Pennymac is aligning with Fannie Mae’s expanded LTV ratio limits to 95% LTV/CLTV/HCLTV for 2-4-unit, principal residence, purchase and limited cash-out transactions. A DU Approve/Eligible is required. The LTV ratio increase does not apply to the following:
- High-balance mortgage loans
- Manually underwritten loans
Please check with your mortgage insurance providers to ensure they are supportive of these changes.
The LTV ratios highlighted in red represent the updated ratios.
The changes apply to DU loan casefiles submitted or resubmitted on or after the weekend of 11/18/2023.
Please contact your Sales Representative with any questions.