Originating & Underwriting

High LTV Refinance Option

Help for underwater borrowers

The Fannie Mae high LTV refinance option provides refinance opportunities to borrowers who are paying their existing Fannie Mae mortgage on time but have a loan-to-value (LTV) ratio that exceeds the maximum allowed for a standard limited cash-out refinance.

Borrower Benefit

Borrowers must benefit from the refinance in at least one of the following ways:

  • Reduced monthly principal and interest payment

  • Lower interest rate

  • Shorter amortization term

  • More stable mortgage products, such as moving from an adjustable-rate mortgage to a fixed-rate mortgage


  • Transferable mortgage insurance to the new loan

  • Simplified documentation requirements for employment, income, and assets

  • Both Desktop Underwriter® (DU®) and manual underwriting options are available to the same or a new servicer