannie Mae that shows the 2014 limits:<br/><br/><a href="https://www.fanniemae.com/content/tool/loan-limit-table.xls" rel="nofollow">https://www.fanniemae.com/content/tool/loan-limit-table.xls</a><br/><br/><br/>To answer the question as to why there are loan limits, it's a big question.&nbsp; The bottom line is there are different types of loans.&nbsp; Typically we refer to conforming mortgages which have the loan limits listed above.&nbsp; There are non-conforming mortgages which will have different loan amount caps.&nbsp; In Orange County, there are plenty of jumbo options so long as you have the appropriate down payment, credit, etc.&nbsp; Different loan programs are designed for different purposes and so have different features (max loan amount, min down payment, etc...)<br/><br/>One of the great features of a conforming loan is that it has low down payment options (such as 5% down).&nbsp; To my knowledge, no jumbo loan programs have this so you will likely be stuck to those limits.&nbsp;<br/><br/>Good luck.&nbsp;</p> Thu, 02 Jan 2014 21:52:00 GMT http://www.zillow.com/advice-thread/5-down-Conventional-Mortgage-with-LPMI/523044/ 2014-01-02T21:52:00Z Unfortunately, I can't offer ... http://www.zillow.com/advice-thread/5-down-Conventional-Mortgage-with-LPMI/523044/ Unfortunately, I can't offer any help in California as my company is not licensed there but for those on the east coast I have&nbsp;[Promotion and contact information removed by Zillow moderator. Please see our&nbsp;<a style="text-align: right;" rel="nofollow" title="Good Neighbor Policy" href="/howto/GoodNeighborPolicy.htm">Good Neighbor Policy</a>&nbsp;for more information.] Mon, 13 Jan 2014 01:57:00 GMT http://www.zillow.com/advice-thread/5-down-Conventional-Mortgage-with-LPMI/523044/ 2014-01-13T01:57:00Z Sorry that you're getting ... http://www.zillow.com/advice-thread/5-down-Conventional-Mortgage-with-LPMI/523044/ <p>Sorry that you're getting conflicting info. 5% down is available with a loan amount of 417K or less. More than likely, LPMI would be the best way for you to go due to your income. We could discuss specifics if you'd like.<br/>I'm here to help,<br/>Paul</p> Sat, 04 Jan 2014 18:59:00 GMT http://www.zillow.com/advice-thread/5-down-Conventional-Mortgage-with-LPMI/523044/ 2014-01-04T18:59:00Z 417,000 maximum loan with ... http://www.zillow.com/advice-thread/5-down-Conventional-Mortgage-with-LPMI/523044/ <p>417,000 maximum loan with 5% down, and 625500 maximum loan with 10% down.&nbsp;&nbsp; (assuming you stay away from FHA financing).<br/><br/>The reason for the limits is an overwhelming majority of loans get securitized by Fannie Mae or Freddie Mac, or insured by FHA and they set county limits on what they allow.&nbsp;&nbsp;&nbsp; Whether you get your loan from Big Bank, Broker, Direct Lender, etc, chances are extremely strong they are working with the guideline of those agencies as the will eventually become the owner or insurer of the loan.<br/><br/>There are some banks that will lend "their own money" with portfolio products however these won't be available with &lt;10% down.&nbsp;&nbsp;</p> Thu, 02 Jan 2014 21:47:00 GMT http://www.zillow.com/advice-thread/5-down-Conventional-Mortgage-with-LPMI/523044/ 2014-01-02T21:47:00Z That is a great question, ... http://www.zillow.com/advice-thread/5-down-Conventional-Mortgage-with-LPMI/523044/ That is a great question, and sometimes lending guidelines seem to defy logic. &nbsp;You seem like a credit worthy individual, but unfortunately we must abide by the lending guidelines put in place by Fannie and Freddie.<br/><br/>Brian is correct. &nbsp;You will be able to go up to $417,000 with 5% down for an LPMI option. &nbsp;Chances are that the other LO is confused and will later be telling you to put 10% down or bring up an FHA option. &nbsp;Everyone can give advice, but not everyone gives good advice.