For those who had wanted to refinance, but due to falling home prices, did not have the equity in the home to do so, now they can. Due to the Homeowner Relief Act, refinances are now available to homeowners with loan balances up to 105% of the value of their homes. As of today, this program is being offered to help people lower their housing expenses. Note, these loans are being made available at current interest rates with little documentation. Some of the highlights are set forth below:
· Loan amount cannot exceed $417,000 (rules out much of Manhattan but not all)
· Up to 105% loan-to-value on the first mortgage (and no limit on the balance of a second mortgage or HELOC)
· Loans owned by Freddie Mac do not require income to be verified
· Loans owned by Fannie Mae require only 1 paystub or 1 year tax return
· No debt ratios are calculated*
· No minimum FICO score required*
· No reserves (i.e. assets) are required*
· 1-4 family, condos and co-ops properties allowed
· Investment property permitted
· Appraisals not always required
*Some restrictions apply
Contact Dan Shlufman at FCMC Mortgage Corp at 973-574-0900 or [email protected] for more info.
