The maximum loan-to-value (LTV) ratio depends on the type of loan and your individual financial profile. LTV represents the percentage of a property’s value that is being financed. Here are general guidelines:
Conventional Loans
Loans backed by Fannie Mae or Freddie Mac may allow LTV ratios up to approximately 95–97% for certain qualified borrowers, meaning as little as 3–5% down. Loans with higher LTVs typically require private mortgage insurance (PMI).
FHA Loans
Loans insured by the Federal Housing Administration (FHA) may allow LTV ratios up to 96.5%, subject to eligibility requirements. FHA loans require mortgage insurance premiums.
VA Loans
Loans backed by the Department of Veterans Affairs (VA) may allow eligible borrowers to finance up to 100% of the home’s value in many cases.
Jumbo Loans
Jumbo loans often have lower maximum LTV limits compared to conforming loans. The specific maximum depends on the loan size, property type, and borrower qualifications.
The exact maximum LTV available to you will depend on your credit profile, income, property type, and current underwriting guidelines. A licensed Mortgage Loan Officer can review your specific scenario and explain your options.