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Mortgage Refinance- if your house is underwater or have credit / income issues

The new "Obama"program just came out to help borrowers refinance their mortgage that havent been able to because of credit, DTI or LTV issues. I am a loan officer and work with local bank that is now the largest in FL. I am unable to list the name of the company but to give you a hint the Jacksonville Jaguars stadium is named after the company I work for. If your loan is being serviced by us please give me a call. Send me a PM and I will give you my work number. If you havent been able to refinance your loan you will want to give your current servicer a call to see if you are eligible. Fannie Mae has just introduced this program and for the mortgage servicers that participate they are given a list of customers who are eligible to be refinanced and pre determined values for those customers based on an automated appraisal system. This refinance is a streamline refinance with almost no documentation required and no appraisal. Borrowers can only use this new program with their current mortgage servicer and if their loan is owned by Freddie Mac or Fannie Mae and aquired prior to May 31 2009 and June 1 2009 respectively. VA and FHA loans are not eligible. If you are not eligible for the new program you can refinance up to 125% LTV using a "full doc" loan with any mortgage company who partcipates in the program possibly without an appraisal. Hope this helps some people out.

The guidelines are as follows:

-eligible for investment, primay and second homes
-NO LTV(loan to value restrictions)
-no credit /DTI (debt to income) limits
-no appraisal needed
-bankruptcies/short sales/foreclosures are ok
-minimum documentation
-proof of insurance on the property
-signed application package
-lender has to do a verification of employment
-other checks may apply
-depending on lender other guidelines may apply

Things that may make you ineligible

-loan acquired by Fannie Mae after to June 1 2009 or May 31 2009 for Freddie Mac
-loan not owned by Fannie Mae and Freddie Mac (you can google them and look up your address to see if it is owned by either company)
-2nd mortgage or HELOC in 2nd lien position (limited to 100% LTV(loan to value) and unlimited CLTV (combined loan to value) and full doc loan
-LPMI(lender paid mortgage insurance) on original loan
-credit enhancements on the loan. Basically if you were suppose to have MI(mortgage insurance) on the original loan and the original lender waived it
-mobile or manufactured housing is ineligible
-judgments on the title of the house or tax liens on the property
-other restrictions apply but those are the main things

Privacy Policy/ Terms and Conditions
This message is intended to offer the public with important information regarding a new mortgage program that had just been introduced. Other terms and conditions may apply to all mortgage programs mentioned in addition to what was listed above. Please contact a loan officer to go over specific questions regarding your refinance.


  • PhinaticalPhinatical Posts: 864 Officer
    My understanding, and that of my mortgage servicer, is this new program is if your loan is NOT owned by Fannie or Freddie. The previous HARP/HAMP programs were only for those loans owned by Fannie or Freddie. They sent me a link that details the program and it contains this criteria in the list:

    • Your loan is serviced and owned by Wells Fargo — that means it is not an FHA, VA,
    Fannie Mae, or Freddie Mac loan, nor is it a loan owned by a private investor

    Here's the document: https://www.wellsfargo.com/downloads/pdf/homeassist/attorneys_general_settlement.pdf

    I'm still trying to do a refi myself so I am weighing all my options. Let me know if I have understood something incorrectly as I have been glued to this stuff for a couple years now and thought this one was for loans like mine (NOT owned by Fannie or Freddie).
  • seanhev77seanhev77 Posts: 276 Officer
    For the new HARP Streamline program I mentioned above; your loan HAS to be owned by Fannie Mae or Freddie Mac. Wells Fargo may have some internal program that they can offer their existing customers who have a loan not owned by Fannie or Freddie. Not sure what they have available for non- Fannie/Freddie loans.
  • PhinaticalPhinatical Posts: 864 Officer
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