Refinance Fannie Mae with DU Refi Plus

Government Programs to Help Homeowners Refinance Fannie Mae’s DU Refi Plus

Background of the Program…

Fannie Mae and Freddie Mac are two government back organizations which were created to provide a stable outlet for banks and mortgage lenders to sell their loans. Odds are, if you have a conventional home loan that it is held by Fannie Mae or Freddie Mac.

In order to prevent help prevent more foreclosures the US Government enacted the Making Home Affordable Act in the spring of 2009. The act allowed both Fannie Mae and Freddie Mac to develop their own distinct programs to help homeowners refinance their mortgages.

The Nuts and Bolts…
  • The Fannie Mae DU Refi Plus loan program was created to help homeowners refinance out of adjustable rate mortgages (ARMs) or high interest rate loan into more stable lower interest rate loan products even if their home’s value has dropped considerably
  • The first loan amount can be up to 105% Loan to Value (LTV) with up to 125% Combined Loan to Value with a second mortgage
  • If your current mortgage does not have Mortgage Insurance (MI), the new loan also will not have MI regardless of the LTV
  • Income Criteria is extremely flexible, even if you have lost some of your income you may still be approved.

In order to qualify for Fannie Mae DU REFI PLUS you must do the follow….

  • Confirm that your mortgage is owned by Fannie Mae, which is done at the Fannie Mae property lookup site located at http://loanlookup.fanniemae.com/loanlookup/
  • Have decent credit, 680 or better credit score
  • Anticipate a new loan balance of 105% LTV or less based on today’s market value of your home
  • Refinance only your 1st mortgage, Second Mortgages must be subordinated under this program
  • Have acquired your current loan before March 1st of 2009
  • Contact Northwest Mortgage Experts and obtain Fannie Mae DU Approval

3 Steps to a Fannie Mae DU REFI PLUS Loan

  1. Determine if your mortgage is held by Fannie Mae
  2. Contact us to determine if you are eligible and obtain DU approval (takes less than 24 hours)
  3. Lock in your Interest Rate

Common Questions

  • How are the interest rates? Excellent, similar to today’s 30 year fixed rates and in some cases better because the government is supporting the program and backing the lenders.
  • What about Cash out Loans? Sorry, this program does not allow cash out.
  • Can I finance my closing costs into the loan? Absolutely, all costs, points, and pre-paid can be financed into the new loan balance meaning no out of pocket expense for this loan type.
  • Can I have a second mortgage? If you already have a 2nd mortgage it must be subordinated to the first.
  • If the LTV on my first mortgage was 80% and the LTV on this new mortgage is 95% because my homes value has dropped, will I have to pay Mortgage Insurance? No, that is the beauty of this program, if you didn’t have MI before you will not have MI on the new loan.

    Don’t let these interest rates pass you by, contact us today!