Posted on: 15th Apr, 2009 06:17 pm
features of the fnma du refi plus program
1. maximum ltv as accepted by du, up to 95%.
2. maximum cltv as accepted by du all existing subordinate financing must be re-subordinated. new subordinate financing is not permitted.
3. minimum credit score requirement is 620 on standard conforming limits; 680 on fnma high balance. a credit report must still be submitted. minimum 48 months since a bankruptcy; 84 months since either a foreclosure or multiple bankruptcy
4. du approve/eligible recommendations (without ea findings) will be accepted
5. primary, second home and investment properties are eligible.
6. eligible properties are 1-4 units, fnma eligible condos, and puds (2-4s are not eligible on fnma high balance)
7. qualifying ratios are determined by du.
8. the borrower(s) on the existing loan must be identical to the borrower(s) on the new loan. a new borrower may be added to the new loan, as long as the existing borrower(s) is retained.
9. mortgage insurance is not required if the existing loan does not require mi. loans currently with mi are not eligible for this product through hsoa.
10. loan amount may exceed existing loan unpaid principal balance only for payment of closing costs, prepaid items and lender fees.
11. borrower may receive up to the lesser of 2% or $2,000 at closing.
12. the new refinance loan must result in a tangible net benefit to the borrower in either a) a reduction in the interest rate; b) a reduction in the amortization term; c) the replacement of an arm or a balloon/ reset mortgage with a fixed-rate loan or d) lower monthly payment that recoups costs within 60 months.
13. documentation requirements are per du findings
14. property inspection waivers (piw) accepted where allowed by du, provided:
15. borrower certifies the home has not been listed for sale in the past 6 months and is not currently for sale
16. property county was not declared to be in a fema declared disaster county since last first lien lending transaction
16. last first lien lending transaction was not a purchase as an reo sale.
if the existing loan has mortgage insurance, the only lender able to process that loan as a du refi plus loan is the current lender servicing that loan. direct the borrower or submit the loan to them if a du refi plus transaction is the best solution for your consumer.
1. maximum ltv as accepted by du, up to 95%.
2. maximum cltv as accepted by du all existing subordinate financing must be re-subordinated. new subordinate financing is not permitted.
3. minimum credit score requirement is 620 on standard conforming limits; 680 on fnma high balance. a credit report must still be submitted. minimum 48 months since a bankruptcy; 84 months since either a foreclosure or multiple bankruptcy
4. du approve/eligible recommendations (without ea findings) will be accepted
5. primary, second home and investment properties are eligible.
6. eligible properties are 1-4 units, fnma eligible condos, and puds (2-4s are not eligible on fnma high balance)
7. qualifying ratios are determined by du.
8. the borrower(s) on the existing loan must be identical to the borrower(s) on the new loan. a new borrower may be added to the new loan, as long as the existing borrower(s) is retained.
9. mortgage insurance is not required if the existing loan does not require mi. loans currently with mi are not eligible for this product through hsoa.
10. loan amount may exceed existing loan unpaid principal balance only for payment of closing costs, prepaid items and lender fees.
11. borrower may receive up to the lesser of 2% or $2,000 at closing.
12. the new refinance loan must result in a tangible net benefit to the borrower in either a) a reduction in the interest rate; b) a reduction in the amortization term; c) the replacement of an arm or a balloon/ reset mortgage with a fixed-rate loan or d) lower monthly payment that recoups costs within 60 months.
13. documentation requirements are per du findings
14. property inspection waivers (piw) accepted where allowed by du, provided:
15. borrower certifies the home has not been listed for sale in the past 6 months and is not currently for sale
16. property county was not declared to be in a fema declared disaster county since last first lien lending transaction
16. last first lien lending transaction was not a purchase as an reo sale.
if the existing loan has mortgage insurance, the only lender able to process that loan as a du refi plus loan is the current lender servicing that loan. direct the borrower or submit the loan to them if a du refi plus transaction is the best solution for your consumer.
Karla
The initial details that I received on the program indicated that the max LTV is 105% and the credit score requirements would be lower than 620.
Something else to mention is the borrowers' current loan must be with FNMA to qualify.
The initial details that I received on the program indicated that the max LTV is 105% and the credit score requirements would be lower than 620.
Something else to mention is the borrowers' current loan must be with FNMA to qualify.
Eric,
Thank you for the additional info and the websites!
Thank you for the additional info and the websites!
Some additional info...
Many banks are electing to impose additional restrictions on this program. For example, although FNMA allows for up to 105% loan to value, I know of a couple of banks that are not permitting anything greater than 80% loan to value. this defeats the general purpose of the program.
Many banks are electing to impose additional restrictions on this program. For example, although FNMA allows for up to 105% loan to value, I know of a couple of banks that are not permitting anything greater than 80% loan to value. this defeats the general purpose of the program.