Requirements for HomeReady Transactions with LTV, CLTV, or HCLTV Ratios of 95.01 – 97%
If the LTV, CLTV, or HCLTV ratio exceeds 95% for a HomeReady transaction, the following requirements apply.
|LTV, CLTV, or HCLTV Ratio||95.01 to 97%|
|Loan Purpose||Purchase transactions or limited cash-out refinances only.|
|Existing Loan||For limited cash-out refinances:
The lender must document that the existing loan being refinanced is owned (or securitized) by Fannie Mae. Documentation may come from
The lender must inform DU that Fannie Mae owns the existing mortgage using the Owner of Existing Mortgage field in the online loan application before submitting the loan to DU.
|Loan Type||Fixed-rate loans with terms up to 30 years.|
|Property and Occupancy||
|Credit Score Requirements||At least one borrower on the loan must have a credit score.|
|Underwriting Method||DU only|
|Reserves||Reserves requirements will be determined by DU.|
|Other||All other standard purchase and limited cash-out refinance and HomeReady requirements apply.|
For more information, see B5-6-01, HomeReady Mortgage Loan and Borrower Eligibility.