If you have a home mortgage held by Fannie Mae, and need help with a refinance, there is good news for many. There are a lot of mortgages out there with high interest rates, values down, or ARM, Adjustable Rate Mortgage, interest rate resets looming in the near future. For those owned by Fannie Mae, a program has been introduced to streamline a process for refinancing that can pay off the problematic old loan and help the homeowner to keep their home with lower payments. It's not a slam-dunk for all borrowers, but it covers a great many. The first lien must be a conventional mortgage owned by Fannie Mae. And, it must have been delivered to Fannie Mae prior to March 1, 2009. Second home and investment property owners should look into it, as those type of loans are also eligible with certain limitations. The borrower must be the same person who is paying the current loan payments, but one borrower may be removed if the other can prove they've been paying the payments out of their own funds for the last 12 months. Here are some other highlighted points:
- If previous borrower has died, new borrower need not prove payment history.
- Condominiums are allowed with restrictions.
- A 620 FICO score is required.
- The existing mortgage must be current.
- Up to 105% of the home's value can be financed.
There are of course other requirements and limitations. You can read this copy of the 6 page FNMA document for details. But, to determine if you're eligible, give us a call, and we'll be happy to help.