CONFORMING PURCHASE

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Conventional, conforming mortgage loans are those loans that meet Fannie Mae (FNMA) or Freddie Mac (FHLMC) guidelines. Fannie & Freddie are very large companies that purchase mortgage loans. They do not originate mortgage loans but purchase them on the 'secondary market'. Other investors also purchase loans on the secondary market but all go by Fannie/Freddie guidelines.

Northpoint Mortgage originates conforming loans using Fannie/Freddie guidelines so that they will be purchased on the secondary market thereby replinishing funds to make more mortgage loans.

Conforming mortgage loans require Mortgage Insurance whenever the down payment is less than 20% of the purchase price. This mortgage insurance is obtained through various private mortgage insurance (PMI) companies. This insurance lowers the risk to the investors which provides better rates to the borrower. PMI can be removed once the balance of the mortgage is lowered to 80%.

BENEFITS:	DRAW BACKS:
Up to 100% financing Both purchase and refinance 1-4 units allowed Low interest rates Low downpayment Up to 30 year payback terms Co-Signers allowed Investors allowed 2nd homes allowed	Maximum loan amount of $275,000 Mortgage Insurance if less than 20% down Good credit required Documentation of income and assets is required Impounds required if less than 10% down