Home Affordable Refinance
Home Affordable Refinance rules:
The program applies only to loans that are owned or guaranteed by Fannie Mae or Freddie Mac. Refinance with little or no equity. Do you qualify?
The property must be an owner-occupied detached house, condominium, duplex, triplex or four-unit residential property. (Fannie Mae’s and Freddie Mac’s rules may allow exceptions to this rule.)
The borrower must not have made a loan payment more than 30 days late in the last 12 months or missed a payment if the loan was originated fewer than 12 months ago. (If a borrower who was delinquent or have made a payment more than 30 days late during the prior 12 months may qualify for the Home loan modification San Diego program.)
The new mortgage lien cannot exceed 105 percent of the appraised value of the property.
If the borrower has a second loan, that loan isn’t counted toward the 105 percent limit. The second loan must remain subordinate to the new first mortgage.
The interest rate on the new mortgage will be the current listed market rate.
The borrower may be charged fees, points or other refinancing costs.
The new mortgage home loan cannot have a prepayment penalty or balloon payment tacked on to the end of the loan term.
The borrowers income will have to qualify to afford the new mortgage payments
The existing loan balances will not be reduced and may increase by adding on refinance and escrow fees.
If a borrowers has existing private mortgage insurance, or PMI, will be required to continue that insurance on the new loan.
There will be no PMI or private mortgage insurance on news loans.
A list of participating lenders can be found at the Home Affordable website or you can go to http://homeloanrefinanceonline.info
Documents required for the new home affordable refinance mortgage loan program are as follows.
1. Paycheck stubs, alimony, child support or other income-related documents.
2. Recent income tax return including w-2 statements for all borrowers.
3. Second and Third loan notes and payment coupons secured by the property.
4. Financial statements-Account numbers, balances and monthly minimum payments on credit cards, student loans, car loans, personal loans and other debts.
5. Mortgage coupon of existing loan
6. Copy of Hazard Insurance declaration page
Important reminder the Home Affordable Refinace program will terminate on June 10, 2010.