Fannie Mae Refi Plus
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. But 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 105%. For instance, let’s say your mortgage is $315,000, but your home is worth $300,000. You would be eligible to qualify for this loan because you LTV would be 105%. Other benefits are if your original mortgage did not have mortgage insurance, no matter what your LTV is up to 105% you still will not pay mortgage insurance. For those currently paying mortgage insurance, your mortgage insurance payments will not increase even if your loan amount does. Lastly the following properties are eligible: Primary, Second Homes and Investment properties.
There are many restrictions to this program so call to see if your particular situation will qualify. However. just a few of the restrict are if there is subordinate financing, it must be re subordinated. No new subordinate financing is allowed. Second homes must be 1-unit. Loan limits are set a 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? Call today at 707-494-8532 or toll free 877-392-0674 or email me today by clicking Scott Dovala Branch Manager and I can look that up for you, or you can call your servicer to find out.