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LTV/TLTV/HTLTV Ratio Requirements for Conforming Mortgages

NOTE: these maximum LTV/TLTV/HTLTV ratio requirements do not apply to super conforming mortgages. Please view requirements for super conforming mortgages.

PURCHASE AND "NO CASH-OUT" REFINANCE MORTGAGES**
(Fixed-Rate and ARMs)
** See chart below for LTV/TLTV/HTLTV ratios and other requirements for a "no cash-out" refinance of a mortgage currently owned or securitized by Freddie Mac.
Mortgage Purpose and Property TypeMax LTV
w/o sec. fin.
Max LTV
w/sec. fin.
Max TLTV
w/sec. fin.
Max HTLTV
w/sec. fin.
1-unit Primary Residence 95% 90% 95% 95%
2-4 unit Primary Residence 80% 75% 80% 80%
Second Home 85% 80% 85% 85%
Purchase transaction Mortgage secured by 1-unit Investment Property 85% 80% 85% 85%
"No cash-out" refinance Mortgage secured by 1-unit Investment Property 75% 70% 75% 75%
Purchase transaction Mortgage secured by 2-4 unit Investment Property 75% 70% 75% 75%
"No cash-out" refinance Mortgage secured by 2-4 unit Investment Property 75% 70% 75% 75%

 

Cash-Out Refinance Mortgages
(Fixed-Rate and ARMs)
Property TypeMax LTV
w/o sec. fin.
Max LTV
w/sec. fin.
Max TLTV
w/sec. fin.
Max HTLTV
w/sec. fin.
1-unit Primary Residence 80% 75% 80% 80%
2-4 unit Primary Residence 75% 70% 75% 75%
Second Home 75% 70% 75% 75%
1-unit Investment Property 75% 70% 75% 75%
2-4 unit Investment Property 70% 65% 70% 70%

 

"NO CASH-OUT" REFINANCE MORTGAGES currently owned or securitized by Freddie Mac*
(Fixed-Rate and ARMs)
*The LTV/TLTV/HTLTV ratios in this chart are only allowed with Mortgages originated in accordance with Section 24.5(c) of the Guide.
Property TypeMax LTV
w/o sec. fin.
Max LTV
w/sec. fin.
Max TLTV
w/sec. fin.
Max HTLTV
w/sec. fin.
1- to 2-unit Primary Residence 95% 90% 95% 95%
3- to 4-unit Primary Residence 80% 75% 80% 80%
Second Home 95% 90% 95% 95%
1- to 4-unit Investment Property 75% 70% 75% 75%


Maximum LTV/TLTV/HTLTV ratios for certain mortgage products and property types listed below that vary from those shown above may be found in other sections of the Single-Family Seller Servicer Guide.

  • Mortgages secured by a Manufactured Home – Guide Section H33.3(e)
  • Home Possible® Mortgages – Guide Section A34.10
  • Super conforming Mortgages – Guide Section L33.3(c)
  • Mortgages to borrowers with a credit history that includes a previous mortgage foreclosure or a conveyance of a deed-in-lieu of foreclosure – Guide Section 37.7(d)
  • Mortgages that use a Streamline Project Review – Guide Section 42.4

Note: Minimum Indicator Score requirements can be found in Exhibit 25, Mortgages with Risk Class and/or Minimum Indicator Score Requirements.

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