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THE FLORIDA HOME AFFORDABLE REFINANCE PROGRAM OF 2009

By Five Stars Mortgage

Mortgage and Lending

March 05, 2009 01:33 AM

This program officially goes into effect on April 4th 2009. It is meant to assist homeowners that have been making their mortgage payments on time but have been unable to refinance to take advantage of lower rates due to decreasing housing values.

It is not geared for people that are currently or recently have been behind on their mortgage payments. For those people there is a new Government backed loan modification program in effect today that can help you lower your payments and save your home. We will discuss the federally backed modification program in another article in detail shortly.

If you think you may qualify and want to get information about the new Federal Florida Affordable Home Refinance Program please call us today at 800-871-2636 or Apply Online NOW!

Required Benefit To Borrower	A reduced priciple and interest payment; or A more stable mortgage product (For example moving from an ARM to a fixed rate mortgage)
Maximum LTV (Loan ToValue)	105% LTV
Maximum CLTV (Combined Loan To Value; such as 1st & 2nd Mortgages)	No limit. The 2nd mortgage must remain in place and be willing to subordinate to the new 1st mortgage made through the refinance.
MI (Mortgage Insurnace) Guidelines	If original Loan was 80% LTV or less = No MI required If original loan was 81% LTV or more but MI has since been cancelled = No MI requried If original loan was 81% LTV or more and still has MI = New loan will have the exact same coverage rate as the existing loan has.
Borrower Eligibility	• The borrower(s) on the existing mortgage must be identical to the borrower(s) on the new mortgage. Borrower(s) may be added to the new loan, provided the existing borrower(s) is retained
Eligible Mortgage Loans	Any loan owned by Fannie Mae, Freddie Mac
Ineligible Mortgage Loans	• Mortgage loans that are subject to any credit enhancement (e.g., full or partial recourse) other than borrower-paid mortgage insurance. • Mortgage loans that are currently subject to any outstanding repurchase request from Fannie Mae •Reverse mortgage loans • Second mortgage loans Government mortgage loans
Occupancy	Occupancy of the property securing a Refi Plus loan may be a primary residence, second home, or investment property.
Credit History	No minimum credit score required. •The borrower must meet the requirements for normal underwritten loans, including the mortgage delinquency, bankruptcy, and foreclosure policies.
Seasoning Requirements	None
Multiple Mortgages To the Same Borrower	No Limit
Property Valuation (Appriasal)	May not be required. Can be waived by lender on case by case basis.
Documentation Required	A new executed Uniform Residential Loan Application from the borrower with all information completed including borrower income, employment, and assets. A new merged credit report with the borrower's "representative" credit score. New credit score for pricing purposes. Determination of the borrower's credit worthiness is based on the payment history of the existing mortgage as stated below: • - Salary/Bonus/Overtime: one current paystub and a verbal VOE of employment. • - Commission/Self-Employment: one year's federal income tax return.