DU REFI PLUS™

What is DU Refi Plus™
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DU Refi Plus™ was to light a flame into the mortgage industry by simplifying the refinance process for millions of Americans. With 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 home.

 

Among Fannie Mae's significant changes include accepting credit scores below the 580 requirement, as well as borrowers only having to submit one current pay stub.  The 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 lower interest rates, borrowers can anticipate lower principal and interest payments each month.

DU Refi Plus™ Benefits Include:

All property types are eligible for refinancing, including co-ops, condos, manufactured homes and Planned Unit Developments(PUD's).

Primary residences and investment properties are eligible up to 4 units.

Second homes are eligible only 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 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.

Debt to income (DTI) is determined by DU.

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.

Properties that have been 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 3- to 4- unit primary residences, second home co-ops and investment properties.

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DU Refi Plus
FANNIE MAE
DU Refi Plus™ Downsides Include:
No new subordinate financing (HELOCs or HELOANs)  
 
Existing HELOCs or HELOANs must be re-subordinated
Cannot pay off existing subordinate financing ( no cash out )
No ARMs with fixed terms less than 5 years
No balloon mortgages
No interest-only mortgages
No Texas 50(a)(6) mortgages
No My Community Mortgage (MCM) mortgages
No HomeStyle Renovation mortgages
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