Conforming Loans (sometimes referred to as Conventional Loans) are loans that conform to GSE (Fannie Mae and Freddie Mac) guidelines. The Conforming loan limits for 2012 remain at previous set limits, $417,000 for a one family home in Ohio. The minimum down payment is 3%, although it is much more beneficial to put at least 5% down, due to increased Private Mortgage Insurance (PMI) requirements above 95% financing. Private Mortgage Insurance and Escrow accounts will be required on loans with less than a 20% down payment. Borrowers will be subject to Loan Level Price Adjustments (LLPAs), set by the GSEs, based on credit score, Loan to Value ratio (LTV), and property type.
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