DU Refi Plus

DU Refi Plus is a new program offered by Fannie Mae, which is part of the Making Home Affordable Program the government recently introduced. It is designed to make refinancing faster and easier for homeowners. 
 
The fewer restrictions can possibly lower monthly payments for borrowers qualifying for the Fannie Mae refinancing program.
 
What is DU Refi Plus?
This program is constructed to help financially struggling homeowners meet their mortgage payments to keep their homes by refinancing their mortgage and lowering their monthly payments.  Home mortgages which Fannie Mae owns or guarantees are eligible for streamlined refinancing. With this program, homeowners can refinance up to 125 percent of their home’s value.
 
Major Features of DU Refi Plus:
Open to condos, co-ops, PUD’s, manufactured homes, and other common property types
Second homes qualify if they are just one unit, but one to four unit primary residences and investment properties are eligible for DU refinancing.
Eligible properties include two-unit primary residences with high-balance loans, and three-to-four-unit primary residences, investment properties, and second home co-ops.
Loan-to-values of the property can be as high as 125%, and there is no maximum limit on combined LTV. Second mortgages must be re-subordinated because subordinating financing is prohibited. If the LTV is 80% or less, the homeowner can have a credit score below 580, and the minimum credit score is waived if the mortgage is an adjustable rate.

DU Refi Plus is a new program offered by Fannie Mae, which is part of the Making Home Affordable Program the government recently introduced. It is designed to make refinancing faster and easier for homeowners. 

 
The fewer restrictions can possibly lower monthly payments for borrowers qualifying for the Fannie Mae refinancing program.
 

Important guideline
Cash out is limited to covering reasonable closing costs only.

All existing subordinations must be re-subordinated, and new subordinate financing is prohibited. In addition, paying off existing subordinate financing is not allowed (limited cash out).

Adjustable-rate mortgage loans with fixed terms of less than five years will not be approved.
 

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Interest-only, MyCommunityMortgage (MCM), Home Style Renovation and balloon mortgages are not eligible for the Fannie Mae refinancing program.