DU Refi Plus Making Home Affordable

DU Refi Plus Making Home Affordable

Fresh news of the press straight from Fannie Mae:

“High-balance mortgage loans, including those using the temporary high-cost area loan limits, are eligible for Refi Plus and DU Refi Plus. “

 

Find out if you qualify: Click Here

 On March 4, 2009, the Department of the Treasury announced details of the new “Making Home Affordable” plan, which will help millions of Homeowners across the Country to take advantage of the today’s low interest rates.  The specific loan program is called “Refi Plus” and will help Borrower’s who have previously been unable to refinance solely because of a reduction in the value of their homes (which is obviously something beyond the Homeowner’s control).  Although there are specific details within the program, a summary is listed below for you to reference (or you may click here to have a mortgage professional contact you to see if you qualify):

 

  • Maximum Loan-to-Value (LTV) has been increased to 105%
    • For example: if your home is worth $100,000, your new 1st mortgage can be as high as $105,000
  • There is no maximum Combined-Loan-to-Value (CLTV), which means that if you also have a 2nd mortgage (or Home Equity Line of Credit) this will not prevent you from getting a new loan
    • For example: if your home is worth $100,000, and you currently owe $102,000 on a 1st mortgage, and $75,000 on a 2nd mortgage, you can still qualify for a new 1st mortgage (your current 2nd mortgage would not be affected)!
  • Eligible Properties:
    • Primary Residences (1-4 units)
    • Second Homes (1 unit)
    • Investment Properties (1-4 units)
  • Loan Amounts up to $729,750
  • Private Mortgage Insurance (PMI)
    • If you do not currently have PMI on your loan, you will not be required to obtain PMI for your new loan!
    • If you currently have PMI on your loan, you will need to obtain PMI on your new loan.
  • Restrictions:
    • You can only payoff your existing 1st mortgage with this program (if you currently have a 2nd mortgage, you may not combine the 2 mortgages into one new loan).
    • Cash-Out is limited to 2% of your new loan amount of $2000 (whichever is less)
    • You must provide income documentation
  • Appraisals:  In many cases, a new appraisal will not be necessary!
  • Credit History
    • No minimum credit scores have been identified
    • Credit restrictions pertaining to Bankruptcy, Mortgage Delinquencies, and/or Foreclosures will apply

If you can no longer afford to make your monthly loan payments, either because your interest rate has increased or you have less income or you are experiencing a hardship that has increased your expenses (like medical bills), you may qualify for a loan modification to make your monthly mortgage payment more affordable. Millions of borrowers who are current, but having difficulty making their payments and borrowers who have already missed one or more payments may be eligible.

Do I qualify for a Home Affordable Modification? Answer these questions:

  1. Is your home your primary residence?
  2. Is the amount you owe on your first mortgage equal to or less than $729,750?
  3. Are you having trouble paying your mortgage? For example, have you had a significant increase in your mortgage payment OR reduction in your income since you got your current loan OR have you suffered a hardship that has increased your expenses (like medical bills)?
  4. Did you get your current mortgage before January 1, 2009? 

 If your answer is yes click here

 – OR –

If your answer is no

 

Read about:   Why Be Pre-Approved for a Home Loan When Still Shopping for a House

To qualify for loan modification, you must answer ‘Yes’ to all four questions.
Otherwise, you may be eligible for further options.

 

 

 

 

 

 

 

 

 

 

 

Home Affordable Refinance provides refinance opportunities to borrowers with existing Fannie Mae loans who have demonstrated an acceptable payment history on their mortgage but due to declining home prices have been unable to refinance to obtain a lower payment or move to a more stable product. Refi Plus offers lenders two underwriting options for Fannie Mae to Fannie Mae refinances.The Refi Plus options are intended to assist borrowers by providing a benefit that seeks to ensure long-term homeownership sustainability. The lender must represent and warrant that the borrower is receiving a benefit in the form of either:

 A reduced monthly mortgage principal and interest payment; or
A more stable mortgage product; for example, movement from an ARM to a fixed-rate mortgage (lenders are encouraged to provide fixed-rate mortgages to borrowers whenever possible).

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