This document is incorporated by reference into the
Fannie Mae Selling Guide.
© 2024 Fannie Mae. 1
February 07, 2024
The Eligibility Matrix provides the comprehensive LTV, CLTV, and HCLTV ratio
requirements for conventional first mortgage loans eligible for delivery to Fannie Mae. The
Eligibility Matrix also includes credit score, minimum reserve requirements (in months), and
maximum debt-to-income ratio requirements for manually underwritten loans. Other
eligibility criteria that are not covered in the Eligibility Matrix may be applicable for loans to
be eligible for purchase by Fannie Mae, e.g., allowable ARM plans. See the Selling Guide
for details. Refer to the last two pages of this document for exceptions to the requirements
shown in the matrices.
Acronyms and Abbreviations Used in this Document
ARM: Adjustable-rate mortgage, fully amortizing
DTI: Debt-to-income ratio
DU
®
: Desktop Underwriter
®
FRM: Fixed-rate mortgage, fully amortizing
LTV: Loan-to-value ratio
CLTV: Combined loan-to-value ratio
HCLTV: Home equity combined loan-to-value ratio
Credit Score/LTV: Credit score and highest of LTV, CLTV, and HCLTV ratios
Table of Contents
Standard Eligibility Requirements - Desktop Underwriter Page 2
HomeStyle® Renovation, Manufactured Housing, and HomeReady
®
-
Desktop Underwriter
Page 3
Standard Eligibility Requirements - Manual Underwriting Page 4
HomeStyle Renovation and HomeReady - Manual Underwriting Page 5
High LTV Refinance *Acquisition of high LTV refinance loans is
suspended
Page 6
Notes - Exceptions Applicable to ALL Matrices Other than High LTV
Refinance
Page 7-8
Notes - Specific to Certain Transactions Page 8-9
ELIGIBILITY MATRIX
© 2024 Fannie Mae. 2This document is incorporated by reference into the
Fannie Mae Selling Guide.
February 07, 2024
NOTE: THERE MAY BE EXCEPTIONS TO THE ABOVE REQUIREMENTS FOR CERTAIN TRANSACTIONS.
REFER TO THE NOTES SECTION ON PAGES 7-9 FOR THE EXCEPTIONS.
Transaction Type Number of Units Maximum LTV, CLTV, HCLTV
1 Unit
FRM: 97%
(1)
ARM: 95%
1 Unit FRM/ARM: 80%
2-4 Units FRM/ARM: 75%
Purchase
Limited Cash-Out Refinance
1 Unit FRM/ARM: 90%
Cash-Out Refinance 1 Unit FRM/ARM: 75%
1 Unit
FRM/ARM: 85%
2-4 Units FRM/ARM: 75%
1 Unit
2-4 Units FRM/ARM: 70%
Standard Eligibility Requirements - Desktop Underwriter Version 11.1
Excludes: High LTV Refinance, HomeReady, HomeStyle Renovation, and
Manufactured Housing
Principal Residence
Purchase
Limited Cash-Out Refinance
Cash-Out Refinance
Limited Cash-Out Refinance
Purchase
Cash-Out Refinance
Second Homes
Investment Property
1-4 Units
FRM/ARM: 75%
2- 4 Units
(2)
FRM/ARM: 95%
© 2024 Fannie Mae. 3This document is incorporated by reference into the
Fannie Mae Selling Guide.
February 07, 2024
NOTE: THERE MAY BE EXCEPTIONS TO THE ABOVE REQUIREMENTS FOR CERTAIN TRANSACTIONS.
REFER TO THE NOTES SECTION ON PAGES 7-9 FOR THE EXCEPTIONS.
