Fannie Mae Du Refi Plus Progam: Whats are the benefits of this du refi program?
Recently I have been looking into refinancing my home mortgage. The DU Refi Plus looks enticing to me. What are some of the advantages of using the du refi plus program over other methods like fha refinancing?
Tagged with: fha • home mortgage • refi
Filed under: Fannie mae Questions
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Jason,
I just refinanced my home and used DU Refi Plus. I actually refinanced back in October 2008 from a 30-year fixed to a 20-year fixed, and only got .125 better in rate at the time. When rates started to drop so drastically, I decided to refinance again to get the lower rates. However, when the appraisal came back, I had lost $35,000 in equity in my home from October 2008 to March 2009 due to declining property values. There was no way I was going to pay mortgage insurance. But Fannie Mae’s new program (DU Refi Plus) allows you to benefit from the lower rates and still not have to pay mortgage insurance (even if my LTV was over 80%) if your existing mortgage does not have mortgage insurance. That feature alone allowed me to continue the refinancing process. My rate went from 5.625 to 4.25 as a result.
The only catch is that your existing mortgage must be owned by Fannie Mae in order to utilize DU Refi Plus. If your mortgage is owned by Freddie Mac, they have a similar program called Relief Refinance Mortgage and it operates the same way.
Hope this helps. Best of luck!
Robert Hyder
Total Mortgage Services
DU Refi Plus™ has significantly reduced the underwriting requirements for refinancing an existing Fannie Mae loan.
Below are the highlights of DU Refi Plus™:
-All property types, including condos, co-ops, PUDs and manufactured homes, are eligible for refinancing.
-Primary residences and investment properties are eligible for 1- to 4-units. Second homes are eligible for 1-unit properties only.
-The maximum LTV is 105%. However, there is no maximum CLTV/HCLTV. Because new subordinate financing is not allowed, all existing second mortgages must be re-subordinated. In addition, because cash back is prohibited, all existing purchase money subordinate financing may not be paid off with the proceeds from the new mortgage.
-The minimum credit score of 580 will not be required if the loan-to-value (LTV) is 80% or less.
-The minimum credit score of 680 will not be required if an adjustable-rate mortgage (ARM) has an LTV of 80% or less.
-Properties previously limited to 75% LTV/CLTV/HCLTV will now be eligible up to 80% LTV/CLTV/HCLTV (properties include 2-unit primary residences with high-balance loans, any 3- to 4- unit primary residences, investment properties and second home co-ops).
-Only one current pay stub and a verbal verification of employment (VOE) will be required for salaried employees.
-Only one year of federal income tax returns is required for commissioned or self-employed borrowers.
-Appraisals may be waived or exterior-only inspections may be required on certain loans.
For more information please visit Total Mortgage below or call 1-888-868-2509. We are a trusted financial broker and have been around for over 10 years.
NO BENEFIT FOR YOU, BENEFIT FOR THE COMPANY ,NOT FOR YOU ,THEY JUST WANT YOUR FEES , THAT IS ALL.
FNMA Refi Plus is an excellent loan for the right scenario. You don’t get to choose if you are going to use it though. When your loan is run through DU your findings will tell you if it is eligible or not.