Great News for Underwater Homeowners
Changes to Government Refinance Program Announced!!
 
You may have heard that President Obama plans to open up refinancing to more homeowners who are underwater. If you are wondering what this means.. and  if you can benefit.. here are some facts to consider.

 
First it is important to realize that the president’s proposal is not a new program, but a revision to the current Home Affordable Refinance Program (HARP). However there is a big change: Now homeowners can refinance no matter how underwater they are!  Before homeowners could only refinance if they were 25% or less underwater, and even then many banks only let people who were 5% or less underwater refinance.
Revisions:

• Loan-to-Value Ceilings:The current loan-to-value ceiling of 125% will be removed entirely. 
• Appraisals: To the joy of everyone but appraisers, formal appraisals will be (possibly) eliminated. 
• Fee Reductions:Some fees may be reduced especially for mortgage terms shorter than 30 years.
• Eligibility Dates Don’t Change:ONLY loans created before May 31st 2009 and sold to Fannie Mae and Freddie Mac will be eligible
• Documentation:Income and other documentation is expected to be reduced, streamlining the process.
• When it will be available:Full Details to be published November 15^th with actual loans available hopefully by December 1^st.

FHA, VA, and USDA also offer special refinance options
 
To read more details, you can visit the FHFA Web site. And if you have any questions at all about what these changes mean or how they could impact you, call or email me anytime. I’m always happy to help.
 
Sincerely,
Tony DiGiuseppe