Bulletin 2023-078 Fannie Mae LTV Updates for 2-4 Unit Properties
Newrez LLC "Newrez" Approved Correspondent Clients; Fannie Mae will update Desktop Underwriter (DU) Version 11.1 the weekend of November 18, 2023, with the new maximum allowable LTV, CLTV and HCLTV ratios for Conforming Fixed and ARM two-to-four-unit primary residence, purchase and rate and term refinances to 95%. This update does not apply to high balance loans. See below grid for updates.
Loans may be registered and or locked on or after November 9, 2023 with an Approve/Ineligible Recommendation in DU for the increased LTV only. Loan must be resubmitted to DU and receive an Approve/Eligible Recommendation prior to Newrez purchasing the loan.
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Standard Eligibility Requirements-Desktop Underwriter Version 11.1 |
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Transaction Type |
Number of Units |
Maximum LTV, CLTV, HCLTV |
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Primary Residence |
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Purchase Rate & Term Refinance |
2 Units |
FRM/ARM: 95% (currently 85%) |
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3-4 Units |
FRM/ARM: 95% (currently 75%) |
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HomeReady |
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Primary Residence |
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Purchase Rate & Term Refinance |
2 Units |
FRM/ARM: 95% (currently 85%) |
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3-4 Units |
FRM/ARM: 95% (currently 75%) |
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