Fannie Mae & Freddie Mac developed a NEW refinance programs.  These program provides a streamlined refinance process for existing Fannie Mae owned loans & Freddie Mac owned loans previously underwritten under Fannie Mae or Freddie Mac guidelines.  This program is designed to assist borrowers that have good payment histories on their mortgages but have not been able to do refinances due to declined home values and will provide increased eligibility for conforming rate and term refinances of existing Fannie Mae owned loans** up to 200% LTV with $417,000 loan amount.

Among the other significant changes include accepting credit scores below the current 580 fico score requirement, as well as borrowers only having to submit only one current pay stub, rather than the conventional two paystubs.  The ultimate goal is to assist homeowners to avoid foreclosure & remain in their homes.  Combined with today's very low interest rates, borrowers can anticipate the benefits of lower principal & interest payment each month.  This also gives you the opportunity to refinance from your adjustable-rate mortgages (ARMs) to more stable fixed-rate mortgages.

Highlights of 200% Refinance Programs

  • Maximum LTV for transactions is 200% & there's no CLTV limit with re-subordinated existing subordinate financing.
  • All property types are eligible for refinancing, including condos, manufactured homes & PUD's. 
  • Primary residences & investment properties are eligible up to 4 units (4-plex).
  • Second homes - 1 unit only are eligible.
  • Borrowers may be added to the new loan, provided existing borrower(s) are retained.
  • Project review will not be performed on condominiums & PUDs (effective 5/2/2009).
  • For certain loans, appraiser waivers or exterior-only appraisals.
  • Full Documentation loans only.
  • 1 year federal tax returns is required for self-employed & commissioned borrowers.
  • 30 Yr Fixed loans or Arm's > than 5 years fixed.
  • Must have clean prior 12 months mortgage history (up to 1 late payment is acceptable).
  • MI not required on loans > 80% LTV if the existing mortgage did not already have MI.

Restrictions of Refinance Loans

  • No Cash-out.  May roll in some closing costs.
  • Existing 2nd mortgages must be subordinated & cannot be paid off in the refinance.
  • No interest only mortgages allowed.

Please call us at South County Mortgage to help you figure out if your home is eligible for the new programs offered by Fannie Mae & Freddie Mac.  We look forward to helping you refinance!

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