Enhancement to Fannie Mae 2-4 Unit Maximum LTV/CLTV



Fannie Mae DU Release Notes, dated October 4, 2023, announced an improvement to primary residence 2-4 unit maximum LTV/CLTV.

The maximum LTV/CLTV for 2-4 unit properties is being increased subject to the following:

  • Maximum 95% LTV/CLTV (currently 2-units maximum 85% LTV/CLTV and 3-4 units maximum 75% LTV/CLTV)
  • Primary residence purchase and rate/term refinance transactions only; cash-out ineligible
  • Conforming loan amounts ONLY

NOTE:  There is no change to high balance primary residence purchase and rate/term transactions which continue to have a maximum 85% LTV/CLTV for 2-units and 75%LTV/CLTV for 3-4 units

The higher LTV also applies to HomeReady primary residence purchase transactions with a conforming loan amount.  The increased LTV is not applicable to HomeStyle, as Homebridge limits HomeStyle to 1-unit only.

This improvement may be applied to new submissions and loans currently in the pipeline.  All loans taking advantage of this improvement with a DU finding prior to the weekend of November 18, 2023 will require resubmission to DU and an “Approve/Eligible” finding must be received.

The Fannie Mae guidelines have been updated and posted on the website at www.HomebridgeWholesale.com

If you have any questions, please contact your Account Executive.