97% LTV Comparison Chart

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All Rights Reserved
97 % Financing Options Comparison Chart
Comparing Fannie Mae HomeReady / Fannie Mae Standard 97 / Fannie Mae
MyCommunity / Freddie Mac HomePossible Advantage
Product Feature Fannie Mae HomeReady Fannie Mae Standard 97 Fannie Mae
MyCommunityMortgage
(available until Dec. 2015)
Freddie Home Possible
Advantage
Loan Purpose: Purchase Purchase or a Limited
Cash-out Refinance
Purchase Purchase
Occupancy 1-Unit Principal Residence 1-Unit Principal Residence 1-Unit Principal Residence 1-Unit Principal Residence
LTV Limits 95.01-97% for 1 Unit 95.01-97% for 1 Unit
Purchase; for Limited
Cash-out Refinance
current lien must be an
existing Fannie Mae Loan
95.01-97% for 1 Unit 95.01-97% for 1 Unit
Product Fixed Rate Fixed Rate Fixed Rate Fixed Rate
Income Limits  No Income Limits in
low-income census
tracts (defined as < 80%
of AMI)
 100% of Area Median
Income in High-
Minority Census Tracts
or Designated Disaster
Areas
 80% AMI in other tracts
No Income Limits < 100% AMI with higher
income limits to 115% of
AMI for non-metro areas
< 100% AMI with higher
income limits to 115% of
AMI for non-metro areas
No Income Limits if
property located in an
Underserved area
Ownership of other
property
Occupant borrower may
not have any ownership in
any other residential
property at time of closing
Occupant borrower may
not have any ownership in
any other residential
property at time of closing
Occupant borrower may
not have any ownership in
any other residential
property at time of closing
Occupant borrower may
not have any ownership in
any other residential
property at time of closing
Non-Occupant Co-
Borrowers
Permitted w/ reduction in
LTV to 95% - income
included in qualifying
Permitted w/ reduction in
LTV to 95% - income NOT
included in qualifying
Not Permitted Not Permitted

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All Rights Reserved
97 % Financing Options Comparison Chart
Comparing Fannie Mae HomeReady / Fannie Mae Standard 97 / Fannie Mae
MyCommunity / Freddie Mac HomePossible Advantage
Manufactured Housing Permitted w/ reduction in
LTV to 95% - temporary
buydowns not allowed
Permitted w/ reduction in
LTV to 95% - temporary
buydowns not allowed
Not Permitted Not Permitted
Renovation Options Permitted w/ reduction in
LTV to 95% - must be
approved to deliver
HomeStyle Renovation
loans
Permitted w/ reduction in
LTV to 95% - must be
approved to deliver
HomeStyle Renovation
loans
Not Permitted Permitted subject to LTV
reduction to 95%
Buydown Options 3-2-1 and 2-1 Temporary
Buydowns allowed
3-2-1 and 2-1 Temporary
Buydowns allowed
2-1 Temporary Buydowns
Only
3-2-1 and 2-1 Temporary
Buydowns allowed
Non-Borrower Household
Income
Permitted as a
compensating factor in
DU to allow a DTI ratio
greater than 45% up to
50% - non-borrower
income is NOT considered
qualifying income
Not Permitted Not Permitted Not Permitted
Boarder Income Permitted with
documentation of at least
9 of most recent 12
months (averaged over 12
months) – up to 30% of
qualifying income
maximum
Not Permitted Permitted with 12
months’ of receipts and
up to 30% of qualifying
income
Not Permitted
Accessory Dwelling Units Rental Income allowed on
a 1-unit property with an
accessory unit – follow
existing rental income
guidelines for
documentation and
calculation
Not Permitted Not Permitted Not Permitted

3. Copyright© Mortgage Currentcy.com
All Rights Reserved
97 % Financing Options Comparison Chart
Comparing Fannie Mae HomeReady / Fannie Mae Standard 97 / Fannie Mae
MyCommunity / Freddie Mac HomePossible Advantage
Homeownership
Education
Required prior to Note
Date for at least one
borrower – through
Framework
Required prior to Note
Date for at least one
borrower when all
borrowers are relying
solely on nontraditional
credit to qualify (LTV
restricted to 95% since
manual underwriting
would be required)
Required prior to Note
Date
Required for at least one
qualifying borrower if all
borrowers are First-Time
Homebuyers
Mortgage Insurance 25% Coverage 35% Coverage 18% Coverage 18% Coverage
Secondary Financing Allowed to a CLTV of 105%
with Community Seconds
Allowed to a CLTV of 105%
with Community Seconds
Allowed to a CLTV of 105%
with Community Seconds
Allowed to a CLTV of 105%
with an Affordable Second
Underwriting Options DU only when LTV 95.01-
97%
DU only when LTV 95.01-
97%
DU only when LTV 95.01-
97%
LP only when LTV 95.01-
97%
Borrower Minimum
Contribution
None None None None
First Time Homebuyer
Requirement
Not Required Required Required Not Required
Loan Limits High Balance not eligible High Balance not eligible High Balance not eligible High Balance not eligible
Reserves Per AUS Per AUS Per AUS Per AUS
Qualifying Ratios Per AUS Per AUS Per AUS Per AUS