We recently made clear that Fannie Mae and Freddie Mac are completely different entities, and how Freddie is much more flexible with respect to many underwriting guidelines. In light of this, I am often shocked by the large number of loan officers who have no access to Freddie at their companies.
Freddie has much higher loan-to-value limits for “high balance” loans (over $417,000). Freddie lends up to 80% LTV for high balance investment purchases (Fannie only lends to 65% LTV); Freddie lends up to 75% LTV for high balance cash out loans, while Fannie only lends to 60% LTV.
Freddie is also far more lenient when it comes to new condos and condo conversions, and this is a life-saver in the Bay Area where condo conversions are so prevalent.
We have several funding sources with 100% access to Freddie with no overlays. We could not do our jobs without these sources. Does your lender have 100% access to Freddie?
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646