FANNIE MAE & FREDDIE MAC HIGH LTV REFINANCE

Loan Programs Name:

• Freddie Mac Relief Open Access

• Fannie Mae DU Refi Plus

Summary:

• 105% -125% LTV (Rate/Term refinance only)

• Loan must be backed or owned by either Fannie or Freddie
• NO minimum credit score requirement (however, credit report must be submitted)
• NO CLTV requirements (existing 2nd Mortgages may be re-subordinated)
• Primary, 2nd Homes (up to only 105%), and 1-4 units-investment property (up to only
105%)
• Mortgage Insurance is not required if your existing loan does not have mortgage insurance
• High balance loan amounts are eligible

Benefits

• Homeowners will be able to take advantage of the current low interest rate--- They can keep
their home.
• Opportunity for homeowners to convert their ARM or interest-only-payment loan to a fixed
rate mortgage
• NO minimum credit score requirement
• NO prepayment penalty for the new loan

Some of Underwriting Guidelines/ Restrictions:

• NO Cash out----- Rate & Terms only

• NO rate buy-down allowed
• Same borrowers must be on the original and new loan - NO New Borrower(s)
• Existing mortgage must be current – NO LATE PAYMENT
• Qualifying Ratio will be determined by Loan Prospector (Desktop Underwritting)
• Need to be approved by Freddie Mac or w/ Lien Holder of Service Provider you are
refinancing
• Verbal VOE will be verified
o Salaried : minimum one-month current pay stub
o Self-Employed: minimum one-year’s Federal income tax return. Business must exist
and business verification will be required.
• A signed 4506-T is required
• Full appraisal is required
Loan Verification Lookup Websites:

• http://loanlookup.fanniemae.com/loanlookup/
• https://ww3.freddiemac.com/corporate/

COST:

• Regular REFI : 0.5 point charge

• NEW Loan : 0.5 point charge
• DU Refinance : 1.0 point charge

Additional Fee:

• Global Realty’s Admin Fee $ 199

• Global Realty’s Processing Fee: $ 699
• MortgageClose.com’s Underwriting Fee: $ 1095

Subtotal $ 1993

KEYS for Talking:

• Pre-Qualifications:

1) 105.01% < Loan Amount /(divided) Market Value < 125%

2) Has to be either Fannie or Freddie loan. Using the links above to look up.
3) No Late Payment
4) Owner must be employed (either salaried or self)
5) Emphasize on Benefits stated above

• Final Approval will be done by Freddie Mac, Fannie Mae or Lien Holder