Perm financing to payoff a 2x construction loan CANNOT exceed 95% due to the following FNMA requirement (this includes Homeready & standard 97%:

HOMEREADY:

Maximum LTV, CLTV, and HCLTV Ratios
Refer to the Eligibility Matrix for maximum allowable LTV, CLTV, and HCLTV ratios for HomeReady mortgage loans. HomeReady loans that are originated in connection with manufactured homes must follow the more restrictive LTV, CLTV, and HCLTV ratios that apply. For example, the maximum LTV, CLTV, and HCLTV ratio for a one-unit HomeReady manufactured home is 95%.

Requirements for HomeReady Transactions with LTV, CLTV, or HCLTV Ratios of 95.01 – 97%
If the LTV, CLTV, or HCLTV ratio exceeds 95% for a HomeReady transaction, the following requirements apply.
Criteria Requirements
LTV, CLTV, or HCLTV Ratio 95.01 to 97%

Note: The CLTV ratio can be up to 105% if the subordinate lien is a Community Seconds loan.

Loan Purpose Purchase transactions or limited cash-out refinances only.
Existing Loan For limited cash-out refinances:
The lender must document that the existing loan being refinanced is owned (or securitized) by Fannie Mae. Documentation may come from
the lender’s servicing system,
the current servicer (if the lender is not the servicer),
Fannie Mae’s Loan Lookup tool, or
any other source as confirmed by the lender.
The lender must inform DU that Fannie Mae owns the existing mortgage using the Owner of Existing Mortgage field in the online loan application before submitting the loan to DU.

Note: This requirement does not apply if the CLTV exceeds 95% only due to a Community Seconds loan.

LIMITED CASH OUT 95 WITHOU LTV/CLTV/HCLTV 95.01-97%

Requirements for Limited Cash–Out Refinance Transactions with LTV, CLTV, or HCLTV Ratios of 95.01 – 97%

If the LTV, CLTV, or HCLTV ratio exceeds 95% for a limited cash-out transaction, the following requirements apply.

Criteria

Requirements

Existing Loan

The lender must document that the existing loan being refinanced is owned (or securitized) by Fannie Mae. Documentation may come from

the lender’s servicing system,
the current servicer (if the lender is not the servicer),
Fannie Mae’s Loan Lookup tool, or
any other source as confirmed by the lender.

The lender must inform DU that Fannie Mae owns the existing mortgage using the Owner of Existing Mortgage field in the online loan application before submitting the loan to DU.

Note: This requirement does not apply if the CLTV exceeds 95% only due to a Community Seconds loan.

Original question:

Here was Donna's response to my question:

"That would be an underwriting question for the help desk I believe. I have not seen a 3% down 2 time. I am not sure which product you are thinking of but I know one of them only allows a 3% dp if you are paying off a FNMA loan which would exclude our 2x product.

Donna Pratt"

I have a real customer that just signed a construction contract that wants to know.