Loanto Value LTV ratios

Many borrowers who normally qualify for conforming programs, opt for the higher loan-to-value (LTV) ratio limits of non-conforming loans. Higher LTV ratios mean higher loan amount limits.

First of all, note that conforming loans have the following restrictively low LTV ratio limits for most of their loan programs:

  • Single-family purchase or No-cash-out refinance: 90%-95%
  • Two-unit purchase or No-cash-out refinance: 90%
  • Three- & four-unit purchase or No-cash-out refinance: 80%
  • Investor (non-owner-occupied property) purchase or No-cash-out refinance: 70%
  • Cash-out refinance (owner-occupied property): 75%
  • Cash-out refinance (investor: Non-owner-occupied property): 65%

If a property owner or investor wishes to purchase a property with lower down payment or refinance with a higher loan-to-value ratio, then a non-conforming loan program becomes the only option.

Perhaps the best programs that non-conforming lenders offer are zero or no down payment loans, which allow the purchase of both owner-occupied and investment properties with nothing down.

For more information about specific LTV ratio limits, please consult the "Loan-to-Value (LTV) ratios" and "No Down Payment Programs" articles.

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