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DU Refi Plus™

Every mortgage loan that qualifies for DU Refi Plus™ Mortgage is unique. Please complete the form on the right to be contacted by one of our mortgage professionals, or call Total Mortgage at 877-868-2503 to speak to a licensed loan officer now. A mortgage expert would be happy to assist in getting you qualified, while also securing the lowest available mortgage rate possible.

 

DU Refi Plus™ Loosens Underwriting Requirements

UPDATE: DU Refi Plus™ has been extended for another year! On March 2, 2010, Ed DeMarco, Acting Director of the Federal Housing Finance Agency (FHFA), revealed the Home Affordable Refinance Program (HARP) has been extended to June 30, 2011. The HARP program consists of Frannie Mae's DU Refi Plus™ and Freddie Mac's Relief Refinance Mortgage℠.

According to DeMarco, "FHFA has reviewed the current market situation and the state of mortgage insurance availability and has determined that the market conditions that necessitated the actions taken last year have not materially changed - Accordingly, to support and promote market stability, and to encourage lenders and other mortgage market participants to fully adopt the HARP program, including the implementation of the October 2009 expansion of loan-to-value ratios (LTVs) to 125 percent, FHFA is authorizing the extension of HARP until June 30, 2011."

The intention behind DU Refi Plus™ is to allow homeowners whose mortgage loan is owned by Fannie Mae, and the value of their home is less than owed on an existing mortgage, to refinance and take advantage of the historically low current mortgage rates.

Call a Total Mortgage expert now at 877-868-2503 to find out how we can customize a mortgage loan with some of the lowest current mortgage rates for you.

What is DU Refi Plus™?

DU Refi Plus™ is Fannie Mae's newest version of Desktop Underwriter, version 7.1. DU Refi Plus™ was designed to reignite the mortgage industry by simplifying the refinance process for millions of Americans. With less-stringent underwriting guidelines that include lower acceptable credit scores, decreased income documentation and even appraisals being waived in certain situations, Fannie Mae allows homeowners to refinance up to 125% (loan-to-value or LTV) of the current appraised value of their homes.

Among the other significant changes include Fannie Mae accepting credit scores below the current 580 requirement, as well as borrowers only having to submit one current pay stub, rather than the conventional two. The ultimate goal of Fannie Mae's DU Refi Plus™ is to assist homeowners to avoid foreclosure and remain in their homes by refinancing into a lower mortgage rate and ultimately decreasing their monthly mortgage payment. The most significant element within DU Refi Plus allows homeowners to refinance, even if the value of their home is less than they currently owe on their existing mortgage. Combined with low current interest rates, borrowers can anticipate lower principal and interest payment each month. In addition, mortgage bankers, mortgage brokers and mortgage lenders are encouraged to provide better alternative products to their borrowers, such as refinancing adjustable-rate mortgages (ARMs) to more stable fixed-rate mortgages.

Highlights of DU Refi Plus™ include:

  • All property types are eligible for refinancing, including co-ops, condos, manufactured homes and Planned Unit Developments(PUDs).
  • Primary residences and investment properties are eligible up to 4 units.
  • Second homes are only eligible for 1-unit properties.
  • Maximum LTV is 125%.
  • No maximum CLTV/HCLTV.
  • Minimum credit score of 580 is NOT required on any DU Refi Plus™ loan.
  • Minimum credit score of 680 is NOT required on high-balance ARMs.
  • One current pay stub and a verification of employment (VOE) will be required for employees receiving salaries.
  • One-year of federal tax returns is required for self-employed and commissioned borrowers.
  • Appraisals will be waived in some situations and exterior-only inspections may only be required in other situations.
  • Debt-to-Income (DTI) is determined by DU.
  • Mortgage Insurance (MI) is required only on certain loans with an LTV greater than 80%. If an existing Fannie Mae loan already has MI and the LTV is still greater than 80%, then the lender has the option to get the same MI coverage currently in place or obtain the standard level of MI.
  • MI is not required on loans with an LTV over 80% if the existing mortgage does not already have MI.
  • Project reviews for condos, co-ops and PUDs are NOT required. If a lender determines the property is a condo or co-op hotel/motel, then the property is ineligible.
  • Properties that have previously been limited to 75% LTV/CLTV/HCLTV will now be eligible to 80% LTV/CLTV/HCLTV (including 2-unit primary residences with a high-balance loan, investment properties, second home co-ops and any 3- to 4-unit primary residences, second-home co-ops and investment properties.

Restrictions of DU Refi Plus™

Fortunately, the benefits of DU Refi Plus™ outweigh the restrictions, however, here are some of the restrictions:

  • No cash-out refinances
  • No cash-out refinances only
  • No new subordinate financing (HELOCs or HELOANS)
  • Existing HELOCs or HELOANs must be re-subordinated
  • Cannot pay off existing subordinate financing (no cash out only)
  • No ARMs with fixed terms less than 5 years
  • No balloon mortgages
  • No interest-only mortgages
  • No Texas 50(a)(6) mortgages
  • No MyCommunityMortgage (MCM) mortgages
  • No HomeStyle Renovation mortgages

DU Refi Plus™ debuted the weekend of April 4, 2009 in the release of Desktop Underwriter Version 7.1*.


* Specific details pertaining to DU Refi Plus™ are subject to individual lender guidelines.

Call a Total Mortgage expert now at 877-868-2503 to find out how we can customize a mortgage loan with some of the lowest current mortgage rates for you.

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