| - Making Home Affordable -
The new Making Home Affordable refinancing program
allows the opportunity for borrowers to refinance their current mortgage for
their principal residence, second home and/or investment property for up to 125%
of the current value.
If your mortgage loan is owned by Fannie Mae or Freddie Mac, you may
be eligible for the Making Home Affordable refinance to take
advantage of current low interest rates.
Guidelines
Loan-to Value:
- First mortgage up to 125%
- No maximum combined loan-to-value with existing subordinate
financing
Minimum Credit Score:
- Primary residence is 620.
- Second home is 680.
- Investment property is 720.
Mortgage History:
- Must have a 12 month pay history on the subject property with no
lates.
Income and Asset Documentation:
- Standard documentation required.
- Stated Income/Asset is not allowed
Loan Limits:
- Minimum Loan amount: $75,000
- Minimum Loan Amount for investment properties $125,000
Maximum Loan Amounts
- Number of Units Maximum Loan Amount
1 unit $417,000
2 unit $533,850
3 unit $645,300
4 unit $801,950
Use of Proceeds
- Proceeds from the new refinance may be used to:
- Payoff the existing current loan balance
- All closing costs, prepaid items and points
- And cash back to the borrower in an amount that is not more than
the lesser of 2% of the new mortgage loan balance or $2000.00
Proceeds for the new loan may not be used to payoff:
- Existing escrow deficiencies
- Existing delinquent taxes.
- Existing subordinate financing (second mortgages)
Subordinate Financing (second mortgages)
- Existing subordinate lien mortgage must be subordinated to the new
loan
- The new refinance mortgage may not have new secondary financing
- Proceeds from the new loan may not be used to pay off subordinate
financing
Mortgage Insurance:
- If the current loan has mortgage insurance then mortgage insurance
must be again placed on the new loan. And you must contact your existing loan
servicer to refinance under this program.
- If there was no mortgage insurance on the original loan then NO
mortgage insurance will be required on the new loan. Even for
loan-to-values up to 125%.
Eligible Properties
- Attached SFR
- Detached SFRs
- Attached PUDs
- Detached PUDs
- Condominiums (up to 90% loan-to-value)
- 2-4 Units
Ineligible Properties
- Working Farms
- Blanket Loans
- Co-ops
- Condotels
- Unimproved Land
- Newly Constructed (Properties < 1 year old)
- Mobile Homes (single-wide)
- Manufactured Housing
- Condo > 90% LTV
Ineligible Existing Mortgages:
- mortgages
- Second mortgages
- FHA and VA mortgages
Appraisal:
- Normally a full appraisal will be required. Under certain
circumstances an appraisal may not be needed.
Occupancy:
- Occupancy status must be the same as on the existing mortgage.
Currently or Recently Listed For Sale
- Properties must not have been listed for sale within the last 6
months.
Properties Owned:
- The usual restriction of the number of properties owned is waived.
If you find that your existing mortgage does not
qualify for the Making Home Affordable program you may still wish to
contact us to see if we can offer a loan program that may be
helpful. Click here for your
mortgage refinance inquiry.
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