Mortgage Topics

Effective immediately, Lenders have started accepting loan applications for qualified borrowers who were above the 80% loan-to-value threshold normally used for refinancing home loans. This is part of the Home Affordable Refinance program announced by the goverment on March 4, 2009 (see our March 19th blog post).

We outline the key highlights of this great refinance opportunity:

• Loan-to-Value of up to 105% of the current value of the property.
• Only those mortgages currently held by Fannie Mae or Freddie Mac will qualify for the refinance. To find out if your loan is guaranteed by either government sponsored entity, visit the following sites:
• Fannie Mae: www.fanniemae.com/homeaffordable 
• Freddie Mac: https://ww3.freddiemac.com/corporate/
• Loan amounts cannot exceed $417,000. Higher loan limits are planned for later. Stay tuned.
• Property types covered under the program includes condos, PUDS, primary homes, 2^nd homes & investment properties.
• If a borrower currently does not have mortgage insurance (MI) they will not have MI with the new loan.
• This phase of the roll out will exclude borrowers that currently have MI. There will be a second phase roll out for these loans.

Action Steps for Homeowners Looking to Refinance But Unable to do so Due to Previous Loan-to-Value Restrictions:

• Click on the above noted websites to see if your loan is guaranteed by Fannie Mae or Freddie Mac
• If the answer is "yes", call your mortgage advisor and ensure that your credit score, income, asset and employment information is in line with qualifying criteria.