Unlike the FHA “HOPE for homeowners” program released in 2008 that was touted as being able to help “millions” and actually only helped hundreds there’s a new sheriff in town!
The “Making Home Affordable” program announced by President Obama in February and released by Fannie Mae on 03.04.09 hit the streets in full force this week.
This new program provides refinance opportunities to borrowers with mortgages held or guaranteed by Fannie Mae who have demonstrated an acceptable payment history on their mortgage but due to a decline in home prices have been unable to refinance to obtain a lower payment or move to a more stable product.
For example, lets say you purchased a home for $250,000 at the peak of the market in 2005 and made a full 20% down payment and financed the balance with a juicy 4.25% 5-year Interest-Only ARM. Obviously rates on 30-year fixed mortgages are at an all-time low and you really want, and may NEED to convert over. However, the home value has dropped to $209,000. By today’s mortgage standards you would either need to move to an FHA loan (over 95% loan-to-value) or pay down the loan a bit and add PMI – either option will be expensive in cash and/or new payment. What to you do???
MAKE HOMES AFFORDABLE!!!
Three key components to see if you fit:
1. Your present loan must be owned by Fannie Mae (click to see)
1- New loan can be up to 105% of the CURRENT HOME VALUE.
2- No monthly MI is required on the new loan if is none on the current loan.
Obviously there’s alot more under the covers on this program; to read more check out the Making Home Affordable website.
While some investors are simply not partaking in the new program, some are and BOY ARE THEY GOING TO BE BUSY!!! SunStreet Mortgage is committed to helping customers stay in their homes and continues to offer other refinance products. Stay tuned for updates as Todd Abelson & Tyler Ford in Tucson, Arizona are working diligently to offer the full breadth of the Fannie Mae Refi Plus offering as quickly as possible.
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