HARP UPDATE

 FOR UPSIDE DOWN BORROWERS!

 

Arizona Wholesale Mortgage Inc. is currently  doing both the Fannie Mae DU Refi Plus and the Freddie Mac LP Relief Refi for borrowers who are currently upside down on their home mortgage loan.

The first step is to determine whether your home loan is being serviced by

Fannie Mae  or  Freddie Mac

http://www.fanniemae.com/loanlookup/                            http://www.freddiemac.com/mymortgage/

If your home address is found on the Fannie Mae website than your loan is currently being serviced by Fannie Mae and you may qualify under the Fannie Mae Du Refi Plus program.

If your home address is found on the Freddie Mac website than your loan is currently being serviced by Freddie Mac and you may qualify under the LP Relief Refinance.

Next Step: Did your current mortgage close on or before May 31, 2009?  If you answered yes than you qualify.

Have you had a LOAN MODIFICATION on this residence? If yes, you don’t qualify.

What if you can’t find your home listed on either one of these websites?

If your current mortgage is an fha loan, you can always refinance as an fha streamline without an appraisal.

If your current loan is either serviced by a private investor or is a jumbo loan, then unfortunately at this time you do not qualify.  If your home is financed by the VA you can do a VA streamline loan.

QUALIFICATION FOR THIS LOAN:

1. YOU MUST BE CONTINUOUSLY EMPLOYED FOR THE LAST 2 YEARS.

2. YOU CAN NOT HAVE ANY 0-60 DAY MORTGAGE LATES ON A DU REFI PLUS & 0-30 DAY LATES ON THE LP RELIEF REFI.  1 LATE PAYMENT CAN OCCUR BETWEEN THE 7TH-12TH PAYMENT ON THE FREDDIE MAC PROGRAM.

3. YOU CAN REFINANCE ANY TYPE OF RESIDENCE: PRIMARY,SECOND HOME, OR INVESTMENT HOME.

4. IF YOU HAVE A SECOND MORTGAGE, IT WILL NEED TO BE RESUBORDINATED & YOU WILL BE REQUIRED TO PAY THE SUBORDINATION FEE. THIS AMOUNT CAN NOT BE ROLLED INTO YOUR LOAN. HOW MUCH DOES THE SUBORDINATION COST? YOU WILL NEED TO CALL YOUR LENDER TO FIND OUT.

5. YOU CAN REFINACE MANUFACTURED HOMES, TOWNHOMES, SINGLE FAMILY RESIDENCE, AND CONDOS.

6. ON FREDDIE MAC LOANS, YOUR AVAILABLE BALANCE VERSUS YOUR CREDIT LIMIT CAN’T EXCEED 50%.  YOUR DEBT TO INCOME RATIO CAN’T EXCEED 45%.  RATES ON FREDDIE MAC AVERAGE .125 TO .250 HIGHER THAN FANNIE MAE LOANS.

MI QUESTIONS:
As of 4/12/12  it is taking several weeks to transfer MI.  If you have United Guarantee they are taking 30-45 to transfer your certificate.

At this point in time an appraisal is not required unless Du or LP flags the system & requires ones.  Instead you will be required to pay a $75 appraisal inspection waiver fee.  However, not all companies charge the $75 fee.

Do I need to list asset on the application?  If you are rolling the closing costs into your loan than no.  If you are paying your own closing cost fees at closing than yes.  If your debt  to income ratio is too high you maybe required to provide assets to show you have the ability to repay this loan.  If you have an investment home, than you need to show 6 month worth of assets for the rental property.  If this is a second home than no.

 INTEREST RATES: 

There are only two rates for these programs.  The first rate is for a primary residence.  The  second rate is for second homes & investment homes. 

Call Arizona Wholesale Mortgage Inc. for more information 602-358-8717.