The details of the "Obama Refinance Program" AKA The Home Affordable Refinance Program have been released. There are two different versions of the plan and depending upon who your servicer is there are different components to each. One is for Freddie Mac serviced loans and the other is for Fannie Mae serviced loans. I have provided links to both for you below to see if you are eligible for either program.
The information below provides an overview of the current program guidelines. This program is new as of April 1st 2009 so be aware that they are subject to change.
Program Description
Freddie Version
Streamline rate/term refinance from Freddie to Freddie transactions to help:
* The new loan cannot have a longer term than the original mortgage.
Fannie Version
Streamline rate/term refinance from Fannie Mae to Fannie Mae transactions to help:
- Reduce mortgage payments
- Obtain a more stable mortgage product
Ineligible existing first mortgages
Freddie Version
- FHA, VA or Rural Housing (USDA Loans)
- Loans over $417,000
- Loans with current mortgage insurnace
- Non Prime Loans
- ALT-A Loan
- Loans with Mortgage Insurance
* The program currently is not available to for loans with MI but may be offered at a later date.
Fannie Version
FHA, VA or Rural Housing (USDA Loans)
Loans over $417,000
Loans with current mortgage insurance
Reverse mortgages
Second Mortgages
Other exclusions may apply
Max Loan to Value or CLTV
Freddie Version
- 105% LTV
- Unlimited TLTV/CLTV
Fannie Version
105% LTV
Unlimited TLTV/CLTV
Loan Amount
New loan Amount is limited to:
Freddie Version
- Payoff of the first mortgage balance and accrued interest.
- All closing costs, financing costs, prepaids and escrows cannot exceed $2500
- You may not receive cash back at closing.
Fannie Version
Payoff of the first mortgage balance and accrued interest.
All closing costs, financing costs, prepaids and escrows up to 105%
You may not receive cash back at closing.
Property Types
Freddie Version
- 1 to 4 unit
- Condos
- Cooperatives
- PUD's
Fannie Version
- 1 to 4 unit
- Condos
- Cooperatives
- PUD's
Occupancy
Freddie Version
- 1 to 4 unit primary and investment properties.
- 1 unit second homes
- Occupancy must not have changed from mortgage being financed
- Number of financed properties may be limited.
Fannie Version
- 1 to 4 unit primary and investment properties.
- 1 unit second homes
- Occupancy must not have changed from mortgage being financed
- Number of financed properties is NOT limited.
Credit Requirements
Freddie Version
- No Minimum score required except 620 minimum credit score if the new loan payment is 20% more than current P&I Payment.
- No bankruptcy or foreclosures allowed.
- No 30 day late payments in the last 12 months.
Fannie Version
No Minimum score required
No 60 day late payments in the last 12 months
Bankruptcy or foreclosure restrictions may apply.
Secondary Financing
Freddie Version
- Must be re-subordinated
- No replacement financing
- Secondary financing cannot have an increase in balance.
Fannie Version
Must be re-subordinated
No replacement financing
Mortgagors
Freddie Version
- New borrowers cannot be added
- borrowers on original loan may be removed in limited circumstances only.
Fannie Version
- New borrowers may be added as long as the original borrower(S) are on the loan.
- borrowers on original loan cannot be removed.
Mortgage Insurance
Freddie Version
- If the existing loan does not have MI then MI will not be required on the new loan.
Fannie Version
If the existing loan does not have MI then MI will not be required on the new loan.
To find out if your property is eligible for either program click the links below
Freddie Mac
https://ww3.freddiemac.com/corporate/
Fannie Mae
http://loanlookup.fanniemae.com/loanlookup/
If you live in Minnesota and think you may be eligible for either of these programs contact me and I will be happy to assist you.
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Uh wow! I am bookingmarking this. Thanks for taking the time to ouline it!