Selling Guide

Published December 16, 2020

For best results, pose your search like a question.

Guide Resources

For a comprehensive list of resources such as forms, announcements, lender letters, notices and more.

Visit Selling and Servicing Guide Communications and Forms

Customers Recommend Ask Poli

AskPoli

If you have additional questions, Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published sources.

Launch Ask Poli  

Download PDF Guide

You can also download the printable 1,200+ page PDF, which include links.

Download Now

What are the requirements for HomeReady loans above 95% LTV?

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.

Criteria Requirements
LTV, CLTV, or HCLTV Ratio 95.01 to 97%

Note: The CLTV ratio can be up to 105% if the subordinate lien is a Community Seconds loan.

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’s servicing system,
  • the current servicer (if the lender is not the servicer),
  • Fannie Mae’s Loan Lookup tool, or
  • any other source as confirmed by the lender.

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.

Note: This requirement does not apply if the CLTV exceeds 95% only due to a Community Seconds loan.

Loan Type Fixed-rate loans with terms up to 30 years.

Note: High-balance and ARM loans are not permitted.

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.

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.

Have You Tried Ask Poli?

Poli knows. Just ask.

Ask Poli features exclusive Q&As and
more—plus official Selling & Servicing
Guide
content.

Try Ask Poli

Related Articles


AskPoli

Customers Recommend Ask Poli

If you have additional questions, Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published sources.

Guide Resources

For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more.

Visit Selling and Servicing Guide Communications and Forms

X
Having Issues with Seeing this Page Correctly?

Use Firefox or Chrome   How to do a hard refresh in Internet Explorer
We recommend that you use the latest version of FireFox or Chrome.

Download Firefox
Download Chrome
  A hard refresh will clear the browsers cache for a specific page and force the most recent version of a page.
    Hold the Ctrl key and press the F5 key.
     

Email Us
If you still have Technical Support questions, feel free to emailAsk_Poli@fanniemae.com.