Home Possible Updates
Newrez LLC "Newrez" Approved Correspondent Clients: 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.
|
Property Type |
Current LTV/CLTV Requirement |
New LTV/CLTV Requirement |
|
Fixed Rate Mortgages |
||
|
1-unit |
97%1 |
97%1 |
|
2-units |
85% |
95%1 |
|
3-4 units |
85% |
95%1 |
|
Adjustable Rate Mortgages |
||
|
1-unit |
95% |
95% |
|
2-units |
85% |
95% |
|
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.