Beginning with DU update 7.1, which is slated for September 19th, Fannie Mae will start letting mortgage brokers/bankers process Refi Plus loans to 125%. With home values still declining this is great news. We have done a handful of Refi Plus loans to 105% and so far it has been quite successful.
From Fannie Mae:
"To help make the Refi Plus benefits available to even more borrowers who have demonstrated an acceptable payment history on their existing Fannie Mae mortgage loan, but due to a decline in property values have been unable to refinance to obtain a lower payment or move to a more stable product, in July we increased the maximum allowable loan-to-value ratio to 125% for mortgage loans that qualify for the Refi Plus (Lenders Only) and DU Refi Plus (available with the DU Version 7.1 September Update)".
To check and see if your current mortgage is a Fannie Mae loan check out Fannie Mae's Loan Lookup http://loanlookup.fanniemae.com/
The program allows up to 125% LTV (effective September 19, 2009) and there is no maximum CLTV. All existing subordinate financing (2nd Mortgages) must subordinate to the new loan. Please contact your existing 2nd Mortgage Lender and request a subordination package to find out if they will comply.
You can retain your original PMI rate (This is great because the PMI rates increased). If you did not have mortgage insurance with your initial loan (80% or less LTV), you will not be required to carry mortgage insurance on the new loan.
This gives you an idea of the program and how it works. For more information or questions feel free to call or email me.
Brian Collins
Toll Free: 877-240-5810 x106
brian.collins@
http://www.MadisonMortgageguys.com
Visit my blog at http://www.madisonmortgageguys.com/
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