Change to super-conforming Home Possible mortgages

[Chris Parker]

Just drawing attention to something I got bit by recently:

Home Possible mortgages used to permit 95% LTV on a super conforming mortgage for a personal residence, up to 4 units. 

Rules recently-ish changed such that the LTV limit for super conforming mortgages is 95/85/80% for 1/2/3-4 units. Non-super conforming mortgages remain unaffected.

You can verify this with section 4501.10 of the Freddie Mac "Single-Family Seller/Servicer Guide", updated just a few weeks ago: Feb 6th 2019. 

This is pretty disappointing from the point of view of a newbie Bay Area investor, as 3-4 units fail the FHA self-sufficiency test. Thankfully my job only requires I be physically in the office infrequently, so I could owner-occupy for a year  in "nearby" areas (Modesto, Stockton, Sacramento, etc)... but it is still a major course correction.