LTV/TLTV/HTLTV Ratio Requirements for Conforming MortgagesEffective for Freddie Mac Settlements On and After March 1, 2009
NOTE: these maximum LTV/TLTV/HTLTV ratio requirements do not apply to super conforming mortgages. Please view requirements for super conforming mortgages.
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PURCHASE AND "NO CASH-OUT" REFINANCE MORTGAGES**
(Fixed-Rate, ARMs and 5- or 7-Year Balloon/Reset Mortgages) ** 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. |
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|---|---|---|---|---|
| Mortgage Purpose and Property Type | Max 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% |
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Cash-Out Refinance Mortgages
(Fixed-Rate, ARMs and 5- or 7-Year Balloon/Reset Mortgages) |
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|---|---|---|---|---|
| Property Type | Max 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% |
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Freddie Mac – Owned STREAMLINED REFINANCE MORTGAGES
(15 – 20-, 30-year Fixed-Rate and 5/1, 7/1 10/1 ARMs) |
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|---|---|---|---|---|
| Property Type | Max 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 or second home | 95% | 90% | 95% | 95% |
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"NO CASH-OUT" REFINANCE MORTGAGES currently owned or securitized by Freddie Mac*
(Fixed-Rate, ARMs and 5- or 7-Year Balloon/Reset Mortgages) *The LTV/TLTV/HTLTV ratios in this chart are only allowed with Mortgages originated in accordance with Section 24.5(c) of the Guide. |
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|---|---|---|---|---|
| Property Type | Max 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% |
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INITIAL INTEREST MORTGAGES |
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|---|---|---|---|---|---|---|---|---|---|
| Mortgage Purpose | Property Type | Max LTV w/o sec. fin. | Max LTV w/ sec. fin. | Max TLTV w/ sec. fin. | Max HTLTV w/ sec. fin. | ||||
| FRM | ARM | FRM | ARM | FRM | ARM | FRM | ARM | ||
| Purchase transaction and "no cash-out" refinance | 1-unit Primary Residence | 95% | 95% | 90% | 90% | 95% | 95% | 95% | 95% |
| Purchase transaction and "no cash-out" refinance | Second Home | 85% | 85% | 80% | 80% | 85% | 85% | 85% | 85% |
Maximum LTV/TLTV/HTLTV ratios for certain mortgage products and property types that vary from those shown above may be found in other chapters of the Guide.
Note: Minimum Indicator Score requirements can be found in Exhibit 25A, Mortgage Products with Risk Class and/or Minimum Indicator Score Requirements.