<br/><br/>Best,<br/><br/>Bryan Thu, 02 Jan 2014 21:39:00 GMT http://www.zillow.com/advice-thread/5-down-Conventional-Mortgage-with-LPMI/523044/ 2014-01-02T21:39:00Z Thank you all for your responses, ... http://www.zillow.com/advice-thread/5-down-Conventional-Mortgage-with-LPMI/523044/ Thank you all for your responses, however I'm now receiving conflicting information.<br/><br/>Once says $417K is the cap with 5% down, and another says $625,500 (I emailed the guy stating that).<br/><br/>The one thing I don't understand is that why there are all these limits.&nbsp; If a person has no debt and very long work history, with great credit, then why not base a loan on that?&nbsp; IMO a person who has paid all his bills and never lives above his means would never destroy his credit by getting into a dumb situation that would damage his/her credit.<br/><br/>If you have great credit, there is a clear reason why.&nbsp; You were responsible and made good decisions, and you earned it.<br/> Thu, 02 Jan 2014 21:18:00 GMT http://www.zillow.com/advice-thread/5-down-Conventional-Mortgage-with-LPMI/523044/ 2014-01-02T21:18:00Z It likes look both of you ... http://www.zillow.com/advice-thread/5-down-Conventional-Mortgage-with-LPMI/523044/ It likes look both of you have great credit and income that should help you get the mortgage that you need. The next step for you is to call up and speak to some local Orang County lenders like myself. There are lender like myself in Orange County that can offer you the 5% down conventional loan that you are looking for. Of course your finances will need to be in place and analyze by the lender, but it seems you have good things going for you.&nbsp;Either way, the best thing for you to do is to speak with a lender directly to see if you can get started on financing with your situation or advice on what to do next. There are lenders like myself that would be glad to speak with you to help you get the loan that you need. Well I hope this helps! If you have any further questions or if you would like a loan, feel free to contact me.<br/><br/>Good Luck! Thu, 02 Jan 2014 19:48:00 GMT http://www.zillow.com/advice-thread/5-down-Conventional-Mortgage-with-LPMI/523044/ 2014-01-02T19:48:00Z 417,000 loan amount for a ... http://www.zillow.com/advice-thread/5-down-Conventional-Mortgage-with-LPMI/523044/ 417,000 loan amount for a conventional loan.<br/><br/>higher than that, and you are looking at a high balance or jumbo loan and wont be able to go up to 95% LTV<br/><br/>any new conventional loan with an LTV above 80% will require Lender Paid Mortgage Insurance or Borrower Paid Mortgage Insurance. LPMI is built into the interest rate and will be higher when compared what you see advertised. BPMI is a monthly insurance premium that is paid in addition to the principle and interest payment. LPMI will not fall off of the loan ever. BPMI will fall off when the LTV drops to 78% LTV based on the sales price of the home and the principle balance on your mortgage unless you refinance sooner due to appreciation in the area. Thu, 02 Jan 2014 17:47:00 GMT http://www.zillow.com/advice-thread/5-down-Conventional-Mortgage-with-LPMI/523044/ 2014-01-02T17:47:00Z Also, what is the cap on ... http://www.zillow.com/advice-thread/5-down-Conventional-Mortgage-with-LPMI/523044/ Also, what is the cap on the amount one can borrow with 5% down? Thu, 02 Jan 2014 16:55:00 GMT http://www.zillow.com/advice-thread/5-down-Conventional-Mortgage-with-LPMI/523044/ 2014-01-02T16:55:00Z [Off topic removed by Zillow ... http://www.zillow.com/advice-thread/5-down-Conventional-Mortgage-with-LPMI/523044/ [Off topic removed by Zillow moderator. Please see our&nbsp;<a href="/howto/GoodNeighborPolicy.htm" title="Good Neighbor Policy" rel="nofollow" style="text-align: right;">Good Neighbor Policy</a>&nbsp;for more information.] Thu, 02 Jan 2014 14:01:00 GMT http://www.zillow.com/advice-thread/5-down-Conventional-Mortgage-with-LPMI/523044/ 2014-01-02T14:01:00Z