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