Fannie Mae’s new refinance initiative has three main components:

1. Expand refi opportunities for Fannie Mae to Fannie Mae refis through additional underwriting flexibility and eligibility, DU Refi Plus
2. More flexibility for a refi from the same lender.
3. Allows LTV up to 105% of the current value, but the current value may not be less than the original appraised value.
4. Provide a solution for borrowers with LTV’s above 80% who currently may not be able to refinance because of MI coverage requirements.
   1. If original loan did not require MI then the new refi will not. Loans over 80% LTV will require the original level of required MI. Loans that the MI was canceled will not require new MI. LPMI is permitted for DU Refi Plus
5. Eligible mortgages are existing mortgage that were fully documented and received an approved eligible fully documented according to the original DU Underwriting findings report.
6. Eligible property types are primary residence, second home, or investment property.
   Limited cash out only, and existing purchase money subordinate financing must be re-subordinated and may not be satisfied with the proceeds of the Refi plus loan.
7. Existing mortgage must be current.
8. No minimum credit score and the borrower must meet Fannie’s guidelines with respect to the presence of a bankruptcy or foreclosure.
9. Limited documentation required. Verbal verification of employment, or a VOE for the self employed from a disinterested third party.
10. Debt ratios do not need to be calculated, but lender must determine that the borrower has a reasonable ability to repay based on current information.

For more information click the link below and contact the company who you make your mortgage payment to.

http://www.makinghomeaffordable.gov