go If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP.
You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:. Minnesota Burnsville Missouri Kearney St.
Louis Ohio Maumee. Green Bay - Velp Ave. Greenfield Hales Corners Janesville.
Madison - Fourier Dr. Madison - Marketplace Dr. In order to determine which homeowners are eligible for the new high LTV loans, they first must be paying on an existing Fannie Mae or Freddie Mac mortgage.
Next, the new refinance loan must satisfy one of the following criteria:. If the new loan meets one of those requirements, then the borrower must also meet all of the following criteria:.
Fannie Mae has some very specific rules about who can apply and how the loan is structured. This applies only to a single-family home. This program is available for investment homes, a vacation home or a multi-unit property with varying loan to value guidelines, outlined below.
If an applicant has a loan to value below the above-named percentages, they will need to apply for a standard refinance loan. Freddie Mac has a different approach to the ratios. Like the Fannie Mae loan, if a borrower finds that their new loan to value is below these ratios, then they would need to apply for a standard Freddie Mac refinance loan. It is possible to get approved for either of these loans without the need for an appraisal.
However, this is decided on a case by case basis. It is better to assume that a new appraisal will be needed, and then be pleasantly surprised if the lender tells you that your approval does not require a new review of the home.
If the current conventional loan has private mortgage insurance, then the new loan will require that the mortgage insurance be continued. For any homeowner currently paying on a conventional loan, and they did not take advantage of the HARP mortgage, this new offering could be a great way to refinance to an incredibly low-interest rate and get the refinance completed with much less paperwork and time.
Rather than provide their kids or grandkids with a check as a down payment on a home, some people choose to offer a gift of equity on an existing home.
The following will compare an FHA loan vs Conventional mortgage, not to show that one is better than the other, but to highlight the strengths of each mortgage.