In a move to help expand access to credit and shore up affordable rental housing, Fannie Mae is updating its loan-to-value (LTV) ratios. The new ratios, which take effect December 1st, are as follows:
-For 1-Unit properties: 97% LTV for first-time homebuyers, 95% LTV for subsequent homebuyers
-For 2-4 Unit properties: 85% LTV for first-time homebuyers, 80% LTV for subsequent homebuyers
Fannie Mae says that the updated LTV ratios will help borrowers with a smaller down payment and make it easier for them to qualify for a loan. The move is also intended to support the rental market by making it easier for investors to purchase properties.
You can read this full article at: https://www.housingwire.com/articles/fannie-mae-to-increase-ltv-ratios-for-purchase-cash-out-refi-loans-on-multi-unit-properties-in-du/(subscription required)
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