Conforming loans are primarily based upon Fannie Mae's guidelines which you can find here. Learning this really well will be beneficial to your career.
Guidelines:
2020 Loan Limits: $510,400
2021 Loan Limits: $548,250
2022 Loan Limits: $647,200
97% LTV Options:
Day 1 Certainty:
Fannie Mae Instructions On How To Cancel PMI
Appraisals
Red Diamond Home Loans will generally follow Fannie Mae and Freddie Mac's guidelines on appraisal quality. See below for more details of those guidelines from the agencies.
Below are our guidelines for how we will handle loans with various appraisal scores:
- “The purpose of Collateral Underwriter is to identify appraisals with a heightened risk of property eligibility or policy compliance violations, overvaluation, and appraisal quality issues. “
- “The objective of CU is to assist lenders with assessing property eligibility and appraisal quality. It does not provide approvals or denials, nor should it be used as a basis for a credit decision.”
- For RDHL a score of 2.5 or lower would be an acceptable risk. On a loan with a score 3 or 4, RDHL will review the warnings and see if the appraiser can justify/correct the items listed in the SSR reports. RDHL will reserve the right to decline a file with an appraisal score of 5. A score of 4 would need to be approved by RDHL management to move forward.
Asset Depletion Guidelines - How To Qualify Without Income for a Fannie Mae Loan
Income Calculations - Commission Income
Marketing Center