New Temporary for 2009
Fannie Mae Announcement
Effective 9/19/09 125% Loan-To Values available
125% LTV
NEW TEMPORARY FOR 2009 FANNIE MAE
Refinance Program
w/ NO Mortgage Insurance!!
Loan being refinanced must be currently a
Fannie Mae Loan
Call now for more Info!
A critical part of Fannie Mae's role in the Making Home AffordableSM Program is Home Affordable Refinance, available for refinances of existing Fannie Mae loans only. The goal of the refinance effort, as announced by the President, is "to provide access to low-cost refinancing for responsible homeowners suffering from falling home prices." The expectation is that refinancing a Fannie Mae loan will put responsible borrowers in a better position by reducing their monthly principal and interest payments or moving them from a more risky loan structure (such as interest-only or short-term ARM) to a more stable product. Our solutions provide mortgage refinances for current LTVs up to 125 percent, and mortgage insurance flexibilities.
Fannie Mae provides two Refi Plus™ options to provide Fannie Mae to Fannie Mae refinance solutions to eligible borrowers:
1. Refi Plus for manual underwriting
Refi Plus simplifies the process of refinancing loans that are already in a lender's servicing portfolio. This product supports a 125 percent maximum LTV and mortgage insurance flexibilities for LTVs over 80 percent.
2. DU Refi Plus™ for loans underwritten through Desktop Underwriter® (DU®)
DU Refi Plus provides increased efficiencies for the origination and underwriting of Fannie Mae to Fannie Mae limited cash-out refinance transactions in DU up to 125 percent LTV (effective with the DU Version 7.1 September Update, weekend of 9/19/09). Eligible loans identified in DU receive increased underwriting flexibilities, including expanded eligibility criteria and DU minimum documentation requirements.
The Fannie Mae Loan Lookup
Click above to quickly determine if Fannie Mae owns their loan by providing a street address, unit, city, state, and ZIP code.
LTV Matrix
- 1-4 unit Primary Residence, 1 unit Second Home, and 1-4 unit Investment Property transactions are allowed up to 105% LTV.
- Credit scores and ratios are determined by DU
Appraisal
- Appraisal requirements will be determined by DU
- Property Fieldwork Waivers may be allowed per DU findings
Condos
- Condo project approvals are not required
Loan Amount - Conforming Generic and Conforming Plus loan amounts are allowed
- The new Temporary 2009 loan limits are available for this product only. See the Loan Amount section of the Loan Product Description for details.
- Loan amount may include:
- Payoff of the unpaid principal balance of the existing first lien
- Payment of closing costs, prepaids and discount points
- Cash back to borrower not to exceed 2% of the new loan balance or $2,000
Mortgage Insurance
- Refinance of existing loans with Mortgage Insurance is not allowed at this time
Ratios/Qualifying Rate
- Ratios are determined by DU
- Loans receiving Ineligible DU findings due to excessive expense (DTI) ratio are not allowed
Secondary Financing
- New secondary financing is not allowed
- Existing second liens must be re-subordinated
o CLTV/(H)CLTV restrictions do not apply
Underwriting/DU
- Approve/Eligible or Approve/Ineligible required
- Expanded Approvals are not allowed
- The following Ineligible findings are allowed until a subsequent DU update scheduled for May 2, 2009:
- LTV/CLTV or (H)CLTV exceeds 80%
- Minimum representative credit score is not met
- Ineligible findings for loan amount are allowed until DU is updated. Loan amount must meet current published limits.
- Documentation requirements will be determined by DU with a minimum of:
- Salaried: One (1) paystub and a Verbal VOE
- Commissioned/Self-Employed: Most recent Federal Tax Return
- Payment history for any mortgage debt must be 0 x 60 for 12 months regardless of DU approval