125% Refinance Programs

Fannie Mae DU Refi Plus and Freddie Mac Open Access:


The government has gotten aggressive recently and approved two 125% Refinance Programs, the Fannie Mae DU Refi Plus and the Freddie Mac Open Access program.


These programs are referred to as 125% Refinance Programs because they allow home owners to refinance their mortgage even if they owe more than the home is worth. The programs allow for financing to 125% of the value of the home.


Here are a few more key highlights for this great program:

If you don't have mortgage insurance on your current home loan, you won't on the 125% Refinance Programs.
Lighter documentation is allowed in some cases.
Nationwide lending is available.
Your mortgage must be serviced by Fannie Mae or Freddie Mac in order to qualify.
Your credit has an impact on the rate you can obtain, but is not a factor on qualifying, as long as you pass the computer underwriting system.


The Freddie Mac Open Access program was released recently. This new program helps families with Freddie Mac backed mortgages to refinance under the initiative, where previously they may not have been able to take advantage of this program.


The major change is that home owners are now allowed to go to a new bank to obtain the Freddie Mac Open Access mortgage, where previously, they had to go directly to their servicer. This was a big announcement as a large percentage of home owners were unable to take advantage of the low rates we have been seeing prior to the change. In addition to this change, home owners also can now refinance if they owe up to 125% of their home's value, where previously, the limit was 105%, unrealistic in some areas.

Call Jason Whitehead, Mortgage Broker: (619) 861-7126.