Fannie Mae/ Freddie Mac “Making Home Affordable” program
The government has announced new lending guidelines through the GSEs, Fannie Mae and Freddie Mac. The program is titled, the “Making Home Affordable” program. This program allows people that currently hold mortgages backed by Fannie Mae or Freddie Mac to refinance up to 125% of their first mortgage lien.How do you find out if you qualify? Click on the Apply Now tab and enter your current information. In order for to be considered for the new program, your current first mortgage must be through Fannie Mae or Freddie Mac. One of our mortgage professionals will research your current mortgage loan to let you know if you will be able to qualify or not.
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Does this loan have mortgage insurance?If you currently have mortgage insurance then YES, you will still need to carry mortgage insurance. If you do not have mortgage insurance on your current first mortgage loan, then NO, you will not need to carry mortgage insurance.Do my payments have to be current on my present first mortgage?Yes, you must be current with all present and past payments. There are other options available such as FHA and loan modifications that allow qualification under non-traditional terms. Our mortgage professionals are trained to evaluate all situations, contact us today to find out what you qualify for. If you have any other questions on this new program, please contact us. All of our mortgage professionals are licensed and certified by the State of Minnesota and authorized to provide Fannie Mae, Freddie Mac and FHA products.
Features
- Maximum Loan-to-Value: 105%1
- No Maximum Combined Loan-to-Value; any 2nd mortgage amount can remain in place if lien holder agrees to subordinate
- No minimum credit score requirement
- Mortgage insurance not required if current 1st mortgage does not carry MI
Advantages
- Allow for a refinance even if subject property is valued less than the 1st mortgage lien.
- Appraisal may not be required
Disadvantages
- Only 1st mortgage can be refinanced. No other mortgage liens or debt can be paid off in transaction. All liens against property that are not the 1st mortgage lien must remain in their current lien position or be paid off outside of closing
- Current 1st mortgage lien must be held by Fannie Mae or Freddie Mac
More answers 1 -Maximum Loan-to-Value is determined by a variety of factors including but not limited to: loan type, credit worthiness, property type and occupancy status. The max loan-to-values listed are not necessarily available for every situation.Information deemed reliable but, not guaranteed.
