Recently Fannie Mae has increased the maximum loan to value limit to 97% up from 95%. The reason for this change is the following.
“According to consumer research conducted by Fannie Mae, the primary barrier to homeownership for first-time home buyers is saving money for down payments and closing costs. In support of ongoing efforts to expand access to credit and support sustainable homeownership, Fannie Mae is announcing an increase in the maximum LTV, CLTV, and HCLTV ratios for certain principal residence transactions.”
This will allow greater flexibility for those credit worthy borrowers who may not be able to come up with a full 5% down payments. These programs are available on single family homes, condos, PUDS. They all must be owner occupied.
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If you have any questions do not hesitate to reach out.
Craig Thibeau
Senior Loan Officer
North East Financial Middletown, CT
Ph 860-334-1354
NMLS 398576 Company NMLS 117273
craig@northeast-mortgage.com
www.northeast-mortgage.com
