Streamline Refinances for Conventional Mortgages

The US Government has stepped up to the plate, bringing help to homeowners who have seen their property values fall.

For homeowners who are having trouble refinancing due to plummeting property values, a new limited-time government program has become available to Mortgage Now, that promises to remove many of the barriers to mortgage refinancing.

Fannie Mae(FNMA) and Freddie Mac(FHLMC) Refinance mortgage programs have been expanded to allow for borrowers to refinance their existing loans, up to 105% of the value of their home, with no mortgage insurance (PMI.) These programs just became available at the end of April, 2009, and are only around for a limited time, and very few lenders have them.

While there are a lot of guidelines, the basics of the program include:

• The investor on the borrower’s current mortgage must be FNMA or FHLMC. Note that the loan will be serviced by a lender, such as Chase, Wells Fargo, etc.
• The borrower can not have PMI currently, and it will not be imposed on the new mortgage, up to 105% of the value of the property.
• Second mortgages can be subordinated, to an unlimited LTV. Approval will require the second mortgage lien holder to re-subordinate the loan.
• The borrower’s payment must be going down, or the borrower must be changing to a more stable product (ARM or Balloon to a Fixed Rate)
• While no minimum credit score is required, 620 will likely be the lowest approvable.
• Fixed and Adjustable Rate mortgages available.
• Rate and Term Refinances only – No Cash Out.
• Primary residences, Second homes and Investment properties are all available.
• In some cases, no income or asset documentation is necessary.
• Homeowners must be current on their existing mortgage.
• Closing costs can be rolled in – with some restrictions.

There are a lot of restrictions and fine points of detail on these programs. Not everyone will qualify. Please contact me with your specific mortgage details, and we can find out if there is a benefit to you.