SUBJECT: New LTV Limit for FNMA 2-4 Unit Properties
DATE: November 8, 2023
FNMA recently announced an improvement to the LTV/CLTV/HCLTV for primary residence 2-4 units, effective with the DU Release the weekend of November 18, 2023.
Detail of Changes
- Maximum 95% LTV/CLTV/HCLTV
- Primary residence purchase and rate/term refinance transactions only; cash-out ineligible
- Conforming loan amounts only; high-balance ineligible
- LTV improvement also applies to HomeReady and HomeStyle conforming loans (however as a reminder, REMN has an overlay on HomeStyle loans allowing only 1 unit)
Clients may take advantage of this enhancement immediately which can be applied to new submissions and existing pipeline loans. Loans utilizing this improvement with a DU finding prior to the weekend of November 18, 2023, will require resubmission to DU and must receive an “Approve/Eligible” finding.
The Hub will be updated the weekend of November 18, 2023, until that time all loans must be locked manually with REMN’s lock desk at REMNlock@remn.com.
Fannie Mae guidelines will be posted shortly incorporating this update.
**Please contact your Account Executive with any questions**