Desktop Underwriter Refinance Plus
There are so many different loan programs out there, it is hard to know what is available to you. One option is a DU Refi Plus, which was created for borrowers who demonstrate a satisfactory payment history on their current mortgage, but have not been able to refinance due to the decline in home prices. This loan is not available to everyone, but if your loan is Fannie Mae-owned it may be for you!
Program requirements
Types of available financing:
- Rate and term refinance (limited cash-out) ONLY
- Fixed rate ONLY
- May subordinate existing 2nd mortgage (some restrictions apply)
- Single-family, condo, PUD, rural properties
- Primary and investment, one to four units
- Second home, one unit
- Occupancy will be based on the CURRENT status of the home; it may have changed from the previous status. (Example: If the property was previously used as a rental but now you will be living in it as a primary residence.)
Eligible Properties:
- Single-family, condo, PUD, rural properties
Occupancy:
- Primary and investment, one to four units
- Second home, one unit
- Occupancy will be based on the CURRENT status of the home; it may have changed from the previous status. (Example: If the property was previously used as a rental but now you will be living in it as a primary residence.)
Maximum loan-to-value (LTV) and debt-to-income (DTI) requirements:
Primary Property
- 1 unit, max 125% LTV
- 2 units, max 105% LTV
- 3-4 units, max 95% LTV
Second Home
- 105% max LTV
Investment Property
- 1 unit, max 105% LTV
- 2-4 units, max 95% LTV
Maximum DTI is 50%
Ineligible for DU Refi Plus:
- ARM program with an initial fixed period less than 5 years
- ARM programs with the potential for negative amortization
- Mortgages with interest only
- Mortgages with temporary interest rate buydowns
- Reverse, second, or government mortgage
- Buydowns
- Must be owned by Fannie Mae as of 5/31/2009. You can go to the following link to determine whether it is owned by Fannie Mae: https://www.efanniemae.com/sf/mha/index.jsp
- Cash back to you cannot exceed $250
- Must be receiving a tangible benefit from the refinance (reduced monthly mortgage payment, ARM to a fixed, 30-year to 15-year, etc.)
- At least one person from the previous loan must remain on the new loan. If a spouse is being removed, you must be able to provide proof the remaining borrower has been making the payments from his/her own funds for the most recent 12 months. If they are being removed due to death, a death certificate will need to be provided. A borrower may be added as long as the existing borrower remains on the loan.
- May not require an appraisal if system determines a property fieldwork
waiver is applicable to your property - May not require mortgage insurance if existing loan does not have it and system dete
rmines it is not required. - Cannot waive the escrow account unless the existing loan had no escrows, or the current LTV is less than 80%
General requirements:
- Must be owned by Fannie Mae as of 5/31/2009. You can go to the following link to determine whether it is owned by Fannie Mae: https://www.efanniemae.com/sf/mha/index.jsp
- Cash back to you cannot exceed $250
- Must be receiving a tangible benefit from the refinance (reduced monthly mortgage payment, ARM to a fixed, 30-year to 15-year, etc.)
- At least one person from the previous loan must remain on the new loan. If a spouse is being removed, you must be able to provide proof the remaining borrower has been making the payments from his/her own funds for the most recent 12 months. If they are being removed due to death, a death certificate will need to be provided. A borrower may be added as long as the existing borrower remains on the loan.
- May not require an appraisal if system determines a property fieldwork waiver is applicable to your property
- May not require mortgage insurance if existing loan does not have it and system determines it is not required.
- Cannot waive the escrow account unless the existing loan had no escrows, or the current LTV is less than 80%
References
https://www.fanniemae.com/content/faq/harp-du-refi-plus-faqs.pdf
http://www.mortgagenewsdaily.com/mortgage_rates/blog/58271.aspx
http://www.wyndhamcapital.com/loan-programs/program.cfm/program/durefiplus
