Effective 4/15/2009, Academy Mortgage (678-234-0545) will begin accepting loan application and locks on loans originated using Fannie Mae's DU Refi Plus program.
DU REFI PLUS CRITERIA
•· Rate and Term (no cash out) refinance of an existing Fannie Mae loan.
•· Owner Occupied transaction only
•· Mortgage Insurance will be waived if the existing mortgage was originated with an Loan to Value less than or equal to 80%. DU will issue the following message:
•o Mortgage Insurance is not required for the DU Refi Plus loan case file.
•· Maximum LTV of 95% (2nd loans no limit on combined CLTV)
•· No maximum CLTV on existing re-subordinated second liens
•· Minimum credit score of 620 for all borrowers
•· Maximum DTI ratio of 41% for FICO scores between 620-659
•· Maximum DTI ratio of 45% for FICO scores 660 and above
•· 2 months reserves on all loans
Additional Fannie Mae DU Refi Plus requirements
•· DU Refi Plus transaction must provide a benefit to the borrower in the form of either:
•o Reduced monthly mortgage principal and interest payment or
•o More stable loan product
•· Borrowers on the existing mortgage must be the same borrowers on the DU Refi Plus transaction
•· Lenders are prohibited from specifically targeting borrowers, whose mortgages are owned or securitized by FNMA, for a refinance
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Desktop Underwriter Findings Requirements
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An approve eligible is required. The AUS findings must state the following message to be eligible for the DU Refi Plus program:
"This loan case file was underwritten according to the DU Refi Plus expanded eligibility guidelines offered on certain limited cash-out refinance loan case file where the borrower's existing loan is identified by DU as a Fannie Mae loan."
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LTV/CLTV
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The maximum LTV is 95%. No maximum CLTV for existing subordinate financing that is being re-subordinated.
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Occupancy
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Owner Occupied only
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Eligible Transactions
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Rate and Term refinance only
Existing purchase money subordinate financing cannot be satisfied with the proceeds of the DU Refi Plus mortgage.
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FICO Scores
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Regardless of DU findings a minimum FICO Score required:
620 for all borrowers
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Mortgage Late
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No mortgage late payments in the last twelve months
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Ratios
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Regard less of DU findings, the follow ratio guidelines are required:
FICO Score 620 -659 Maximum DTI ratio cannot exceed 41%
FICO Score >660 Maximum DTI ratio cannot exceed 45%
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Reserves
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Regardless of DU findings, the minimum reserve guideline is required:
2 Months liquid assets
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Subordinate Financing
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New subordinate financing is not allowed with the DU Refi Plus.
Existing subordinate financing can be re-subordinated with no maximum CLTV requirements.
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Mortgage Insurance Details
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Original LTV of existing loan
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MI Coverage currently in effect on existing loan
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MI coverage required for a DU Refi Plus new loan
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</equal to 80% LTV
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NO
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NO 1
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>80%
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YES
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Not Eligible for financing
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Additional Documentation Requirements
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DU may require "streamline" income documentation with the findings. Such as one year W-2. Regardless of DU findings the following income documentation will be required:
Salaried Borrowers: Full income documentation in the form of VOE, Paystubs and W-2. Transcripts for the most recent year.
Self Employed Borrowers: One or two years tax returns with all schedules along with tax transcripts for the years of taxes supplied.
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Appraisal Requirements
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Regardless of DU findings the following appraisal guidelines are required:
A new full URAR
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Eligible Programs
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Fannie Mae 30 year fixed rate conforming
Fannie Mae 30 year fixed rate Agency High Balance (separate IHM program)
5/1, 7/1 and 10/1 Agency conforming ARM's
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Pricing
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Call Craig Bland 678-234-0545
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;)
;)
