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Profile picture for huevosman

Fannie Mae and Freddie Mac Guideline Quesiton

What is the min loan to value ratio when doing a cash out refinance (converting a 1st and 2nd into 1 conventional loan) 

Assuming new loan amount will be 417,000

Is it 75 percent or 80 percent min LTV? I have a lender than is claiming that it is 75% on a primary residence???? I thought Freddie and Fannie guidelines were 80% for a primary and 75% for a investment property.

Please clarify so I can move forward thanks
  • November 28 2012 - US
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Answers (4)

Profile picture for shapiroamg
80%.  Anything less is due to a lender with an overlay (as stated prior). An overlay is a risk factor.

If the lender is saying max is 75%, perhaps you should check around. I know at least one lender that is 80% without issues.
  • November 29 2012
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Sounds like the lender you spoke to has an "overlay" which means they offer less than what Fannie or Freddie allow. Find another lender.
  • November 29 2012
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Profile picture for GMerino
85% Primary
75% Second
75% Investment

Also depending on credit score.  Shop it around, get a few quotes before making a decision.
  • November 28 2012
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The max LTV per Fannie Mae is 85% on a primary residence if you could find PMI.  Expect 80% as a maximum assuming a one unit property.  If 2 units or more or you are using an ARM and not a fixed rate product the limit is 75% for cash out. Good Luck
  • November 28 2012
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