Refinance your 1st mortgage up to 105% Loan-to-Value
Home Affordable Refinance Program is a great option for borrowers looking for more stable payments in declining markets.
Who can be eligible for a program:
- Only Freddie Mac or Fannie Mae loans.
- Maximum Loan-to-Value (LTV) is 105%.
- There are CLTV limits (Freddie Mac) and 110% CLTV (Fannie Mae).
- Rate/Term Refinance only.
- 40, 30, 20, 15 year Fixed Rate and 5/1, 7/1, 10/1 ARM programs are allowed. If the existing loan is a fixed rate product, the new loan cannot be an adjustable rate mortgage product.
- Only 1st mortgage is eligible.
- Second Mortgages are ineligible. Existing subordinate financing must be re-subordinated or paid off with borrower’s own funds.
- Sub-prime, FHA, VA, Alt-A, High Balance Conforming Loans (any loan above the conforming loan limits) are ineligible.
- The current occupancy (primary residence, second home or investment property) must be the same as when the original loan closed, except that the occupancy may have changed to primary residence.
- Property type is allowed:
- For primary residence: SFR, 2-4 units, Coop, Condo, PUD
- For second home: SFR, Coop, Condo, PUD
- For investment property: SFR, 2-4 units, Condo, PUD
- Fully amortizing only; the Interest-Only payment feature is not allowed.
- A borrower must have an acceptable payment history on their mortgage. The existing mortgage being paid off cannot have any 30-day late payments (Freddie Mac) and 60-day late payments (Fannie Mae) in the last 12 months.
- The program permits streamlined documentation flexibilities unless the lender chooses to obtain full documentation for the new mortgage loan.
- 620 minimum Credit Score for primary residence and 680 for Second Home and Investment Property.
- If the existing loan does not have MI (mortgage insurance) coverage, then no MI is required for the new loan. If the existing loan has mortgage insurance, the loan is currently not eligible to be refinanced under this program.
You can check on the Fannie Mae website or the Freddie Mac website if your loan qualifies for refinancing under the new program.
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