Skip to main navigation


FM Platform Nav
  

        


Single-Family Business
      
      Homebuyers, Owners, and Renters

          
                        Single-Family
                
                Capital Markets
                                      Multifamily
          About Us
          
                        Careers
          
                        Contact Us
                                    Login
 FM Site Nav
  

        

Homepage
                    
      Fannie Mae logo
    Toggle navigation
      Originating & Underwriting
                      
            Pricing & Execution
                      
            Delivering
                      
            Servicing
                      
            Learning Center
                      
            Apps & Technology
                      
            News & EventsToggle search
 
 Home
                        Originating & Underwriting
                        Mortgage Products
                        97% Loan to Value Options
    Originating & Underwriting
97% Loan to Value Options
Serving first-time homebuyers and homeowners refinancing a Fannie Mae loan
Fannie Mae is expanding credit for eligible borrowers and supporting sustainable homeownership. How? By providing 97% loan-to-value (LTV) financing options that help lenders better serve first-time homebuyers.

**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 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
  
  
      Fact Sheet


FAQs


Help & Training

  

  Homeownership Education Requirements
  To qualify for purchase loans with an LTV greater than 95%, homeownership education will be required for at least one borrower, when all occupying borrowers are first-time homebuyers. Fannie Mae HomeView® can be used to satisfy this requirement.

Learn moreabout homeownership education.
                                Down Payment Assistance
  Fannie Mae permits borrowers to obtain down payment and closing cost assistance from third party sources.

Learn more about Down Payment Assistance.

  

  Purchase Options for 97% LTV/CLTV/HCLTV

**HomeReady**
			**97% LTV Standard****First-time home buyer**
			Not required
			At least one borrower must be a first-time homebuyer.**Income limits**
			80% of AMI in all census tracts. HomeReady income limits are integrated in DU or can be found using the Income Eligibility Lookup tool.
			No limits**MI coverage**
			25% MI coverage for LTV ratios of 90.01–97%; standard MI coverage for LTV ratios of 90% or less. Minimum MI coverage may be used subject to LLPA for Minimum MI.
			Standard MI coverage; or Minimum MI coverage may be used subject to LLPA for Minimum MI**Homeownership education and housing counseling**
			If all occupying borrowers are first-time homebuyers then at least one borrower must complete homebuyer education, regardless of LTV. For details see Homeownership Education and Housing counseling FAQs.
			For purchase transactions with LTV, CLTV, or HCLTV > 95%, if all occupying borrowers are first-time homebuyers, then at least one borrower must complete homeownership education, regardless of the product chosen. For details see Homeownership Education and Housing counseling FAQs**Pricing**
			LLPAs are waived for all HomeReady loans*.
			Standard risk-based LLPAs* (based on loan risk characteristics)*Loan Level Price Adjustments (LLPAs) are waived for all HomeReady loans, as well as first-time homebuyers that meet certain income requirements and Duty to Serve loans. See the LLPA Matrix and Duty to Serve eligibility requirements for details.

  

  Refinance Option for 97% LTV/CLTV/HCLTV

**HomeReady**
			**97% LTV Standard**Limited Cash-Out Refinance (LCOR) for transactions underwritten using DU when the mortgage  being refinanced is owned or guaranteed by Fannie Mae
			The lender must document that the existing loan is owned (or securitized) by Fannie Mae.
			Documentation may come from the lender’s servicing system, the current servicer (if the lender is not the servicer), Fannie Mae’s Loan Lookup tool,or another source confirmed by the lender. All other standard  limited cash-out refinance (LCOR) policies apply.




Have questions?
      Get answers to your policy and guide questions, straight from the source.
              




Get Started
  
  Work with Fannie Mae
  Customer Login
                                Password Reset
                                Not a customer? Get Started
                                Products & Solutions
  Mortgage Products & Options
                                Technology Apps & Solutions
                                Support & Resources
  Customer Service
                                News & Events
                                Learning Center
                                Guide Forms
                                Other Sites
  The Marketing Center
                                Fannie Mae's Consumer Website
                                Duty to Serve
                                HomePath
    
    
  

      
Social media
  

        
            Follow us
    Footer menu
  

        
            Suppliers
          Careers
          Contact Us
          Legal
          Privacy
                Cookie Preferences
            © 2024 Fannie Mae