Here’s a bit of good news from the Mortgage Bankers Association. They have reported that last week there was a slight increase in the amount of mortgage applications received by 11%. According to the report, application submitted for refinancing has gone up to 15%, while loan applications for home purchases has gone up to 6.7%. Now despite all of this good news, rising unemployment and the continued global economic issues, will more than likely keep the housing industry on a slow rebound.
Fannie Mae and Freddie Mac are now able to allow up to 125% loan-to-value for existing loan refinances under the Home Affordable Refinance Program. The old limit was 105% loan-to-value. This move should help out borrowers who made their payments on time but were unable to refinance and take advantage of lower rates due to declining values on their homes. In addition the loan must be Fixed and fully amortized for >15 years to a maximum of 30 years. This is for manually underwritten loans only, and Fannie Mae is determining if the desktop underwriting engine should allow loan-to-value ratios above 105%. For more information please visit www.makinghomeaffordable.gov or call 1-800-7FANNIE. For Freddie Mac visit https://www.freddiemac.com/corporate.
