Freddie Mac has guaranteed and purchased a great many home mortgages, and a lot of those are in trouble, or staring trouble in the face. If you have a loan that was purchased by Freddie Mac, and refinancing would help you to lower your interest rate or get out of an ARM,Adjustable Rate Mortgage, there is a program to streamline the refinance process to help homeowners in your situation. The program, HASP, is the Homeowner Affordability and Stability Plan. While you may see ads that promise loans at 125% of value, it's highly unlikely that any lender will approach this process if the loan to value is greater than 105%. But, this is enough to help a great many people to get out from under an oppressive mortgage and lower their payments significantly. Here are some high points:
- With limitations, second homes and investment properties qualify.
- Normal Freddie Mac conforming loan limits apply in most cases.
- Lesser of 4% of loan balance or $5000 can be added to new loan to pay closing costs, prepaids and escrows.
- Maximum of $250 cash back to borrower is allowed, with overage applied to principal balance.
- Loan being refinanced must be a first lien owned by Freddie Mac.
- Loan seasoned at least 3 months, with no late payments last 12 months.
- Borrower must be the same as listed on the note to be refinanced, with some exceptions due to death or divorce.
- A minimum 620 FICO credit score is required.
There are other requirements and limitations, and here's a link to the full text of the document: Freddie Mac HASP Refinancing . Call us to help you to interpret the rules and see if there's a refinance loan for you.