1st Florida Lending Corp., a registered Mortgage Lender
Orlando servicing only the State of Florida, offering over
48 loans programs including Conventional Loans, Non-
Conforming Loans, FHA Loans, VA Loans, USDA Loan,
Self-Employed Loans, Bank Statement Loans, No-Doc
Loans, Reverse Mortgage Loans, ITIN Loans, Rental
Investment Loans, to name a few and specializing in
Bank Statement Loans or “stated loans” requiring no Tax
Return verification and much more. * No broker or
lender fees are for FHA,VA, USDA and Conventional
loan types
Main Office: 2151 Consulate Dr. * Suite 8 * Orlando,
FL., 32837 * Telephone * (800)856-7097 * (800) 655-
1345 * (407) 300-2558 * Fax (877) 401-9955
* Disclaimer: All Loan programs, rates and terms can
change without notice and are subject to credit and
underwriting approval. Loan charts highlight min/max
constraints, assumptions & random scenarios only. We will
always work hard to approve your loan but there are no
guarantees of any kind expressed or implied that any loan
we be approved. Licensed in Florida Only. When Banks
Say No ! We Say YES ! ® is a registered trademark owned
by 1st Florida Lending Corp. Florida lender license #
MLD106.
© 2007 - 2023 1st Florida Lending Corp. - All rights reserved
99% LTV CONVENTIONAL
HOME LOAN
Conventional Loans generally
require a 3% down payment.
We now offer a 1% Down
Payment with Underwriting
providing the remaining 2% of
the purchase price towards
the down payment providing
your loan with a 3% equity
that you can keep. Ask us
about purchasing your
primary residence with the
lowest down payment
Benefits Of a 99% LTV
Conventional Loan
This loan option has an incredible
opportunity to help with home
affordability and several benefits. Chief
among them is the ability to put down as
little as 1% down to get into a home.
Underwriting will cover an additional 2%
of the borrowers purchase price as a
down payment. Under this scenario,
you would acquire your home with 3% in
equity. This is available for both first-
time and repeat home buyers. There are
no restrictions on where you can live or
where you move from. The program is
available nationwide.
What are the 99% LTV Home
Loan Requirements
As with any mortgage, there are
restrictions and qualifications for
eligibility. Borrower(s) must meet all
conventional home loan requirements
for credit score, income and the subject
property.
Below are a few program
specific requirements:
•
Gives you the ability to offer multiple
purchase options to borrowers with
income at or below 80% of the Area
Median Income (AMI)
•
Maximum Loan Amount of $726,200
(2023 Conforming Loan Limits)
•
Follows the same guidelines as
Home Possible®
•
Borrower(s) must occupy the
property as primary residence.
•
First Time Home Buyer online course
required if borrowers have not owned a
home in the last 3 years.
•
Borrower(s) may not have ownership
interest in any other residential
dwellings.
•
Borrower(s) may receive their 1%
down payment as a gift.
•
620+ Credit score required.
•
50% maximum Debt to Income (DTI)
limits
•
Up to a 2% Gift from lender can be
used for down payment only (Up to
$4000 Max Gift)
Sample Calculation
But before we go too much further, let’s
show a sample loan. We'll use a
$250,000 assumed purchase price. This
is a 30-year fixed loan with an interest
rate of 7% (Estimate only).
•
You bring $2,500 for a down
payment (.01 × $250,000 = $2,500).
•
Underwriting covers 2% of the loan
amount (.02 × $250,000 = $5,000).
•
Your monthly principal and interest
payment is $1,613.36.
Qualifying for the 99% LTV
Conventional Loan Program
Because this is a conventional loan
product tied to affordable housing goals,
there are several requirements you
should know about. Here’s a brief
rundown:
•
You can’t qualify if you make higher
than 80% of the median income in the
area in which you’re looking to buy. For
example, if you live in Macomb County,
Michigan the area median income is
$90,800. You can’t use more than
$72,640 to qualify for this ($96,200 × 0.8
= $76,960). You can look up your area's
median income with Fannie Mae's
lookup tool.
•
You need a qualifying FICO® Score
of 620 or better.
•
This is for single-unit primary
residences only.
•
When combined with underwritings
2% contribution, your initial down
payment can be no more than 5% in
total.
•
There's a $350,000 upper loan limit
on this conventional option.
Although there are income limits, there’s
one other important note to make. This
is qualifying income. If you can meet
debt-to-income ratio (DTI) requirements
without using bonus income or putting
another borrower on the loan, it doesn’t
need to be included in your qualifying
income. This could give you some
breathing room.
Is this really only a 1% down
payment loan?
Yes, but you get the benefit of going into
your loan with 3% equity. In addition to
the 1% you bring to the closing table;
Underwriting provides a 2%
contribution.
Are there other low down
payment options if I don’t
qualify for this program?
There are several other low down
payment options that may be available
to you depending on your situation. For
example, if you need to qualify with a
higher income, you can still put as little
as 3% down on a conventional loan as a
first-time home buyer. If your credit
score is 580 or better, you can put 3.5%
down for an FHA loan.
HOW IT HELPS YOU AS A
BORROWER
We know that the down payment is one
of the biggest obstacles home buyers
face when they can otherwise afford a
mortgage payment.
•
Our 99% LTV Conventional Loan
allows you to get a mortgage by putting
as little as 1% down and combine that
with 2% from underwriting, you start
with 3% equity.
•
Get into a house sooner by reaching
the down-payment savings goal faster!
•
More money for furniture, house
repairs and maintenance
This is available to those qualifying with
less than 80% of the area median
income level who have qualifying credit
scores of 620 or better. You can buy a
single-unit primary residence
nationwide.
Does this sound good to you? You can
apply online or give one of our Home
Loan Experts a call at (800) 655-1635