Fannie Mae offers 97% LTV/CLTV/HCLTV financing options to help lenders serve qualified home buyers and to support refinance of Fannie Mae loans. This is part of our ongoing efforts to expand access to credit for creditworthy borrowers and to support sustainable homeownership.
Expanded 97% LTV Options
According to consumer research conducted by Fannie Mae, the primary barrier to homeownership for first-time
home buyers is saving money for the down payment and closing costs. To expand access to credit and to
support sustainable homeownership, Fannie Mae offers 97% loan-to-value (LTV)/combined LTV (CLTV)/home
equity CLTV (HCLTV) financing to help creditworthy home buyers who would otherwise qualify for a mortgage
but may not have the resources for a larger down payment, as well as a 97% LTV/CLTV/HCLTV refinance
option for Fannie Mae loans.
Desktop Underwriter® (DU®) underwriting required
1-unit principal residence (including condos and PUDs; manufactured housing is not eligible)
Fixed-rate mortgage with maximum term of 30 years
Reserves (if required per DU) may be gifted
NOTE: Both HomeReady® and Fannie Mae Standard mortgages allow for a CLTV up to 105% if the
subordinate lien is an eligible Community Seconds® loan.
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