The Making Home Affordable program announced by President Obama and the U.S. Department of the Treasury on 03.04.09 includes a new initiative, Home Affordable Refinance, to provide refinance opportunities to borrowers with mortgages held or guaranteed by Fannie Mae. This initiative is for borrowers who have demonstrated an acceptable payment history on their mortgage but due to a decline in home prices, have been unable to refinance to obtain a lower payment or move to a more stable product. Use this loan lookup tool to determine if your loan is held by Fannie Mae.
Many consumers, lenders and mortgage professionals like myself have been waiting for the Refi Plus Program sponsored by FNMA to go into effect. We have been told it will on April 5th, 2009. Below are bullet points that will summarize the benefits to home owners with mortgage loans:
•· No Minimum Credit Score Required.
•· New Lender Does Not Need to Be the Current Lender.
•· Reduced Income Documentation Allowed on All Loan Applications.
•· The automated system most lenders use (DU) will approve borrowers on this program. This will help increase the number of approved clients requesting Refi Plus.
•· If existing loan does not have mortgage insurance (MI), the new loan will not have MI regardless of the Loan to Value.
•· The New Loan must be a 5 year + fixed term loan (5, 7, 10 15, 30 year type loan).
•· Loan to Value ok up to 105% with an unlimited CLTV subject to the 2nd lender allowing the subordination.
•· 3 to 4 unit only ok to 80% but after May 3rd, 2009, ok to 105% Loan to Value.
This program is now available through Northstone Mortgage
by Brian Leavitt, a Licensed Real Estate Broker and Licensed Mortgage Broker representing Northstone Real Estate Inc, and Northstone Mortgage.
Brian serves clients within the Northwest Multiple Listing Service.
You can contact Brian directly by phone at 800-806-3145 or by email at brian@northstone.net. Click here to view his client newsletter.
Brian is licensed with the Washington State Department of Licensing and the Washington State Department of Financial Institutions License number 510-MB-19802 and is a member of the Seattle King County Association of Realtors and Northwest Multiple Listing Service.
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