Presentation on theme: "DU Refi Plus 3/14/13. DU Refi Plus Streamlined refinance offered through Fannie Mae DU Refi Plus is allowed on: 1-4 unit owner-occupied 1 unit second."— Presentation transcript:
DU Refi Plus 3/14/13
DU Refi Plus Streamlined refinance offered through Fannie Mae DU Refi Plus is allowed on: 1-4 unit owner-occupied 1 unit second home 1-4 unit investment DU Refi Plus will allow Property Inspection Waiver (PIW) Maximum cash back to borrower is $ Verify current loan ownership KnowYourOptions.com by Fannie Mae KnowYourOptions.com
DU Refi Plus Loan Parameters Fannie Mae acquisition date must be prior to June 1, 2009 ≤ 100% LTV minimum 640 Credit Score % LTV to 150% LTV minimum 680 Credit Score Unlimited CLTV All existing subordinate financing must be re-subordinated or paid off with borrower’s own funds. New subordinated financing is only permitted if it replaces existing subordinate financing. Existing purchase money subordinated financing may not be satisfied with the proceeds of the new DU Refi Plus loan.
DU Refi Plus Loan Parameters ≤ 125% LTV ≤ 125% LTV eligible: 1-4 unit primary residence including condos and PUDs 1 unit second home 1-4 unit investment property Conforming and High Balance loan amounts Minimum 680 credit score % LTV – 125% LTV 0x30 in previous 12 months. 1x30 in previous 12 months by exception
DU Refi Plus Loan Parameters % - 150% LTV % – 150% LTV eligible: Owner-occupied 1 unit single family including condos and PUDs Conforming loan amounts only; no High Balance Minimum 680 credit score 0x30 in previous 24 months
Benefit to Borrower Borrower must receive a benefit from the refinance as follows: Reduce monthly principal & interest payment A reduced interest rate A reduced amortization term A more stable loan product (ARM to FIXED) Interest only to fully amortized A 30 year to a 10, 15, 20 year term allowing borrower to build equity more quickly is allowed
Appraisals Appraisal requirements per DU Findings If a Property Inspection Waiver (PIW) is granted the loan must be re- submitted to DU using the estimated value provided by DU. An AVM/2055 is not allowed in lieu of re-submitting to DU with estimated value If a PIW is not granted by DU an appraisal will be required per DU
Borrower Eligibility Borrower(s) may be added to the new loan provided the original borrower(s) remain on the loan. A borrower may be deleted from the loan as long as one original Borrower remains on the loan. The borrower being removed from the loan must also removed from the deed and will retain no ownership interest in the property.
Mortgage Insurance Loans with or without existing MI are eligible. Loans with existing MI, the existing MI must be from one of the following MI Companies: Genworth MGIC United Guaranty Radian If existing MI is lender paid (LPMI), only single premium LPMI is eligible. The DU Findings will indicate if the loan has MI and the current MI provider. The original MI company provides the MI modification.
Ineligible Transactions Ineligible Transactions: Loan has previously been refinanced under HARP (with exception of loans refinanced between March 1, 2009 through May 30, 2009) Loan is currently under a repurchase agreement Loans with a temporary buy down