Rates have been low the past 8 months.  However, many homeowners were not able to refinance because their credit had fallen behind and/or they lost equity in their home and could not refinance.

Congress and President Obama passed the stimulus package earlier this year to try and help 2,000,000 homeowners refinance to current market rates in the spring of last year.  Lenders added the program in May, 2009 and have added enhancements to help more people qualify.  This programs is scheduled to expire June 10, 2010.

If your loan is owned by Freddie Mac, you must refinance with your current lender.  It is a streamline refinance program where the borrower does not have the equity to refinance, may have credit issues, and/or need potential relief from standard mortgage insurance.

Under current guidelines, lenders can refinance up to 105% of the current market value of your home and an appraisal may not be required. 

Your loan must be owned by Freddie Mac.  There are two easy ways to verify if Freddie Mac owns your mortgage...

1. Visit their website at https://ww3.freddiemac.com/corporate/
2. Contact mortgage company

Here are some of the major highlights as of 7/22/09 and may differ per lender:

• No mimimum credit score, so deliquent credit is permitted.
• No mortgage lates of 30 days or greater in the last 12 months is permitted. 
• Primary, second home, and investment properties.
• All Property types permitted except manufactured homes.
• Closing costs, pre-paids, and escrows up to $2,500 may be financed in with the new loan.
• There are no restriction on financing properties for sale.
• Present mortgage can not have mortgage insurance (PMI) or lender paid mortgage insurance (LPMI).
• Appraisal may not be required.
• No cash out refinances permitted (up to $250 allowed)
• Maximum Loan Amount will depend on your county.  Click here to see the limit for your county https://entp.hud.gov/idapp/html/hicostlook.cfm

There are currently plans to increase the LTV limits to 125% of the market value and to permit the refinance of loans that currently have (PMI) private mortgage insurance or (LPMI) lender paid insurance.

If you have any questions or would like to see if you qualify for a HARP streamline refinance, please feel free to contact me.

Bob Lowery

Office: 410-248-1762

Cell: 443-653-1720

bob.lowery@prosperitymortgage.com

 Feel Free to visit    www.marylandhomeloansonline.com   to get pre-approved on line.