97% LTV Program

Offering 97% loan-to-value (LTV) financing option to help better serve First-Time Homebuyers and homeowners refinancing a Fannie Mae loan.

Eligibility and Terms

  • Desktop Underwriter® (DU®) underwriting required
  • 1-unit principal residence, including eligible condos, co-ops, PUDs, and MH Advantage® (Standard manufactured housing: max. 95% LTV/CLTV)
  • Fixed-rate mortgages with a maximum term of 30 years and ARMs are eligible (restrictions apply)
  • Reserves (if required per DU) may be gifted
  • Combined LTV up to 105% provided subordinate lien is an eligible Community Seconds® loan

 

FAQs: 97% LTV Options

In support of ongoing efforts to expand access to credit and to support sustainable homeownership, Fannie Mae offers 97% loan-to-value (LTV), combined LTV (CLTV), and home equity CLTV (HCLTV) ratios for the following principal residence transactions:

  • HomeReady® purchase transactions,
  • Standard purchase transactions if at least one borrower is a first-time home buyer, and
  • HomeReady and standard limited cash-out refinances of existing Fannie Mae loans.

 

Down Payment Assistance

Fannie Mae permits borrowers to obtain down payment and closing cost assistance from third party sources.

 

Income limits

No Limits

 

MI Coverage

Standard MI coverage; or Minimum MI coverage may be used subject to LLPA for Minimum MI

 

Click Here for more information on the Fannie Mae 97% loan-to-value (LTV).