Phase One of Fannie Mae’s Home Affordable Refinance Program is Under Way
Lenders got phase one of Fannie Mae’s Home Affordable Refinance Program (HASP) under way last week. HASP’s objective is to reduce the number of additional foreclosures in the United States. Freddie Mac has a similar program called the Relief Refinance Mortgage. Phase One highlights:
Customers can refinance their existing mortgages up to 105% of current value
This 105% is regardless of occupancy…..primary residence, second home, and investment properties are included.
Current loan must be an existing Fannie Mae or Freddie Mac held loan.
Current loan must be in lenders existing servicing portfolio….. and cannot have been sold to another servicer. (I expect this to change within the next few weeks).
No mortgage insurance is required.
Current loan cannot have mortgage insurance on it.
Borrower must be benefiting from refinance………..lower payment or move to a more stable product.
Loan amount is limited to $417k with no cash out allowed. It can include closing costs with the Fannie Mae version or up to $2500 in closing costs for the Freddie Mac version.
If current loan has an existing home equity (2nd trust), the second trust holder must agree to subordinating the second trust and they may or may not agree to this. A 2nd trust cannot be rolled into the new loan.
Some loans may NOT require an appraisal.
In other mortgage news, conforming plus loans are still only being done at a maximum loan amount of $625,500 but should be increasing to $729,750 in the very near future. And finally, rate updates this week for 30 yr. fixed loans:
- FHA/VA below $417k and below – 4.875% with 0 points.
- FHA/VA above $417k to $729,750 for FHA and $812k for VA 4.875% with 1 point.
- Conventional conforming $417k and below – 5% with 0 points.
- Conforming plus from $417k to $625,500 – 5.25% with 1 point.
- Jumbo over $625,500 – 6.125% with 1 point.
To see my complete report, click here.
Rob Clark, Preferred Mortgage
Thanks Rob, for this timely information.