Correspondent ALERT – Eligibility Updates for Fannie Mae

Correspondent ALERT – Eligibility Updates for Fannie Mae

 

Arc Home will align with the 2-4 unit eligibility enhancement announced in the Fannie Mae White Paper and DU 11.1 Release Notes. The changes highlighted in the table below are effective for Fannie Mae Primary Residence loans submitted or resubmitted to Desktop Underwriter (DU) on or after November 20, 2023. Our systems are being updated accordingly.

 

Fannie Mae – Standard Fixed Rate & ARM

Primary Residence

Conforming

PREVIOUS Eligibility

NEW Eligibility

Transaction

# of Units

Max LTV

Transaction

# of Units

Max LTV

Purchase & Rate/Term

2

85%

Purchase & Rate/Term

2

95%

3-4

75%

3-4

95%

High Balance

PREVIOUS Eligibility

NEW Eligibility

Transaction

# of Units

Max LTV

Transaction

# of Units

Max LTV

Purchase & Rate/Term

2

85%

Purchase & Rate/Term

2

85%

3-4

75%

3-4

75%

Fannie Mae – HomeReady® Fixed Rate & ARM

Primary Residence

Conforming

PREVIOUS Eligibility

NEW Eligibility

Transaction

# of Units

Max LTV

Transaction

# of Units

Max LTV

Purchase & Rate/Term

2

85%

Purchase & Rate/Term

2

95%

3-4

75%

3-4

95%

High Balance

PREVIOUS Eligibility

NEW Eligibility

Transaction

# of Units

Max LTV

Transaction

# of Units

Max LTV

Purchase & Rate/Term

2

85%

Purchase & Rate/Term

2

85%

3-4

75%

3-4

75%

 

Important Notes

·        The Fannie Mae LTV enhancements apply only to Primary Residence transactions within the Conforming loan limits. The maximum Fannie Mae LTVs for High Balance loans, as well as Second Home and Investment transactions, remain unchanged.

 

The revised program matrices will be available on the website (HERE) soon. Please contact your Arc Home Account Executive with any questions.