Fannie Mae Standard and High Balance Product Profile - 08.28.26

Sep 16, 2026

Upload by Franzy

Fannie Mae-DU correspondent product profile outlining eligibility and delivery guidance for standard and high-balance loans, covering purchase and limited cash-out refinance, occupancy and property type distinctions, and term structures including fixed-rate and fixed-period ARMs. Includes overlays and exceptions such as Non-Del Only constraints, LTV/CLTV/HCLTV limits by unit and scenario, and key underwriting delivery requirements. Details ATR/QM compliance expectations, document age standards, and appraisal options including Value Acceptance, property data collection timing, desktop appraisal eligibility, and leasehold estate appraisal narrative requirements.

LanguageEnglish

CategoryGeneral

FormatPDF

Pages17

Reading Time6 min

AccessFree to download

Fannie Mae Standard and High Balance Product Profile

Loan scope and overlays

LTV/CLTV/HCLTV limits by scenario

Maximum loan amounts and guidance links

Ability to Repay and Qualified Mortgage (ATR/QM) rule

Age of documents

Appraisals and appraisal programs

Desktop appraisal and leasehold estate requirements

Pennymac Correspondent Fannie Mae Standard and High Balance Product Profile 08.28.26 Overlays to Fannie Mae are underlined. Overlays indicated as Non-Del Only are specific to Non-Delegated loans only | | | | | | | --- | --- | --- | --- | --- | | Agency | Fannie Mae-DU Approval | | | | | Finance Type | Purchase and Limited Cash-Out Refinance | | Cash-Out Refinance | | | Occupancy | Primary Residence | | Primary Residence | | | Term | Fixed Rate and Fixed Period ARMs | | Fixed Rate and Fixed Period ARMs | | | 1 High balance or
transactions with nonoccupant co-borrowers are limited to 95% LTV/CLTV
2 Loans with Community
Seconds may be eligible up to 105% CLTV. See Down Payment Assistance section.
*2-Unit: High balance max. LTV/CLTV, HCLTV 85%
**3-4 Units-High balance max. LTV/CLTV, HCLTV 75% | Property Type | LTV / CLTV / HCLTV2 | Property Type | LTV / CLTV / HCLTV | | | 1 Unit | FRM 971
ARM 95 | 1 Unit | 80 | | | 2 Unit | 95* | 2-4 Unit | 75 | | | 3-4 Unit | 95** | | | | | Second Home | | Second Home | | | | Fixed Rate and Fixed Period ARMs | | Fixed Rate and Fixed Period ARMs | | | | Property Type | LTV / CLTV / HCLTV | Property Type | LTV / CLTV / HCLTV | | | 1 Unit | 90 | 1 Unit | 75 | | | Investment Property | | Investment Property | | | | Fixed Rate and Fixed Period ARMs | | Fixed Rate and Fixed Period ARMs | | | | Property Type | LTV / CLTV / HCLTV | Property Type | LTV / CLTV / HCLTV | | | 1 Unit-Purchase | 85 | 1 Unit | 75 | | | 1 Unit Limited Cash-Out Refi | 75 | | | | | 2-4 Unit | 75 | 2-4 Unit | 70 | | | | | | | | Maximum Loan Amounts | Current Guidance is available at: [https://www.fanniemae.com/singlefamily/loan-limits](https://www.fanniemae.com/singlefamily/loan-limits) | | | --- | --- | --- | | Ability To Repay and Qualified Mortgage Rule | •
••
• | For loans subject to the ATR/QM rule, Pennymac will only purchase loans that comply with the ATR/QM requirements.
o Note: Investment properties which are for business purposes (borrower does not intend to occupy for greater than 14 days in the year) are exempt from ATR/QM; however, such loans must meet agency eligibility requirements and are subject to the applicable points and fees threshold.
Correspondents are responsible for providing evidence of compliance with the ATR/QM rules.
Clear itemization of fees and application of all credits that indicate paid by/to will be required on all loans.
See Selling Guide section "Ability to Repay and Qualified Mortgage Rule" under "Delivery Procedures" for more details. | | Age of Documents | •
• | For new and existing construction, credit documents must be no more than 4 months old on the date the note is signed, including credit reports and employment, income and asset documents.
Preliminary title policies must be no more than 180 days old on the date the note is signed. | | Appraisals | ••
• | Minimum appraisal requirement as determined by DU. Approve/Eligible finding is required.
The use of Value Acceptance is allowed when the final submission of the loan casefile to DU results in a Value Acceptance offer. A Value Acceptance offer may not be exercised if any of the following apply:
o DU is unable to identify ineligible criteria including but not limited to Texas 50(a)(6)
o An appraisal report is required by state law
o Rental income is used to qualify the borrower
o An appraisal is warranted based on additional information received about the property or subsequent events
o If a full appraisal is obtained, the appraisal must be used
Value Acceptance + property data (PDC) is eligible for certain loan casefiles where DU offers Value Acceptance + PDC
o DU Approve / Eligible required
o One-unit properties only
o Condos (attached and detached) are eligible
o Ineligible transactions include:
▪ Manufactured homes
▪ Investment properties where rental income is used to qualify
▪ Proposed construc

FAQs

What does the “Non-Del Only” overlay indicate in this product profile?

It specifies that certain requirements apply only to non-delegated loans, as indicated by the underlined overlays and Non-Del only notes.

What are the ATR/QM-related responsibilities for correspondents?

Pennymac will only purchase loans that comply with ATR/QM requirements, and correspondents must provide evidence of compliance, including clear fee itemization and credits that indicate amounts paid by/to the parties.

What document age and appraisal timing requirements are included?

For new and existing construction, credit documents must be no more than 4 months old on the note-signing date. Preliminary title policies must be no more than 180 days old on the note-signing date, and Value Acceptance property data must be obtained after the initial DU offer and submitted before the note date.

Sep 16, 2026

Upload by Franzy