FHLMC Product Updates

Home Possible:

• Maximum LTV for 2-4 units for both Purchase and Rate and Term refinances is being reduced from 95% to 85%.
  • CLTV restrictions of 95% will remain

Solar Panels:

• When considering properties with solar panels, the Underwriter must evaluate ownership of the solar panels and any liens upon the property relating to debt or lease payments used to obtain the solar panels.
  • FHLMC has added a table that provides guidance on:
    • Instances when the seller is not required to obtain a subordination agreement (when a UCC-1 Financing Statement or lease agreement is present)
    • Appraisal requirements when solar panels are present
    • Impacts to the debt payment-to-income ratio
    • Impacts to the TLTV ratio
• Specifying that title policy or attorney’s opinion of title exceptions for liens and leases, including UCC-1 Financing Statements, for solar panels are acceptable, provided the exception for a lien or lease that lists only the solar panels as the collateral.

Refer to Sections 4702.4 & 5601.2 of FHLMC seller guide for specifics.

Should you have any additional questions, please contact your Account manager.