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

Fannie Mae guidelines will be posted shortly incorporating this update.


**Please contact your Account Executive with any questions**