Fannie Mae’s new refinance initiative has three main components:
- Expand refi opportunities for Fannie Mae to Fannie Mae refis through additional underwriting flexibility and eligibility, DU Refi Plus
- More flexibility for a refi from the same lender.
- Allows LTV up to 105% of the current value, but the current value may not be less than the original appraised value.
- Provide a solution for borrowers with LTV’s above 80% who currently may not be able to refinance because of MI coverage requirements.
- If original loan did not require MI then the new refi will not. Loans over 80% LTV will require the original level of required MI. Loans that the MI was canceled will not require new MI. LPMI is permitted for DU Refi Plus
- Eligible mortgages are existing mortgage that were fully documented and received an approved eligible fully documented according to the original DU Underwriting findings report.
- Eligible property types are primary residence, second home, or investment property.
Limited cash out only, and existing purchase money subordinate financing must be re-subordinated and may not be satisfied with the proceeds of the Refi plus loan.
- Existing mortgage must be current.
- No minimum credit score and the borrower must meet Fannie’s guidelines with respect to the presence of a bankruptcy or foreclosure.
- Limited documentation required. Verbal verification of employment, or a VOE for the self employed from a disinterested third party.
- Debt ratios do not need to be calculated, but lender must determine that the borrower has a reasonable ability to repay based on current information.
For more information click the link below and contact the company who you make your mortgage payment to.