All About The Obama Refinance Program

The buzz is is everywhere… people who have loans owned by Fannie Mae or Freddie Mac will be able to refinance with no loan-to-value restrictions.

This program is slated to take effect on November 15. The actual program is called (HARP) Home Affordable Refinance Program and it is designed to help people who have conforming loans refinance for monthly payment savings even if they are upside down on their mortgage. Presently, homeowners can refinance up to 125% loan to value on the Fannie Mae Refi DU Plus Program and up to 105% loan to value on the Freddie Mac Open Access Program.

So how do you qualify for the Obama refinance program?

First of all your loan must be owned by Fannie Mae or Freddie Mac. You can look up your loan here http://www.fanniemae.com/loanlookup/ and https://ww3.freddiemac.com/corporate/. Additionally, the loan must have been sold no later than June 1, 2009.

Here are some other tips on the Obama Refinance Program:

  • You can have a first and a second mortgage in order to do this and your first lien must be a conforming loan for the county in which your home is located. Find out conforming loan limits right here.
  • No mortgage delinquencies
  • If your mortgage loan is not owned by Fannie Mae or Freddie Mac you should still consider refinancing to today’s low rates and you can even get a complementary mortgage rate quote for that.
  • This program is not designed for foreclosure prevention, but rather to help people refinance their underwater mortgages.
  • There is no loan-to-value restriction, yes let me say that again, your loan to value LTV does not matter.
  • Mortgage lenders will do an automated valuation model of your home in lieu of an appraisal.
  • If you have mortgage insurance on your loan right now, the new loan would also require mortgage insurance.
  • This program is eligible for primary residences and second homes.
  • Closing costs can be financed into the new loan amount.
  • If your loan is otherwise government-backed, ie FHA or USDA you are ineligible for the Obama refinance program.

Ok, so what’s the catch with the Obama refinance program?

The catch is your loan needs to be owned by Fannie Mae or Freddie Mac.

Bottom Line- this program will more than likely help many people refinance their homes at relatively low costs for monthly payment reduction benefits.

If you would like to learn if you qualify for this program, contact us. You can also get an Obama refinance rate quote with no obligation. Find information on the Obama Refinance Program.

 

 

 

 

Posted in:

RELATED MORTGAGE ADVICE FROM SCOTT SHELDON

Mortgage Word Cloud Art

Why your income is your lifeline to finance a home

Getting mortgage loan financing requires you providing a blend of good cash, ample credit, and…

Why the purchase price in a real estate transaction should not be the single most important factor

Why the purchase price should not be the single most important factor

When buying a home most would believe the number one most important thing you need…

How to avoid getting a jumbo loan due to Coronavirus

Here are 2 mortgage process problems you will want to avoid

Securing mortgage loan financing is the cornerstone of financial prosperity in America. It’s one of…

Self Employed Borrowers

Here is a legit non-traditional income program for self-employed mortgage borrowers

Traditionally, self-employed mortgage borrowers are more heavily scrutinized by mortgage companies because of their gyrating…

View More from The Mortgage Files:

1 Comments

  1. […] balance or depending on whether the loan is owned by Fannie Mae or Freddie Mac, looking at the Obama Refinance Program which is slated to take effect on November […]



begin your mortgage journey with sonoma county mortgages

Let us make your mortgage experience easy. Trust our expertise to get you your best mortgage rate. Click below to start turning your home dreams into reality today!