CTC Processing LLC
Loan Program Processing

Conventional Loan Processing Services | CTC Processing LLC

Conventional loans through Fannie Mae (DU) and Freddie Mac (LP) are the backbone of Colorado's mortgage market. CTC Processing manages DU/LP findings, condo project reviews, PMI requirements, and the full condition-clearing process so your conventional files close on schedule.

Requirements

Key requirements

  • 3% down (first-time buyers) or 5% down
  • 620+ credit (3% down requires 620
  • best pricing at 740+)
  • PMI required under 20% down
  • conforming limit $832,750 (most CO counties) to $1,249,125 (Eagle/Pitkin)
  • DU or LP approval required
Workflow

Processing steps

  1. 1Run DU or LP
  2. 2review findings for conditions
  3. 3order appraisal
  4. 4review appraisal for value and conditions
  5. 5clear title
  6. 6clear income/credit/asset conditions
  7. 7obtain final approval
  8. 8CTC
Underwriting

Common conditions

  • Self-employment income (2 years tax returns, P&L)
  • large deposits
  • gift fund documentation
  • condo warrantability review
  • PMI certificate
  • HOA questionnaire
CTC Insight

How we process it

CTC reviews DU/LP findings on intake and flags any conditions that require third-party documentation (bank statements, CPA letters, HOA questionnaires) immediately — these are the conditions most likely to cause last-minute delays.

FAQ

Frequently Asked Questions

What is the difference between DU and LP for conventional loans?

DU (Desktop Underwriter) is Fannie Mae's automated underwriting system; LP (Loan Product Advisor) is Freddie Mac's. Both issue findings that drive the conditions list. CTC runs both when beneficial and selects the stronger approval.

How does condo warrantability affect conventional loan processing?

Fannie Mae and Freddie Mac require condo projects to meet specific standards (owner-occupancy, budget reserves, litigation status). CTC orders the HOA questionnaire on day 1 and reviews it for warrantability issues immediately.

When can borrowers remove PMI on a conventional loan?

PMI can be requested for removal when the loan balance reaches 80% of original value. It automatically terminates at 78% LTV. CTC notes the PMI removal milestone in the file for the servicing handoff.

Conventionals — closed with precision.

Hand us the file. We'll handle the guideline, the conditions, and the closing.

Partner with CTCCall CTC — 970-222-2615