What is an eligibility matrix?
What is an eligibility matrix?
The Eligibility Matrix provides the comprehensive LTV, CLTV, and HCLTV ratio requirements for conventional first mortgage loans eligible for delivery to Fannie Mae.
What is a LLPA Matrix?
This document provides the LLPAs applicable to loans delivered to Fannie. LLPAs are assessed based upon certain eligibility or other loan features, such as credit score, loan purpose, occupancy, number of units, product type, etc.
What are Fannie Mae underwriting guidelines?
Fannie Mae guidelines for conventional mortgages
| Fannie Mae guideline type | Minimum requirement |
|---|---|
| Credit score | 620 |
| Total debt-to-income ratio | Cannot exceed 45%, with some exceptions up to 50% |
| Cash reserves | Up to six months, depending on credit score, down payment amount, DTI ratio, occupancy type and property type |
What is Fhfa LLPA?
The Jan. 5 FHFA announcement outlines substantial upfront fee loan-level price adjustment (LLPA) changes for two specific loans scenarios: Second homes. High-balance loans, except first-time homebuyers with income less than the area median.
What is the max LTV on a conventional purchase?
The maximum LTV of a conventional mortgage loan is 97% if at least one of the borrowers is a first time home buyer. Otherwise the maximum LTV is 95%. The minimum mid-FICO for a conventional mortgage loan is typically higher than that of FHA and VA mortgage loans.
What is the max LTV for a 2 unit property?
85%
Maximum LTV/TLTV/HTLTV Ratio Requirements for Conforming and Super Conforming Mortgages
| Mortgage Purpose and Property Type | Maximum LTV/TLTV/HTLTV Ratio |
|---|---|
| 2-unit Primary Residence | 85% |
| 3- and 4- unit Primary Residence | 80% |
| Second Home | 90% |
| 1-unit Investment Property | 85% |
What is LLPA by Fannie Mae?
For both whole loan and MBS transactions, Fannie Mae may apply one or more loan-level price adjustments (LLPAs) based on certain loan-level credit risk characteristics, such as credit score, loan purpose, occupancy, number of units, and product type. All LLPAs are cumulative.
How is LLPA calculated?
They’re calculated and assessed as a percentage of the loan amount. For example, if the loan amount is $100,000 and the total LLPAs equals 0.25%, the charge would equal $250.
How long does Fannie Mae underwriting take?
Underwriting (1-3 days) Underwriting turn times vary from lender to lender, but 24 to 72 hours is considered normal. If you find yourself in a hot buyer’s market, or in the midst of a refinance boom however, turnaround times will often stretch due to increased loan volume.
What are Fannie Mae and Freddie Mac guidelines?
Fannie Mae and Freddie Mac Requirements Debt-to-income (DTI) ratio as high as 43% or 50% in some cases. Credit score of at least 640 or 620 in some cases. Down payment as low as 3% No recent major derogatory credit factors, such as foreclosure, short sale, bankruptcy or repossession.
What is the difference between FHA and FHFA?
The Federal Housing Finance Agency (FHFA) is a separate entity from the Federal Housing Administration (FHA). The FHA is part of the Office of Housing and Urban Development (HUD) and is responsible for providing mortgage insurance for approved lenders nationwide.
Does Fannie Mae 3% down have income limits?
Fannie Mae HomeReady vs. Freddie Mac’s Home Possible program works a lot like Fannie Mae’s HomeReady. Like the HomeReady program, Freddie Mac’s Home Possible loan: Allows 3% down payment. Has an income limit of 80% of the area median income.
