Saturday, March 29, 2008

Initial FannieMae Guidelines for “Jumbo” Conforming Loans

More and more information is coming out on the higher conforming loans instigated by Congress as part of the Economic Stimulus Package. FannieMae has a detailed outline available as a .pdf. Listed below is a summary of the Eligible Products, Purpose and Occupancy Requirements:

Products
* 15-, 20-, 30- and 40-year fixed-rate, fully amortizing mortgages (no balloons)
* 30-year fixed-rate mortgages with 10-year interest-only periods
* Fully amortizing 5/1 adjustable-rate mortgages (ARMs)
* 5/1 ARMs with 10-year interest-only periods

Purpose
* Purchase
* No cash-out refinance
* Cash-out refinances for primary residence only

Occupancy
* 1-unit primary residences, including condos and PUDs
* 1-unit second homes
* 1-unit investment properties

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