Transaction Type Number of Units Maximum LTV, CLTV, HCLTV
1 Unit
FRM: 97%
(1)
ARM: 95%
Purchase
Limited Cash-Out Refinance
1 Unit FRM/ARM: 90%
Purchase 1 Unit
FRM/ARM: 85%
Limited Cash-Out Refinance 1 Unit FRM/ARM: 75%
Purchase
Limited Cash-Out Refinance
Cash-Out Refinance
1 Unit
FRM/ARM: 65%
Purchase
Limited Cash-Out Refinance
1 Unit FRM/ARM: 90%
Purchase
Limited Cash-Out Refinance
HomeReady Mortgage
Investment Property
Purchase
Limited Cash-Out Refinance
Principal Residence
Manufactured Housing
(4)
Principal Residence
Second Homes
HomeStyle Renovation, Manufactured Housing,
HomeReady
(3)
Desktop Underwriter Version
11.1
HomeStyle Renovation Mortgage
Second Homes
Principal Residence
Purchase
Limited Cash-Out Refinance
1 Unit
1 Unit
2 - 4 Units
2 - 4 Units
© 2024 Fannie Mae. 4This document is incorporated by reference into the
Fannie Mae Selling Guide.
February 07, 2024
NOTE: THERE MAY BE EXCEPTIONS TO THE ABOVE REQUIREMENTS FOR CERTAIN TRANSACTIONS.
REFER TO THE NOTES SECTION ON PAGES 7-9 FOR THE EXCEPTIONS.
Transaction
Type
Number of
Units
Maximum
LTV, CLTV,
HCLTV
Credit Score/LTV
Minimum
Reserves
Credit Score/LTV
Minimum
Reserves
680 if > 75%
640 if ≤ 75%
0
FRM: 620 if ≤ 75% 2
660 if > 75% 6
700 if > 75%
660 if ≤ 75%
6
2 Units
FRM/ARM: 85%
680 if > 75%
640 if ≤ 75%
6
700 if > 75%
680 if ≤ 75%
6
680 if > 75%
660 if ≤ 75%
0
660 if > 75%
640 if ≤ 75%
6
700 6
680 12
Standard Eligibility Requirements - Manual Underwriting
Excludes: High LTV Refinance, HomeReady, HomeStyle Renovation
6
660
Maximum DTI ≤ 36%
Maximum DTI ≤ 45%
Cash-Out
Refinance
Principal Residence
720 if > 75%
680 if ≤ 75%
0
6
2
6
2-4 Units
FRM/ARM: 75%
680
Purchase
Limited Cash-
Out Refinance
3-4 Units
FRM/ARM: 75%
700 if > 75%
680 if ≤ 75%
FRM/ARM: 80%
1 Unit
FRM/ARM: 95%
1 Unit
680
© 2024 Fannie Mae. 5This document is incorporated by reference into the
Fannie Mae Selling Guide.
February 07, 2024
NOTE: THERE MAY BE EXCEPTIONS TO THE ABOVE REQUIREMENTS FOR CERTAIN TRANSACTIONS.
REFER TO THE NOTES SECTION ON PAGES 7-9 FOR THE EXCEPTIONS.
Transaction Type
Number of
Units
Maximum
LTV, CLTV, HCLTV
Credit Score/LTV
Minimum
Reserves
Credit Score/LTV
Minimum
Reserves
680 if > 75%
640 if ≤ 75%
0
720 if > 75%
680 if ≤ 75%
0
FRM: 620 if ≤ 75% 2 6
660 if > 75% 6 6
680 if > 75%
640 if ≤ 75%
0
720 if > 75%
680 if ≤ 75%
0
FRM: 620 if ≤ 75%
2
660 if > 75% 6
3-4 Units
FRM/ARM: 75%
660
6
Purchase
Limited Cash-Out
Refinance
6
FRM/ARM: 85%
FRM/ARM: 95%
2 Units
1 Unit
680 if > 75%
640 if ≤ 75%
700 if > 75%
680 if ≤ 75%
6
680
HomeStyle Renovation and HomeReady - Manual Underwriting
(3)
Maximum DTI ≤ 36%
Maximum DTI ≤ 45%
Purchase
Limited Cash-Out
Refinance
1 Unit
3-4 Units
FRM/ARM: 85%
6
700 if > 75%
660 if ≤ 75%
6
Principal Residence
HomeReady Mortgage
FRM/ARM: 75%
FRM/ARM: 95%
680 if > 75%
640 if ≤ 75%
HomeStyle Renovation Mortgage
Principal Residence
6
2 Units
6
660
680
6
700 if > 75%
680 if ≤ 75%
6
700 if > 75%
660 if ≤ 75%
© 2024 Fannie Mae. 6This document is incorporated by reference into the
Fannie Mae Selling Guide.
