When the HARP program was eliminated at the end of 2018, it was replaced by two new programs including the Fannie Mae High Loan To Value Refinance program. I will take you through the details of this program and whether it makes sense for you. If you are already interested, click to speak with a high loan to value refinance lender now. This loan program is REALLY easy to qualify for. It is a great program.
Who Is The Program For?
The high loan to value refinance program is for people who have a Fannie Mae mortgage now, who are making on time payments, and whose loan to value ratios (LTV) is higher than what would be accepted for a traditional mortgage.
Benefits For Borrowers
Every borrower must benefit from this program in at least ONE of the following ways…
- A lower interest rate
- A shorter amortization or loan term/period.
- Reduced monthly payments of both principal and interest.
- A more stable mortgage loan type such as a fixed rate instead of the uncertainty of an adjustable rate mortgage.
- No maximum LTV ratios for fixed loans and 105% for ARM loans.
- There is no credit score requirement!
- No maximum debt to equity ratio either!
What Are The High Loan to Value Eligibility Requirements?
- The mortgage that is being refinanced must be a Fannie Mae mortgage but it cannot be a Fannie Mae HARP / DU Refi Plus mortgage.
- Borrowers must be making current payments on their existing loan with no mortgage lates in the past 6 months and only 1 late payment in the past 12 months.
- Your current mortgage must be at least 15 months old.
- The note date of your mortgage must be on or after October 1, 2017
- The LTV (loan to value ratio) must be at least 95% – See additional LTV info below.
High Loan to Value Employment and Income Requirements
- You are not required to verify your income.
- You must provide at least ONE of the following:
- Verbal verification of employment from your employer
- Documentation of non-employment income
- Documentation that you have 12 months of mortgage payment reserves.
Additional High Loan to Value Program Features
- If your current loan has mortgage insurance (MI), then it must be transferred to the new loan. If your current mortgage does not have mortgage insurance, then it is not required for the new loan!
- Reduced documentation requirements for income, assets and employment.
- Underwriting options (info for lenders) – both desktop and manual.
The Following Current or Existing Loans Are Ineligible For The New High Loan To Value Refinance Program
- Existing DU Refi Plus or Refi Plus loans.
- Loans that have some sort of repurchase demand
High Loan To Value Refinance Loan Requirements
- The new application must be dated on or after November 1, 2018
- The loan application must be a new one and cannot have been created before November 1, 2018
- The new loan must be a fixed rate loan. It can be an arm but only if the existing loan was also an arm. The new ARM must also have a minimum initial fixed term of 5 years.
- The new loan term must be 30 years or less.
- Temporary interest rate buy downs are not permitted.
- The new loan amount must only cover he existing loan balance, closing costs, points (max $5,000) and a maximum cash back or cash out of $250.
- Lenders may actually provide an incentive by paying a portion of the loan balance at closing.
Minimum LTV Requirements – High Loan to Value Refinance
- Primary Residence 1 unit = 95.01%
- Primary Residence 2 units = 85.01%
- Pimary Residence 3-4 units = 75.01%
- Second Homes 1 unit = 90.01%
- Investment Properties 1-4 units = 75.01%
HIgh loan to value frequently Asked Questions – FAQ
When is this program available? On or after November 1, 2018
If I have no equity in my home, can I qualify? Yes, that is what the program is for.
If there a maximum loan to value ratio? No, your home can be so far underwater that it is worth way less than your current loan. You can still refinance all of it under this program.
Do I need to show my income? No, all you need to do is prove that you have a job. Your income will not be factored into the loan underwriting process. Awesome right?!
If I had a recent bankruptcy, can I still qualify? Yes, lenders are not reuired to comply with the normal waiting periods for bankruptcies and foreclosures.
Do I need to verify my assets? No, not unless you cannot verify your employment.
Does the current loan need to be a Fannie Mae loan? Yes it does.