Jeff, with all due respect, from all of the answers that Al has given, I see that he is a very experienced and knowledgeable loan officer. So, maybe you need to do a little more checking. On Fannie Mae loans, even if you get a DU approve, if you are over 45 the bank guidelines will say that you cannot do the loan. However, the identical loan, if run through LP, getting an accept, can be sold to a Freddie Mac lender.
Pete and Sharon, what you might be referring to however, is the fact that even if the lender would approve a loan that needs PMI, the PMI company will not allow the ratio to go over 41, where you can get the same loan approved through FHA, and use much higher ratios.