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The Andre Shambley Group Blog

By Andre' Shambley | Agent in Sunny Isles Beach, FL

"Desktop Underwriter (DU) Refi Plusâ„¢": Fannie Mae loosens the rules for homeowners seeking lower monthly payments

Fannie Mae has introduced "Desktop Underwriter (DU) Refi Plus™", a new program designed to reignite the mortgage industry by streamlining the refinance process for potentially millions of Americans.  

More specifically, Fannie Mae allows homeowners to refinance up to 105% of the current value of their home and will accept borrowers with credit scores below their current 580 requirement. The reduced documentation requirement results in borrowers submitting a single, current pay stub, rather than the traditional two.

(DU) Refi Plusâ„¢, which began earlier this month according to President Obama the goal of the Home Affordable Refinance, is to "provide access to low-cost refinancing for responsible homeowners suffering from falling home prices."


This plan was announced by the Treasury Department in Feburary and additional details were released in March.  The first step is to determine whether either Fannie or  Freddie guarantees your mortgage.  To do that, visit these sites:



Once you determine that your mortgage is held by one of those two, you must also ensure that you have not been more than 30 days late on your mortgage during the past 12 months.  If you meet both of those criteria, then you are eligible to apply for the program.  Remember that just meeting these criteria do not guarantee that you will be able to participate in the program as there are a number of other restrictions in place

The good news is that you do not have to go to your current servicer for help!

Here are some of "Desktop Underwriter (DU) Refi Plusâ„¢" program highlights:

1.  Refinance must be a Fannie Mae loan to a Fannie Mae loan

2.  Allow up to 105% LTV (No maximum LTV)

3.  No minimum credit score

4.  May not require a full appraisal

5.  All property types permitted

6.  All occupancy types permitted (owner occupied, 2nd home, and Investment properties)

7.  No seasoning required

8.  No limit to the amount of mortgages

9.  Limted income documentation (1 current paystub and a verbal VOE) Self - employed (1 yrs tax return)

Here are some things to be aware of the new program:

1.  Limited Cash - Out refinance only

2.  Only purchase 2nd liens are allowed to be refinanced. This means if you have a HELOC or 2nd mortgage that wasn’t part of the original purchase contract you won’t be able to include in the refinance transaction.  You will have to get a subordination.

3.  Ineligible Existing Mortgages - Reverse, 2nd Mortgages, Governement (FHA, VA)

4.  You must still qualify with income and show you can afford the new payment


When it comes to choosing professionals to assist you with your real estate needs...Experience is Priceless!  Andre’Shambley&Miami’s Best REALTOR® Team, The Keyes Company, 305-396-9106. MiamiBestTeam@AOL.com. www.OnePlaceOpenHouse.com

Ready to refinance or looking for a better rate?  For your complimentary rate quote visit Jacinta Shambley, APEX Lending, Inc. JShambley@ApexLending.com.  www.JShambley.ApexLending.com      


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