Fannie Mae-No Politics (FNMA)

[clarencebeaks21]

Really? You didnt know F/F buy and guarantee conventional loans over 80% LTV?!?!

You might be thinking of the fact that their charters preclude a guarantee exceeding 80%, which is true. But that doesn’t preclude them from buying & dealing in higher LTVs. To do so, a PMI company (e.g., MGIC, Radian, Essent) just has to commit to cover the ‘first loss position’ (eg., “20% cover”). This is all handled by automation via the originator, now. Click. Boom.
Still, F/F do NOT buy ‘purchase money’ loans over 97 LTV. But even at the 97 max, the buyers’ 3% down payment can now be a family gift, subject to underwriting approval.