Fannie Mae is expanding its HomeReady program, which features the government-sponsored enterprise’s 3% down mortgage, reports HousingWire staffer Ben Lane.
In a bulletin sent to lenders earlier this week, Fanne Mae said it’s expanding the program to allow for up to 97% loan-to-value ratio refinances for loans that are already owned by Fannie Mae. Previously, its maximum allowable LTV ratio for certain refinances was 95%.
Specifically, Fannie said that it will soon allow for LTVs of 97% on one-unit limited cash-out refinance transactions that are underwritten by Fannie Mae’s Desktop Underwriter when the mortgage being refinanced is owned by Fannie Mae.
Additionally, Fannie Mae said that the requirement that the existing mortgage being refinanced be owned by Fannie Mae does not apply when the LTV is 95% or less, or when the CLTV only exceeds 95% due to a Community Seconds loan.