On March 4, 2009 President Obama launched his Housing Recovery Plan. Part of this plan was the launch of a new government mortgage website dedicated to mortgage refinancing. Specifically, this website was launched to give homeowners a location where they can help themselves find out if their home mortgage loan and themselves are eligible for the new refinancing programs being launched by Fannie Mae and Freddie Mac.
On April 4, 2009, Fannie Mae will be launching new mortgage refinance guidelines that allow a homeowner who is underwater with their mortgage and home value to refinance without an appraisal. Being underwater is defined as you owe more on your mortgage than your home is worth, or you owe more on your mortgage than guidelines allow for a refinance.
What Are The Eligibility Requirements Of The Home Affordable Refinance?
Are you faced with a home value that has gone down to the point that your mortgage company or favorite loan officer has been the bearer of bad news about you not being able to refinance? If so, review the following eligibility requirements to determine if you are able to now to do a mortgage refinance.
- Do you own a 1 to 4 unit home in which you live?
- Is your mortgage a conventional mortgage guaranteed by Fannie Mae Or Freddie Mac?
- Have your loan been bought by Fannie Mae or Freddie Mac recently?
- What Is Your Mortgage History over the past 12 months?
- Do you know that 2 of your 3 credit scores are over 580?
- Do you owe more on your home than your home is worth or that would allow to qualify for a mortgage?
You can check your home loan eligibility for this program at: Making Your Home Affordable.
What Will I Need To Document To Qualify For The Home Affordable Refinance?
You will need to gather several documents to get yourself ready to apply for a Home Affordable Refinance. These items are simimar to those items required when you first got your mortgage. Although the required documents for this loan program are reduced from what is normally required for a mortgage.
The first major requirement that you will not have to worry about is getting an appraisal. The Home Affordable Refinance program is designed around helping homeowners who are upside down on their mortgages and home values to refinance without an appraisal. This program is similar the the FHA Streamline Refinance.
Personal Documents Required For A Home Affordable Refinance
- Your monthly mortgage statement
- Your last 30 days worth of pay stubs to show year to date income totals
- Most recent year's W-2's and tax return for all borrowers on your mortgage
- Your second mortgage statement if you have one
- Account statements for your consumer debt like credit cards, student loans, auto loans and child support/alimony
How Do I Start A Home Affordable Refinance?
There are several ways you can start this process. You can all your current mortgage company and ask them how you can apply for the Home Affordable Refinance program offered by Fannie Mae. Beware of only calling your mortgage company. They are going to give you a retail interest rate quote for your mortgage. With this in mind you will want to make some other phone calls to other mortgage companies, your favorite loan officer, your local bank, or whomever you want to check with. It is a good idea to get quotes from 3 different lenders.
If you are interested in speaking to a trusted loan officer in our network of mortgage lenders and loan officers, please complete the form below. Note: your information will be given to only one person in our network.
