themortgagellm™97% LTV FTHB: Fannie eligible, Freddie not
“Check GSE eligibility: purchase, 1-unit primary, $388K loan on $400K value, 720 FICO, 38% DTI, first-time homebuyer.”
Response
✅❌ Eligible to Fannie Mae only. Freddie Mac would not buy this loan as structured.
Loan parameters:
- Purchase, 1-unit primary residence, FRM (standard product)
- $388,000 loan on $400,000 value (LTV 97.00%)
- 720 FICO, 38.0% DTI, first-time homebuyer
- Underwriting: DU Approve / LPA Accept
Fannie Mae
✅ Eligible — meets standard delivery requirements.
Rules evaluated: fnm-em-2026-05-06-1u-primary-purchase-lcor-fthb, fnm-em-2026-05-06-guard-credit-floor
Passing checks:
- Max LTV: FRM 97% / ARM 95% (DU Approve required for >95%) — passes at 97.00% with FTHB + FRM
- Max CLTV / HCLTV: 97% — within ceiling
- Minimum representative credit score 620 — 720 well above floor
- Maximum DTI 50% — 38% well within
Freddie Mac
❌ Ineligible — fails one or more delivery checks.
Rules evaluated: fre-em-2026-05-06-1u-primary-purchase-no-cashout, fre-em-2026-05-06-guard-credit-floor
Failing checks:
- Max LTV 95% — observed LTV 97.00% (cite: Chapter 4203.1(b)(ii))
- Max TLTV 95% — observed TLTV 97.00% (cite: Chapter 4203.1(b)(ii))
- Max HTLTV 95% — observed HTLTV 97.00% (cite: Chapter 4203.1(b)(ii))
Why the diff? Fannie's Eligibility Matrix permits 97% LTV on a 1-unit principal residence purchase or LCOR when at least one borrower is a first-time homebuyer AND the loan is FRM (ARMs cap at 95%). Freddie's standard matrix in Chapter 4203.1(b)(ii) caps 1-unit primary purchase/no-cash-out at 95% regardless of FTHB status — the 97% ceiling on the Freddie side lives in the HomeOne® product (Section 4605.1), which carries its own underwriting and income limits and is not yet codified in this MVP.
To deliver this loan to Freddie, the borrower would need to either (a) bring the LTV down to ≤95% via additional down payment, or (b) qualify for HomeOne. To deliver to Fannie as-is, no changes needed.