Under HomeOne guidelines, what is the maximum LTV allowed for a primary residence purchase if at least one borrower has not owned a home in the last 3 years?

Under HomeOne guidelines, what is the maximum LTV allowed for a primary residence purchase if at least one borrower has not owned a home in the last 3 years?

• A. 90%
• B. 97%
• C. 80%
• D. 75%

Answer: (B)

Under the HomeOne guidelines, the maximum loan-to-value (LTV) ratio allowed for a primary residence purchase is 97% for eligible borrowers, particularly when at least one borrower is classified as a first-time homebuyer. This classification is significant because it is designed to assist those individuals or families who have not owned a home in the last three years, allowing them greater access to home financing options. The 97% LTV means that the borrower can finance up to 97% of the home's value, which minimizes the down payment requirement to just 3%. This feature is especially beneficial for first-time homebuyers who may have limited savings and need more flexible financing options to make homeownership attainable. Options with lower LTV percentages, such as 90%, 80%, or 75%, typically require larger down payments and are less accessible for those just entering the home buying process. Thus, the 97% LTV under HomeOne provides a significant advantage for first-time homebuyers, facilitating their ability to purchase a home.

Under the HomeOne guidelines, the maximum loan-to-value (LTV) ratio allowed for a primary residence purchase is 97% for eligible borrowers, particularly when at least one borrower is classified as a first-time homebuyer. This classification is significant because it is designed to assist those individuals or families who have not owned a home in the last three years, allowing them greater access to home financing options.

The 97% LTV means that the borrower can finance up to 97% of the home's value, which minimizes the down payment requirement to just 3%. This feature is especially beneficial for first-time homebuyers who may have limited savings and need more flexible financing options to make homeownership attainable. Options with lower LTV percentages, such as 90%, 80%, or 75%, typically require larger down payments and are less accessible for those just entering the home buying process. Thus, the 97% LTV under HomeOne provides a significant advantage for first-time homebuyers, facilitating their ability to purchase a home.