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Is there a combined loan-to-value ratio (CLTV) or home equity CLTV (HCLTV) limit?

April 26, 2017cltv combined home equity limit loan-to-value ratio

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Is there a combined loan-to-value ratio (CLTV) or home equity CLTV (HCLTV) limit?

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No. All existing subordinate financing must be resubordinated by the current lienholder without regard to any limit on CLTV or HCLTV. Note, however, that the lender must calculate the CLTV for the new loan and provide to Fannie Mae. See Announcement 09-37 and Q6 for information related to Refi Plus (DU or manual) transactions with existing subordinate financing.