For a 2-4 unit primary residence purchase, Fannie Mae (Desktop Underwriter) and Freddie Mac (Loan Product Advisor Accept) allow up to 95% LTV, and FHA allows 96.5 percent of the Adjusted Value with a Minimum Required Investment of 3.5 percent. Manually underwritten loans, Fannie Mae high-balance loans and Freddie Mac super conforming loans are capped lower: 85% for 2 units and 75% (Fannie Mae) or 80% (Freddie Mac) for 3-4 units. Fannie Mae requires six months of reserves for 2-4 unit principal residences, Freddie Mac requires six months on manually underwritten loans (otherwise what Loan Product Advisor requires), and FHA requires three months of PITI for 3-4 units. With gifts above 80% LTV, Fannie Mae requires a 5% contribution from the borrower's own funds; Freddie Mac's table lists none.
Fannie Mae (conventional)
- Desktop Underwriter: purchase and limited cash-out refinance loans on a 2-4 unit principal residence may go up to 95% LTV/CLTV/HCLTV, fixed-rate or ARM. Fannie Mae Eligibility Matrix
- High-balance 2-4 unit loans may not exceed 85% LTV/CLTV/HCLTV for 2 units or 75% for 3-4 units. Fannie Mae Eligibility Matrix
- Manual underwriting (purchase and limited cash-out refinance): maximum 85% for 2 units and 75% for 3-4 units, with minimum reserves of 6 months in both DTI bands. Fannie Mae Eligibility Matrix
- Desktop Underwriter requires six months' reserves for a two- to four-unit principal residence transaction. Fannie Mae B3-4.1-01
- When gifts are used and the LTV is greater than 80%, the borrower must make a 5% minimum contribution from their own funds before gifts can supplement the down payment, closing costs and reserves; HomeReady has its own requirements. Fannie Mae B3-4.3-04
Freddie Mac (conventional)
- Purchase and "no cash-out" refinance: Accept Mortgages (excluding super conforming) may reach 95% LTV/TLTV/HTLTV on 2-unit and 3- and 4-unit primary residences; manually underwritten and super conforming loans are limited to 85% (2-unit) and 80% (3- and 4-unit). Freddie Mac 4203.1
- Loan Product Advisor Mortgages: the Seller must verify the reserves Loan Product Advisor requires. Manually underwritten 2- to 4-unit primary residences need six months of reserves for the subject property. Freddie Mac 5501.2
- The table of minimum contributions from Borrower personal funds on purchases lists "None" for a Mortgage secured by a 1- to 4-unit Primary Residence; Home Possible and HeritageOne have separate rules. Freddie Mac 5501.3
FHA
- Purchase: the maximum LTV is 96.5 percent of the Adjusted Value, and the borrower must make a Minimum Required Investment of at least 3.5 percent. FHA 4000.1 II.A.2.b.ii FHA 4000.1 II.A.2.c.ii
- A Minimum Decision Credit Score at or above 580 is eligible for maximum financing; scores between 500 and 579 are limited to 90% LTV. FHA 4000.1 II.A.2.b.i
- Non-occupying borrower transactions are limited to 75 percent LTV; the family-member exception up to 96.5 percent does not apply to a two- to four-unit property. FHA 4000.1 II.A.2.b.ii
- Reserves of three months' PITI after closing are required for three- to four-unit properties under both TOTAL Scorecard and manual underwriting; manual underwriting also requires one month's PITI for one- to two-unit properties. FHA 4000.1 II.A.4.d.i FHA 4000.1 II.A.5.c.i
- Three- to four-unit properties must also pass a self-sufficiency test: PITI divided by the monthly net self-sufficiency rental income may not exceed 100 percent. FHA 4000.1 II.A.1.b.iv
Quick comparison
| Loan type | Maximum LTV (purchase) | Minimum reserves | Source |
|---|---|---|---|
| Fannie Mae, Desktop Underwriter | 95% (2-4 units); high-balance 85% (2 units), 75% (3-4 units) | Six months | Fannie Mae Eligibility Matrix; B3-4.1-01 |
| Fannie Mae, manual | 85% (2 units), 75% (3-4 units) | 6 months | Fannie Mae Eligibility Matrix |
| Freddie Mac, Accept (not super conforming) | 95% (2-4 units) | As required by Loan Product Advisor | Freddie Mac 4203.1, 5501.2 |
| Freddie Mac, manual or super conforming | 85% (2 units), 80% (3-4 units) | Six months (manual) | Freddie Mac 4203.1, 5501.2 |
| FHA | 96.5 percent of Adjusted Value | Three months' PITI (3-4 units) | FHA 4000.1 II.A.2.b.ii, II.A.4.d.i |
Sources
- Fannie Mae Eligibility Matrix, August 5, 2026 version: Standard Eligibility Requirements - Desktop Underwriter (PDF p. 2); Notes - Specific to Certain Transactions (PDF p. 8); Standard Eligibility Requirements - Manual Underwriting (PDF p. 4)
- Fannie Mae Selling Guide, September 2, 2026 version: B3-4.1-01, Minimum Reserve Requirements (p. 411); B3-4.3-04, Personal Gifts (p. 435)
- Freddie Mac Single-Family Seller/Servicer Guide, September 16, 2026 version: 4203.1(b)(ii), Maximum LTV, TLTV and HTLTV ratios (p. 4203-4); 5501.2(b), Minimum required reserves (p. 5501-13); 5501.3(k), Minimum contribution from Borrower personal funds (p. 5501-27)
- FHA Single Family Housing Policy Handbook 4000.1, August 12, 2026 version: II.A.2.b.ii, Purchase (p. 180); II.A.2.c.ii, Minimum Required Investment (p. 182); II.A.2.b.i, Loan-to-Value Limitations Based on Borrower’s Credit Score (p. 179); II.A.2.b.ii(B), LTV Limitations Based on Non-Occupying Borrower Status (p. 181); II.A.4.d.i(C), Reserves (TOTAL) (p. 253); II.A.5.c.i(C), Reserves (Manual) (p. 332); II.A.1.b.iv(B), Property Types (Three- to Four-Unit) (p. 171)
Agency guides set the baseline; individual lenders can add stricter overlays. Sources are the guideline versions in Zeitro Strata as of October 29, 2026.