Fannie Mae is making a big change to its loan guidelines. On November 18, 2023, the maximum LTV ratio for two- to four-unit principal residence purchase and limited cash-out transactions will increase to 95%.
This means that borrowers can now put down as little as 5% on a two- to four-unit property, making it easier for them to buy a home or investment property.
Here's what you need to know:
This change applies to loans that are submitted or resubmitted to Fannie Mae's Desktop Underwriter (DU) on or after the weekend of November 18, 2023. 🗓
This change does not apply to high-balance mortgage loans or loans that are manually underwritten.
This is a great opportunity for those who are looking to buy a two- to four-unit property.