I read an article in Mortgage Ledger today that said: "As of June 1, Freddie Mac said it will no longer purchase conventional mortgages or HELOCs with LTVs above 97%, as well as streamline purchase mortgages and Alt 97 mortgages with affordable seconds.
However, the government-sponsored enterprise (GSE) said it will continue to purchase FHA/VA Mortgages, Section 502 GRH Mortgages and Home Possible mortgages with a minimum credit score of 700.
Freddie Mac will require credit scores of at least 700 on Home Possible loans if the LTV or total LTV exceeds 97%, and the company will no longer allow secondary financing on Home Possible loans, with the exception of Affordable Seconds or RHS Leveraged Seconds."
They're still doing the Home Possible 100's.
Fannie Mae can't be far behind. Anyone have any news about Fannie Mae's plans on high LTV loans?
Larry Penilla
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