Home buyers were given earlier this year HomePath (up to 97% financing with no mortgage insurance or appraisal requirements). This month Fannie Mae is rolling out Home Affordability (or “Refi Plus”) for current homeowners that are over 80% loan-to-value (LTV) in today’s market that want to take advantage of today’s low rates before they go back up.
Here are the guidelines to see if you qualify:
Borrower Eligibility
Current mortgage loan must currently be owned by FNMA
The new loan must benefit the borrower (IE - New lower Principal and Interest (P&I) payment or going into a fixed rate mortgage)
Existing mortgage loan must be current and must have been delivered to FNMA prior to March 1, 2009
Bankruptcies must be at least 4 years old and Foreclosures a minimum of 7 years
Minimum credit score of 620
Property Eligibility
Condo/PUDs - All (No project warranty required)
Owner Occupied (Primary Residence) on Single Family or Duplex
After May 2, 2009 - Owner Occupied, Second Homes, and Investment for Single Family, Duplex, Triplex, and Quadplex
Miscellaneous
Must be a 30 Year Fixed Rate Mortgage (No interest only option available)
Limited Cash Out - Can payoff current 1st mortgage, closing costs, and pre-pays (a possible of $2000 max or 2% of new loan cash back)
Existing 2nd mortgages must be re-subordinated - No maximum CLTV (Combined Loan-to-Value: First Mortgage + Second Mortgage divided by value)
All current borrowers must remain on the new loan, but new borrowers can be added
W2 income must be proved with only 1 pay stub and verification of employment
Commissioned or Self-Employed income must be proved with most recent years 1040
If current loan does not have Mortgage Insurance (MI), then new loan will not have MI (verified by current statement). If loan does have MI, then the new loan is eligible for refinance after May 2, 2009, at which time MI will allow for lower coverage
Appraisal Waivers are allowed - subject to FNMA approval
FEMA’s Federal Disaster List - if property was in a disaster ares within the past 2 years, then a drive-by appraisal is required to warrant no damage via photos