February 07, 2024
NOTE: THERE MAY BE EXCEPTIONS TO THE ABOVE REQUIREMENTS FOR CERTAIN TRANSACTIONS.
REFER TO THE NOTES SECTION ON PAGES 7-9 FOR THE EXCEPTIONS.
Transaction Type Number of Units
Minimum LTV Maximum LTV
Minimum Credit
Score
Maximum DTI
Ratio
1 Unit 97.01
2 Units
85.01
3-4 Units 75.01
Desktop Underwriter
Second Home 1 Unit 90.01
Investment Property 1-4 Units 75.01
1 Unit 97.01
2 Units 85.01
3-4 Units 75.01
Second Home 1 Unit 90.01
Investment Property 1-4 Units 75.01
Principal Residence
FRM: No Limit
ARM: 105%
620
45%
FRM: No Limit
ARM: 105%
No Minimum
No Maximum
Limited Cash-Out Refinance, Fixed Rate, ARMs with Initial Fixed Periods > 5 Years
Desktop Underwriter and Manual Underwriting
High LTV Refinance
(5)
Acquisition of high LTV refinance loans is suspended*
Manual Underwriting
Principal Residence
Standard Eligibility
Alternative Qualification Path
© 2024 Fannie Mae. 7This document is incorporated by reference into the
Fannie Mae Selling Guide.
February 07, 2024
Notes – Exceptions Applicable to ALL Matrices
Other than High LTV Refinance
105% CLTV Ratio/Community Seconds
®
: The CLTV ratio may exceed the limits stated in the matrices
up to 105% only if the loan is part of a Community Seconds transaction. A loan securing a manufactured
home that is not MH Advantage that has a Community Seconds is limited to the LTV, CLTV, and HCLTV
ratios stated in the matrices.
The following are not permitted with Community Seconds: second homes, investment properties, cash-
out refinances, ARMs with initial adjustment periods less than 5 years, and co-op share loans.
Cash-out refinances: Minimum reserves apply to DU loan casefiles with DTI ratios exceeding 45%.
See B2-1.3-03, Cash-Out Refinance Transactions.
Condos: Lower LTV,CLTV, and HCLTV ratios may be required for certain loans depending on the type
of project review the lender performs for properties in condo projects. See B4-2.1-01, General
Information on Project Standards, B4-2.2-01, Limited Review Process, and B4-2.2-04, Geographic-
Specific Condo Project Considerations.
Construction-to-permanent: These transactions are subject to the applicable eligibility requirements
based on the loan purpose. Single-closing transactions are processed as purchases or limited cash-out
refinances, and two-closing transactions are processed as limited cash-out or cash-out refinances.
Exceptions: loans secured by units in a co-op project or attached units in a condo project are not eligible
for construction-to-permanent financing. If the transaction is a single-closing construction-to-permanent
loan, and the age of the credit or appraisal documents exceed standard guidelines, there are exceptions
to the eligibility requirements. See B5-3.1-02, Conversion of Construction-to-Permanent Financing:
Single-Closing Transactions.
Co-op properties: The following are not permitted with co-op share loans - subordinate financing,
investment properties, and cash-out refinances on second home properties.
Employment-related assets: Exceptions to the eligibility requirements apply if this type of asset is used
as qualifying income. See B3-3.1-09, Other Sources of Income.
High-balance loans: High-balance loans must be underwritten with DU. All borrowers on the loan must
have a credit score.
HomeStyle
®
Energy: For manually underwritten loans, the criteria that applies to DTI ratios of 36% may
apply up to 38% for HomeStyle Energy loans. (DTI ratios up to 45% are also permitted in accordance
with this matrix.) See B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties. Loans with
energy-related improvements are subject to the applicable LTV, CLTV, and HCLTV ratios for purchase
and limited cash-out refinance transactions.
