While IBMC offers a variety of loans backed by the government, you can also lean on IBMC for conventional loans. Explore the features and benefits that make this loan product so appealing. Below is an overview of these benefits:

Low down payment — A borrower can finance the purchase of a new home with as little as 5% down or 3% down if one borrower is a first-time home buyer.

Flexible terms — Mortgage terms of 10, 15, 20, 25 and 30 years are available.

High max loan limit — Borrowers can finance up to $766,550 for their mortgage.

No income limit restrictions — While there are minimum credit scores, employment requirements and other criteria that have to be met, there is no maximum income limit that borrowers must be below to obtain a conventional loan. Income restrictions do apply when utilizing the HomeReady program or the first-time homebuyer LLPA waiver.  

HomeReady — If eligible, in addition to the conventional features and benefits, this product offers waived LLPAs and reduced mortgage insurance. HomeReady can be an ideal solution for credit worthy low-income borrowers, whether they're first-time or repeat buyers. Additionally, the $2,500 grant for eligible very low-income borrowers can help with down payment and closing cost assistance, which are two of the greatest barriers to homeownership.  

Private mortgage insurance can be canceled — Outside of the automatic removal at 78% LTV, eligible borrowers can work with the IBMC servicing team to review their options for removing PMI. Every scenario is different, but the information below offers general guidance on PMI removal options. 

To cancel PMI based on original value: 

• Good payment history is required — no 30-day late payments in the past year and no 60-day late payments in the past two years. 
• No minimum payment history is required.  
• The loan balance must be 80% of the original amount of the appraised value or sales price, whichever is lower. The principal balance may be paid down at any time to reach 80% LTV and a request must be submitted at that time to have the PMI reviewed for termination. A Broker’s Price Opinion (BPO) may be required.

To cancel PMI based on current value: 

• A good payment history is required — no 30-day late payments in the past year and no 60-day late payments in the past two years. 
• Appraisal and LTV requirements are based on length of payment history. 
• Fannie Mae requires a BPO (Broker’s Price Opinion) or appraisal. These are required to be ordered by IBMC.  

Two Truths and a Lie

Can You Spot the False Statement?

Last month's issue of IBMConnection examined the features and benefits of VA loans. Below are three statements based on the content shared in that newsletter — two of which are true and one of which is false.

Test your knowledge by choosing which one you think is false. Results from the poll and the answer will be revealed in next month's issue of IBMConnection.

Last Week's Answer

Four out of five IBMConnection readers selected the correct false statement in last week's edition of Two Truths and a Lie, which asked about the features and benefits of FHA loans. The false statement, which was selected by 80% of respondents, was "Borrowers need a 5% down payment on a 1- to 4-unit primary residence with an FHA loan." Borrowers only need 3.5% for a down payment on a 1- to 4-unit primary residence.

IBMC Training Center

Self-Employed Borrower Training

April 30-May 1, IBMC Headquarters