If you built or bought your home in the peak years of 2004-2007, financed your home with an FHA loan, and are now finding yourself in a difficult position, you may want to look into this option. The Federal House Finance Agency (FHFA) recently announced a major expansion of the Home Affordable Refinance Program for Fannie Mae and Freddie Mac loans to help troubled borrowers.
The change will allow current borrowers with loan-to-value (LTV) ratios of more than 80 percent up to 125 percent (formerly 105 percent) to qualify if they meet other program requirements. This significantly expands eligibility for the program which allows borrowers to lock in today's lower rates or move into a fixed rate product. Higher fees will apply to loans with LTVs above 105 percent, but the program includes lower fees for borrowers who opt for a 20-year or 25-year term, to build equity faster and reduce interest payments over the life of the loan.
Borrowers can find out if they have a Fannie Mae or Freddie Mac loan by clicking on "loan look up", or can detemine eligibility for the program here. More information and a refinancing example can be found here. An eligibility
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