The loan-to-value (LTV) ratio limits for mortgage loans can vary depending on the type of mortgage and the lender's requirements.
For a conventional mortgage, the LTV ratio limits can vary depending on the lender and other factors, such as your credit score, the type of property you are financing, and whether or not you'll live in the property. For example, some lenders may require a lower LTV ratio for a conventional mortgage. In comparison, others may be willing to consider a higher LTV ratio on a case-by-case basis.
For example, the maximum LTV for a conventional loan is 97% if you're buying a single-family home and you will live there. This means your down payment must be 3% or more.
On the other hand, the maximum LTV would be 85% if you're buying a 2-unit property and you'll live in one of the units and rent out the other.
For FHA loans, the LTV ratio limits are generally higher than those for conventional mortgages. For example, lenders may allow an LTV ratio of up to 96.5% for an FHA loan, for a single-family home, or a 2-to-4-unit property, although this can vary depending on the lender and other factors.
VA loans may also have higher LTV ratio limits than conventional mortgages. For example, lenders may allow an LTV ratio of up to 100% for a VA loan, meaning that a veteran eligible for a VA loan may not need a down payment when buying a home.
LTV ratio limits for mortgage loans are not set in stone and can vary depending on your circumstances. Therefore, it's always a good idea to check with a lender like NewCastle Home Loans for specific LTV ratio requirements.