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 |
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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. |