Actual use of the Making Home Affordable Program

By
Mortgage and Lending with Guild Mortgage Co - Oak Harbor WA

So, what do we do when attempting to refinance a property and all of a sudden the value of the property comes in significantly lower than we expected???? Case in point, I am doing a rate and term refinance for a previous customer that purchased their home two years ago (during the height of real estate values for about $400,000. To accomplish an 80% refinance, I only need it to come in at $325,000 but the actual value comes in at $315,000, a huge drop in value and a loan to value of over 82%. So, what do I do? I go to a Fannie Mae DU Plus. This is all part of the Making Homes Affordable Program through Fannie Mae and Freddie Mac.

This program allows me to finance a rate and term for my clients at greater than 80% loan to value with no mortgage insurance. And, because they have excellent credit scores, there is no adjustment to the rate. A definite win-win situation. They get a lower rate with no mortgage insurance and I get to keep them happy.

Now, before everyone jumps up and says, “That is for me!” there are a few conditions. First of all, it has to be a Fannie Mae owned loan. You can find out if yours is here:

http://loanlookup.fanniemae.com/loanlookup/. Next, if there is currently mortgage insurance on your loan, it is probable that only the current servicer will be able to do the refinance. I know for a fact, that I can’t.

But, what if it is Freddie Mac owned? Basically, those loans have to go back to the current servicer. Now, if you have a Freddie Mac loan that is serviced by Wells Fargo, then I can help you with it, but it will be originated through Wells Fargo. Personally, I think I will get you a better deal if you go though me rather that direct to Wells Fargo, but that is my opinion, check it out for yourself.There is a definite possibility that we can also work with other servicing companies on Freddie Mac loans, but will have to check on each one individually. To find out if your loan is owed by Freddie Mac, check here: www.freddiemac.com/mymortgage.

The product is also available for investment property, which means you can get a lower rate on that rental also. You do need to be current on the mortgage and if you have a second, they will need to subordinate to get this product. So, after finding out if you have either a Fannie Mae or Freddie Mac loan, give me a call and let’s see what we can do to put you into better financial position. Every loan application is different. We are not in a cookie cutter business, let me tailor make your new loan.

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. C Tann-Starr 04/21/2009 09:22 PM
Topic:
Mortgage / Finance
Location:
Oregon
Groups:
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Consumer Mortgage Tips
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Tags:
home value
lower rate
mortgag
high loan to value
making home affordable program
fannie mae du plus
freddie mac relief finance mortgage

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Rainmaker
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Angelia Garcia
Pure Realtors - Dallas, TX

Finally, good news to help those in need.

Read my blog that asks for a loan officer to answer.  I still have no response from anyone.

Apr 21, 2009 10:06 AM #1
Rainer
170,895
Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Thanks Angelia, it is nice to have good news to impart. I did your blog answer too. LOL

Apr 21, 2009 10:28 AM #2
Ambassador
583,785
C Tann-Starr
Tann Starr & Associates, Inc. - Palm Bay, FL

Awesome post! Thank you for making it available for a re-blog. My readers will love this! :-)

Apr 21, 2009 09:23 PM #3
Rainer
170,895
Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Carolyn, you are always welcome to my posts, whether there is a reblog or not. Thanks for the great words.

Apr 22, 2009 04:35 PM #4
Rainer
22,773
Bobby Stevens
Windermere Real Estate/Lane County - Eugene, OR
Realtor, Eugene, Oregon

Nice to know there are options despite the devaluation!

Tell me about that new highlighter you have - does that create keywords or is it just for visual effect?

Apr 23, 2009 04:02 AM #5
Rainer
170,895
Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Well Bobby, I wrote it in word and then imported it to another program that put it into HMTL and then imported the HMTL to A/R. Overall, it worked and I liked it. LOL

Apr 30, 2009 05:00 PM #6
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Fred Chamberlin

Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant
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