Manufactured housing: Loans secured by manufactured homes (including MH Advantage) must be
underwritten with DU.
Multiple financed properties: Borrowers of second homes or investment properties with multiple
financed properties are subject to additional reserves requirements. Borrowers with seven to ten
financed properties are subject to a minimum credit score requirement (only permitted in DU). See B3-
4.1-01, Minimum Reserves Requirements.
© 2024 Fannie Mae. 8This document is incorporated by reference into the
Fannie Mae Selling Guide.
February 07, 2024
Notes – Exceptions Applicable to ALL Matrices
Other than High LTV Refinance
Non-occupant borrowers: If the income of a non-occupant borrower is used for qualifying purposes,
lower LTV, CLTV, or HCLTV ratios are required, and exceptions apply if there is a subordinate lien that
is a Community Second. See B2-2-04, Guarantors, Co-Signers, or Non-Occupant Borrowers on the
Subject Transaction. See also Note (1) below.
Nontraditional credit: Exceptions to the eligibility requirements apply to all transactions when no
borrowers have a credit score, or one or more borrowers are relying on nontraditional credit to qualify.
See B3-5.4-01, Eligibility Requirements for Loans with Nontraditional Credit.
RefiNow™ loans: These loans must be secured by fixed-rate, one-unit principal residences, with a
limited cash-out refinance transaction that has specific requirements. High-balance loans are not
permitted. A RefiNow loan may not be combined with a HomeReady refinance transaction. See LL-
2021-10 for additional information and exceptions to this Matrix.
Notes - Specific to Certain Transactions
(1) LTV, CLTV, or HCLTV Ratios Greater than 95%: These transactions are not permitted for
high-balance loans, manufactured homes that are not MH Advantage, or HomeReady loans
with sweat equity. At least one borrower on the loan must have a credit score. For non-
HomeReady purchase transactions without a Community Seconds, at least one borrower must
be a first-time home buyer. For limited cash-out refinances, Fannie Mae must be the owner of
the existing mortgage. See B2-1.3-01, Purchase Transactions and B5-6-01, HomeReady
Mortgage Loan and Borrower Eligibility.
If there is a non-occupant borrower on the transaction:
• Manually underwritten loans: LTV/CLTV/HCLTV ratio <
90%*
• DU loan casefiles: LTV/CLTV/HCLTV ratio <
95%
• Both: CLTV ratio <
105% with a Community Seconds
*For RefiNow loans, LTV/CLTV/HCLTV ratio <
95% is permitted.
(2) LTV, CLTV, or HCLTV Ratios for High-Balance 2-4 Unit Properties:
• 2 unit: <
85%
• 3-4 unit: <
75%
(3) Combination of HomeStyle Renovation, HomeReady, and Manufactured Housing: If a
transaction includes a combination of HomeStyle Renovation, HomeReady, and manufactured
housing, the more restrictive eligibility requirements of each of those transactions apply. DU will
apply the applicable eligibility requirements, but the lender must determine eligibility for
manually underwritten loans.
Examples:
1. A HomeReady mortgage that is also a HomeStyle Renovation mortgage must be a
principal residence (per HomeReady). The lender must meet the HomeStyle Renovation
lender approved requirements, as applicable.
2. A HomeReady mortgage for a manufactured home (that is not MH Advantage) must be a
one-unit property that is underwritten through DU with a maximum LTV ratio of 95% (per
manufactured housing), and a purchase or limited cash-out refinance of a principal
residence (per HomeReady).
© 2024 Fannie Mae. 9This document is incorporated by reference into the
Fannie Mae Selling Guide.
February 07, 2024
Notes - Specific to Certain Transactions
(4) Single-width Manufactured Homes: Loans are limited to principal residence purchase and
limited cash-out refinance transactions only.
(5) High LTV Refinance: Loans are subject to a unique limited cash-out refinance definition, and
other unique requirements. There is no maximum CLTV or HCLTV ratio limit. See Chapter B5-
7, High Loan-to-Value Refinance Option for additional eligibility requirements.
Acquisition of high LTV refinance loans is suspended*