Minimum Borrower Contribution for Purchase Transactions
The following table describes the minimum borrower contribution requirements (excluding loans with grants).
LTV, CLTV, or HCLTV Ratio |
Minimum Borrower Contribution Requirement from Borrower's Own Funds |
|
---|---|---|
80% or less | One- to four-unit principal residence | A minimum borrower contribution from the borrower’s own funds is not required. |
Greater than 80% | One-unit principal residence | A minimum borrower contribution from the borrower’s own funds is not required. |
Two- to four-unit principal residence | The borrower must make a 3% minimum contribution from their own funds, unless there is any type of grant. |
No minimum contribution is required in connection with a limited cash-out refinance transaction.
For additional information, see B5-6-02, HomeReady Mortgage Underwriting Methods and Requirements.