Announcement 2021- xxx - Home Possible Updates

Freddie Mac is increasing the maximum LTV ratio to 95% and CLTV ratio to 105% for certain Home Possible Mortgages with Affordable Second Mortgages. See below grid with updates included. Please note the below updates do not apply to the new Conforming Expanded Loan Limit Products.

 

Maximum LTV/CLTV

Property Type

Current Requirements

New Requirements

Fixed Rate Mortgages

1-unit

97%1

97% 1

2-units

85%

95% 1

3-4 units

85%

95% 1

ARMs

1-unit

95%

95%1

2-units

85%

95%1

3-4 units

75%

75%1

1 Max 105% CLTV with Affordable Second

 

Borrower Contribution

  • When the LTV/CLTV/HCLTV is greater than 95%, the minimum borrower contribution is 3% of the value for purchase transactions.