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Home Affordable Refinance Program Extended

This refinance option was designed to assist homeowners who have experienced home value declines. The program allows for a maximum loan to value of 105%. This means that the loan amount may exceed the current value of your home by 5%. For example, if the current payoff on your home, along with the fees to refinance equals $200,000, it must appraise for $190,476. The borrower must benefit from the refinance either by a reduced interest rate resulting in lower principal and interest payment or by moving into a more stable product, such as movement from an ARM into a fixed rate mortgage.

The guidelines for Fannie Mae & Freddie Mac are very similar.

• Existing Loan must be held or guaranteed by Fannie Mae or Freddie Mac, prior to March 1, 2009 and the refinance must be completed by June 30, 2012.
• Current lender\servicer can provide that information or go to the Fannie Mae or Freddie Mac website.

http://loanlookup.fanniemae.com/lookup/

https://ww3.freddiemac.com/corporate/

• The borrowers on existing mortgage must be identical and remain on the new mortgage. Additional borrowers may be added. (Freddie Mac) Borrower may be omitted due to death or divorce under certain circumstances.
• New mortgage must be a fixed rate mortgage or a fully amortized arm with an initial fixed period of 5 years or greater. Cannot be interest only.
• No Cash out to the borrower.
• Can only be used to refinance the 1st mortgage. Cannot combine 1st & 2nd mortgage.
• If you have a 2nd mortgage, as long as the 2nd lien holder is willing to subordinate the new guidelines do not limit the combined loan to value.
• No minimum credit score required, however borrower must meet Fannie/Freddie underwriting guidelines, including no mortgage lates in the last 12 months, no bankruptcy and no foreclosure.
• Refinance can be for primary residence, second homes and investment properties.
• Home Appraisal probably will be required, however, not in all cases.
• Employment and income verification will be required.
• If you have private mortgage insurance now, you will be required to have it on this refinance loan. If you do not have mortgage insurance now, you will not be required to have in regardless of the loan to value.
• The new loan will have loan level price adjustments for credit score and the loan to value and combined loan to value risks.
  

If you have any questions regarding your eligibility for this program, please feel free to contact me.  Remember the program ends June 30, 2012.

Thank you.