Ascent Home Loans

For many borrowers it has been a long and hard road over the past months to try to refinance their homes. Credit has been tight, mortgage companies are making it harder every day to qualify for a loan, and some borrower’s mortgages are more than their homes are worth.  Now there may be some relief for many borrowers.

As part of the Home Affordable Act, Fannie Mae has introduced the Fannie Mae Refi Plus program. The Refi Plus program is designed to help borrowers who are current on their monthly mortgage payments, but may benefit from refinancing into a mortgage with better terms and a lower payment.

Who can benefit from the Refi Plus Program? Borrowers trying to refinance out of an adjustable rate mortgage, or a borrower looking to lower their monthly payment. Another important benefit is for borrowers whose LTV may have risen to 125%. For instance, let’s say your mortgage is $375,000, but your home is worth $300,000. You would be eligible to qualify for this loan because your LTV would be 125%.

What are some of the major highlights of this loan program?

• Max 125% LTV and no max for CLTV
• Properties eligible are Owner Occupied, 2nd Homes and Non-owner Occupied (Investor)
• No mortgage insurance if existing loan does not have mortgage insurance,regardless of new LTV
• 2nd home must be 1-unit
• For investment property, no limit on the number of mortgages to the same owner.

There are many restrictions to this program so call your loan officer to see if your particular situation will qualify.  However, just a few of the main restrictions listed are; if there is subordinate financing it must be re- subordinated. No new subordinate financing is allowed. Loan limits are set to the maximum conforming loan limits for 1-4 unit properties. Most importantly, your existing loan must be a Fannie Mae loan.

Don’t know if your loan is a Fannie Mae loan? You can either call the company that is currently servicing your loan payments, or you can call Scott Dovala at 707-494-8532 or toll free at 877-392-0674 and I can look that up for you.

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