97% LTV Conventional Refinance
Most PopularBest For: Flexible Terms, Rate Reduction
Fannie Mae's 97% LTV Refinance allows for high loan to value ratios—so those with limited equity can refinance to a lower rate or different term.
This loan program is not available in USA
Program Description
This program allows for current Fannie Mae mortgage holders to refinance with high LTV (loan to value) ratios, even if there is little to no equity in the home. Designed to help homeowners refinance into a lower monthly mortgage payment, lower rate, and/or shorter terms while continuing to enjoy all the benefits of their conventional mortgage.
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97% LTV Conventional Refinance
Min. Credit Score
620
Min. Equity
3%
Max Loan Amount
$766,550
Qualification variables shown here are for 1-Unit Primary Residences, and loan amount ranges vary based on US County. Register Now to see if this loan program is a good fit for you, find your county limits, and find more options for purchasing a home.
Pros & Cons
- Refinance with as little as 3% equity in your current home
- No income or home value limits
- No funding fee or permanent mortgage insurance
- No high-balance loan program available in high-cost areas
- Only available for 1-unit primary residences
- Only available to current Fannie Mae mortgage holders
Program Availability
97% LTV Conventional Refinances are available in all 50 states, Washington D.C., Puerto Rico, and the U.S. Virgin Islands.
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“Good News! You can utilize this type of refinance to take advantage of shorter terms and build equity in your home faster!"
Occupancy & Property Types
Qualification factors for this program can vary based on how you intend to occupy the property and what type of property you are purchasing. By registering for a free account , you can check program limits for all property and occupancy types.
Occupancy Types
Available Property Types for Primary Residence
Income & Purchase Price Limits
Your Debt-to-Income Ratio (DTI), as well as purchase price and income limits, are important factors when qualifying for a home loan program. By registering for a free account , you can find the exact program limits for this program and others in your area and for your unique scenario.
Debt-to-Income Limit
50.00%
Purchase Price Limit
No Limits
Income Limit
No Limits
Qualification variables shown here are for 1-Unit Primary Residences, and loan limit ranges vary based on US County. Amounts may be rounded. Exact amounts can be accessed by registering for a free account.
Refinancing?
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Key Features
- Lower your current interest rate
- Lower your current mortgage payments
- Shorten your current mortgage term
Additional Conditions
- Existing loan being refinanced must be owned (or securitized) by Fannie Mae
Other Limitations
In some circumstances, there are specific requirements you must meet or homebuyer education courses you must attend in order to be eligible for the loan program.
No other program limitations
A Homebuyer Education Class is not required for this loan program.
Mortgage Insurance & Fees
Most mortgage programs require mortgage insurance when you are financing more than 80% of the purchase price or appraised value. Some programs may also have an associated funding fee, paid at the time of closing, or an annual fee. Learn all about the different fees here.
Required with less than 20% Down Payment
Type: Private Mortgage Insurance (PMI)This program requires Private Mortgage Insurance (PMI) if you are putting down less than 20% on the home you are purchasing or refinancing.
Type: No Funding Fee
This program does not have a funding fee.
Type: No Annual Fee
This program does not have an annual fee.
Estimated Closing Costs: 2%
These amounts are just an estimate. Your closing costs include things like loan origination fees, discount points, appraisal fees, title insurance, taxes, deed recording fees, and other charges.
Similar Loan Programs
If you think this home loan program may be a good fit for you, you may also want to check out the following programs that share many similarities with the current program.
Conventional Rate-and-Term Refinance
Best For: Flexible Terms, Rate Reduction, Easy Process
Popular refinancing option for loan amounts under the conforming loan limit. Flexible qualification and attractive benefits to qualified homeowners.
HomeReady® Refinance
Best For: Low Credit Scores, Lowest Rates
Competitive pricing, affordable mortgage insurance and flexible qualification for refinancing a home with limited income and equity.
Related Resources
Knowing Your Mortgage Insurance Options (Conventional Loan PMI)
PMI is an important part of getting a mortgage, but it can vary in cost. Learn about the different types and what you should consider when budgeting for it here.
Read More
This is for Single-Income Homebuyers
The housing market is always changing, and today single-income homebuyers are quickly becoming one of the largest demographics to take part. While getting approved for a loan may take a bit more work for single applicants than those who are coupled or have dual incomes, it is certainly an attainable goal and often one that proves to be more affordable in the long run. Let's go over some of the things you'll want to prepare for as you begin your solo home buying journey.
Read More
A Rundown On Closing Costs and How They Affect You
It can be tricky to sift through all the figures , so we broke down what they are, how much they cost, who's responsible and how to minimize your expenses.
Read MoreVisit our Mortgage Education Center for more resources.
* Some loan programs may not be offered by all featured lenders of ReviewMyMortgage.com and qualification guidelines may vary between them. Our team makes their best effort to keep loan program information up to date. Loan programs may change without warning. ReviewMyMortgage.com does not guarantee or offer any loan products. ReviewMyMortgage.com is strictly an educational resource hub for consumers
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