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Get the Facts on the Home Affordable Refinancing Program

Home Affordable Refinancing Program

I think a lot of us out there may be a little confused about all the information  floating around regarding the Home Affordable Refinancing Program, so I would like  to pass on the general guidelines which were released on March 4th, 2009. 

The Federal agencies, Fannie Mae and Freddie Mac are now in the process of developing procedures to implement the new programs. The refinancing program is aimed at homeowners who may not have sufficient equity in their home to qualify for traditional financing. Lenders are standing by for Fannie Mae and Freddie Mac to provide the necessary instructions, lender guidelines and contracts for purchasing new loans under that program.

Below are the general guidelines as they have been published, these are just some of the aspects of the new programs.

Home Affordable Refinancing Program.

• The home must be your primary residence only.
• The existing home loan must be a Fannie Mae or Freddie Mac – owned loan
• Homeowner must be current on  payments (not more than 30 days late)
• Must be able to document sufficient income to qualify
• Will require a “hardship letter” documenting a change in circumstances or a rise in payments that will lead to foreseeable default
• Maximum loan amount is $729,500
• Maximum loan-to value is 105% (for example, if your home is worth $100,000 today, the maximum loan amount is $105,000)
• New or additional mortgage insurance (MI OR PMI OR MIP) will not be required
• Program ends June 2010

To determine if your present loan is owned by Fannie Mae or Freddie Mac, click here

You can also contact Fannie Mae at (800) 7Fannie   8a.m. – 8.00 p.m. or Freddie Mac at (800) Freddie  8 a.m. – 8p.m.

Content courtesy of Countrywide Mortage, Inc