Standard 95% LTV Loan Program

The Standard 95% LTV Loan Program is a Conventional mortgage option for buyers who have a larger down payment than the 97% LTV programs but still want the flexibility of low down payment Conventional financing. With just 5% down, this loan helps buyers secure a home without the stricter requirements of FHA or higher-cost alternatives.

What Is the Standard 95% LTV Loan?

The 95% LTV (Loan-to-Value) program is a Conventional loan that allows buyers to put down 5% while enjoying the benefits of flexible terms, competitive rates, and the ability to cancel PMI once they reach 20% equity.

How It Works

Down Payment: 5% minimum.
Credit Score Requirement: 620+ (higher scores get better rates and terms).
Mortgage Insurance: Required with less than 20% down, but cancellable once 20% equity is achieved.
Property Types: 1–4 unit primary residences, condos, and PUDs.
Loan Purpose: Purchases and limited cash-out refinances.

Benefits of the Standard 95% LTV Loan

Only 5% down payment required.
Broader eligibility than 97% LTV first-time buyer programs.
Conventional financing (no FHA mortgage insurance premium).
PMI can be removed after reaching 20% equity.
More flexibility with income and property types than first-time buyer programs.

Fun Facts & Insider Details

Not Just for First-Time Buyers: Unlike 97% LTV programs, repeat buyers can also use 95% LTV loans.
Better Long-Term Costs: Mortgage insurance rates may be lower compared to 97% LTV programs, since you’re putting more down.
Higher Loan Amounts Allowed: Since it’s a standard Conventional program, you’re not limited to just “affordable housing” guidelines.
Flexible Property Types: Can be used for up to 4-unit homes (as long as one unit is owner-occupied).

Who Is the Best Candidate for the 95% LTV Loan?

Buyers with at least 5% saved for a down payment.
Repeat buyers looking for Conventional financing.
Borrowers who don’t meet the restrictions of HomeReady, Home Possible, or HomeOne.
Buyers who want the ability to cancel PMI in the future.

FAQs – Standard 95% LTV Loan

How is this different from the 97% LTV programs?

With 95% LTV, you’ll put down slightly more (5% instead of 3%), but in exchange, you often get lower PMI and broader eligibility.
Can this be used for investment properties?

No. Standard 95% LTV loans are for primary residences.
Is PMI permanent?

No. Mortgage insurance can be cancelled once 20% equity is reached, unlike FHA loans.
Do I have to be a first-time homebuyer?

No. This program is available for both first-time and repeat buyers.

Next Step

Thinking about the 95% LTV Loan? Let’s explore how it compares to other Conventional and FHA options for your situation.

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⚖️ Disclaimer: This guide is for educational purposes only. Loan approval and terms depend on credit, income, assets, property type, and program guidelines.