Wholesale 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 |
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|
Conforming |
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|
PREVIOUS Eligibility |
NEW Eligibility |
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|
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 |
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|
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 |
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|
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.