Making Home Affordable Refinance Program

The Making Home Affordable program was announced by President Obama and the U.S. Department of the Treasury last month and has finally hit lender rate sheets. This new initiative is designed to provide refinance opportunities to borrowers with mortgages held or guaranteed by Fannie Mae. The program, called DU Refi Plus, is for borrowers who have demonstrated an acceptable payment history on their mortgage but due to a decline in home prices, have been unable to refinance to obtain a lower payment or move to a more stable product.

Program Highlights:

• Borrower must have a current Fannie Mae mortgage
• New loan cannot include the pay off of an existing
second mortgage or other debts; if there is a second
mortgage it must be subordinated by the current lender
• Closing costs and prepaid items can be rolled into the
new loan amount
• Cash back to the borrower cannot exceed $2,000
• New second mortgage financing not allowed
• No appraisal needed in some cases
• Reduced income documentation in some cases
• If there is no mortgage insurance on the current loan,
then no mortgage insurance is required on the new
loan if the new loan to value ratio is not greater than
105%
• No minimum credit score required
• No 60-day late mortgage payments allowed in the past 12
months
• Primary residence, second home, or investment
properties allowed; this includes 1-4 unit family homes,
condominiums and PUDs

~ Courtesy of Wendy Charles, LoanCentral LLC,
425.468.9321, WendyC@loancentral.com