Requirements for Purchase Transactions with LTV, CLTV, or HCLTV Ratios of 95.01 – 97%
If the LTV, CLTV, or HCLTV ratio exceeds 95% for a purchase transaction, the following requirements apply.
| Criteria | Requirements |
|---|---|
| LTV, CLTV, or HCLTV Ratio | 95.01 to 97% |
| Loan Type | Fixed-rate loans with terms up to 30 years. |
| Property and Occupancy | One-unit principal residence. Manufactured housing is not permitted, unless the property meets the MH Advantage requirements. All borrowers must occupy the property unless there is a Community Seconds subordinate lien. |
| Borrower Eligibility |
|
| Homeownership Education | If all borrowers are first-time homebuyers, homeownership education is required. See B2-2-06, Homeownership Education and Housing Counseling for requirements. |
| Underwriting Method | DU only |
| Reserves | Reserves requirements will be determined by DU. |
| Other | All other standard Selling Guide policies apply. |
For additional information, see B2-1.3-01, Purchase Transactions.