125% refinance | Making Home Affordable
Fannie & Freddie 125% LTV Refis
In an effort to reach out to more homeowners who are paying their mortgage, but could benefit from a refinance, Fannie Mae and Freddie Mac have further liberalized their underwriting rules under their special program created to help carry out the administration’s Making Home Affordable foreclosure prevention program.
Fannie’s Home Affordable Refinance and Freddie’s Relief Refinance Mortgage are now available for homeowners even further underwater (with home values less than the current mortgage).
The programs now will accept loan-to-value ratios of as high as 125% (up from 105%). The refinance opportunities are available only for borrowers with mortgages currently held or guaranteed by Fannie Mae or Freddie Mac.
Borrowers should work with their existing servicer to refinance their mortgage. In the vast majority of these cases, the current servicer will not have to re-underwrite the borrower. © 2007, Real Estate Information Services & Capitol Assets
