News came out recently about an expanded refinancing program Fannie Mae and Freddie Mac will be offering that will help underwater homeowners refinance their homes at up to a 125 percent loan-to-value ratio. This is great news for a lot of people but it still leaves a lot of people out.
I spoke to Chuck Walden, a loan officer with Prospect Mortgage, about this today and here's his explanation of this program.....
"It is basically expansion of the current Fannie Mae Refi Plus and Freddie Mac Open Access loans that allow homeowners to refi if they don’t have any equity or very little. The problem is that Fannie and Freddie allow 125 percent loan to value (LTV) but most lenders only want to risk going up to 95 percent. So the program is there, but not available to everyone. If they do expand it and are easier on appraised values and just focus on credit scores and late payments, it will be awesome. BUT, will lenders do what Fannie and Freddie are allowing is another story"
This article from CNN Money talks a little more in detail about the program and the qualifications.
If you have more questions about this or any other mortgage or real estate related issue, please contact Chuck Walden at 678-725-8076 or myself at 404-663-7063.
www.SteveSellsGwinnett.com Steve Rider, CDPE Realtor with Keller Williams Lanier Partners in Braselton Georgia. Covering Barrow, Jackson, Gwinnett and Hall Counties in Northeast Georgia. If you're looking for real estate in Gwinnett County please contact me at 404 663 7063 or firstname.lastname@example.org.