Trying To The Understand The Forbearance Process
This resource can help you get the facts if you have been impacted by COVID-19.View timeline
Income Limits For Calhfa Home Buying
CalHFA assists low and moderate-income homebuyers in the realization of their goal of homeownership in California. CalHFA offers low interest rates to homebuyers who meet the income for the County in which they wish to purchase. Borrowers are to contact an approved CalHFA Lender for complete program details.
Home Equity Line Of Credit Wholesale Product Offering
Available through our broker partners, HELOCs are an opportunity for eligible homeowners to leverage the equity they have in their home to manage debts and expenses or use to make other investments. By borrowing against the available equity in the property, the home is used as collateral for the line of credit.
Advantages
- Eligible borrowers can access $20,000 to $400,000 of their homes equity as a line of credit
- Repayment periods for all draws include either 5-, 10-, 15- or 30-year repayment term, and a 2- to 5-year draw period, depending on the number of years selected for the repayment period
- No pre-payment penalty
- Depending on borrower credit attributes and property eligibility, a borrower may receive same-day initial approval, and closing and funding within 5 business days of final approval
- Available on single-unit owner-occupied properties, single-unit second homes, and single-unit investment properties
- 100% digital lending platform experience from application to closing
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Va Loans For Veterans
Veterans and active duty service members can make home ownership a reality through the VA Loan Program. This program has low down payment options for purchase, competitive rates and a streamlined refinance option that reduces documentation needed to close the VA Interest Rate Reduction Refinance Loan . The IRRRL is a longstanding program to honor veterans this offering allows for qualifying flexibilities and other options not offered in any other loan program.
Advantages
Review Your Loan Documents
You might be able to find out who backs your mortgage loan by reviewing your loan paperwork.
- FHA-insured loan lookup. Look for an FHA case number on your mortgage contract. Sometimes, though, loans lose their FHA-insured status. Call your servicer or HUD’s National Servicing Center at 877-622-8525 if you have questions about your loan’s status. You can also check your billing statement to see if you pay a mortgage insurance premium . “MIP” is what FHA calls its mortgage insurance. If you’re paying MIP, then you have an FHA-insured loan.
- VA-guaranteed loans. A VA-guaranteed loan contains specific language in the note and mortgage that identifies it as a VA loan. Also, fees paid to the VA will be shown in the closing documents.
- USDA loans. Borrowers with mortgages directly extended by the USDA’s Rural Housing Service should be aware that they have this kind of loan. But homeowners with privately serviced RHS-guaranteed loans might not know about their loan’s status.To determine if you have an RHS-guaranteed loan, ask the servicer or check your closing documents from when you took out the loan. You can get more information about these kinds of loans on the USDA Rural Development website.
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What This Could Mean For You
Integrating the Loan Lookup API within your customer-facing applications can influence lender decisioning, workflows, and other enhancements that will deliver immediate value to your customers. The Loan Lookup API reduces steps and increases efficiency by eliminating activities .
A signed integration agreement is required. Visit the Developer Portal to get started.
Lower Fees And Credit Scores
All major mortgage investors such as Fannie Mae, Freddie Mac, the FHA and the VA have specific fees that are charged based loan amounts and different risk factors.
With Home Possible , the lowest median FICO® Score to qualify is 580. However, if your median is 680 or better, there are no additional pricing adjustments on the loan. If the score is below 680, theres a maximum price adjustment of 1.5% of the loan amount.
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Who Is Eligible For Refinow Financing
Eligible borrowers must have
- A Fannie Mae-backed mortgage secured by a 1-unit, principal residence
- A current income at or below 100% of the AMI
- Not missed a mortgage payment in the past six months, and no more than one missed mortgage payment in the past 12 months and
- A mortgage with a loan-to-value ratio up to 97%, a debt-to-income ratio of 65% or less, and a minimum 620 FICO score.
Where Can I Find The Area Median Lookup Tool
The Area Median Lookup Tool provides lenders and other housing professionals with a quick and easy way to look up HomeReady income eligibility by area, property address, or Federal Information Processing Standards code. Refer to the Area Medium Income Lookup Tool Tips for more information.
Note: This service is provided for the sole purpose of showing the applicable Area Median Income for each applicable census tract. Lenders may use the AMI limits for purposes of determining income eligibility for RefiNow, HomeReady or other loans that have AMI requirements.
Each Lender must determine borrower and loan eligibility in accordance with the Selling Guide and its Lender Contract. Nothing in this service is intended to vary or modify any of Lender’s obligations under its Lender Contract.
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Are There Other Preferential Government Mortgage Programs
Home Possible and HomeReady are two options for government-sponsored mortgage programs. However, there are also other options from the FHA, USDA and VA.
A major benefit of FHA loans is that they only require a median 580 credit score if you have a sufficiently low debt-to-income ratio .
USDA loans offer no down payment if you live in a rural area with a household income of under 115% of the area median. This can be very attractive, depending on where you want to live. Rocket Mortgage doesnt offer USDA loans at this time.
Finally, VA loans are available for eligible veterans, reservists, members of the National Guard, active-duty personnel and qualified surviving spouses. This is no down payment required with VA loans.
Search For Your Mortgage Holder Online
You might be able to find out who owns your mortgage loan online.
- MERS mortgage lookup. If your loan is in the MERS system, you might be able to determine who owns or backs your loan by calling MERS or running a check on the MERS website.
- Fannie Mae loan lookup tool. Check the Fannie Mae lookup tool online to find out if Fannie Mae owns your loan. Loans are often sold to this government-sponsored enterprise.
- Is my loan owned by Freddie Mac? Also, check the Freddie Mac loan-lookup tool to find out if Freddie Mac owns your loan. Like with Fannie Mae, many loans are sold to Freddie Mac.
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Fannie Mae And Freddie Mac Mortgages
Neither Fannie Mae nor Freddie Mac directly provide mortgages to homebuyers. Instead, youll get your loan from a mortgage lender, such as a bank, credit union or online lender, which can then choose to sell the loan to one of these GSEs, assuming the loans eligible. As of 2020, Fannie Mae and Freddie Mac owned 62 percent of conforming loans.
Are There Freddie Mac Programs For Low
Freddie Mac and Fannie Mae have new refinance programs to help low-income borrowers with higher DTIs to refinance and take advantage of lower rates and the opportunity to lower their payment. Theyre called Refi PossibleSM and RefiNow1, respectively.
There are several requirements:
- The owner/investor of your loan has to be Fannie Mae or Freddie Mac. You can check this by using Fannie Mae’s loan lookup tool or this utility from Freddie Mac.
- This is for low-income borrowers. You cant make more than 80% of the area median income.
- You need to have a DTI ratio of 65% or less. This is more flexible than other conventional programs which require no more than a 50% DTI ratio.
- You have to be current on your mortgage. For the purposes of these loan options, that means not having a 30-day late payment in the last 6 months and only one in the last year.
- This must be a 1-unit primary residence. No multiunit, vacation or investment properties are allowed.
- Your loan has to be a certain age. The loan has to be more than a year old but no more than 10 years old.
- This can only be used to lower your rate and/or make a term change. You cant take cash out.
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Fannie Maes Refinow Program
Starting June 5, 2021, Fannie Mae has been offering low-income mortgage holders a new refinance option through a program called RefiNow, meant to reduce their monthly payments and interest rates. To be eligible, homeowners must be earning at or below 100% of their area median income .
This program is intended to help more homeowners refinance by removing some of the barriers of the traditional refinancing process, improving affordability, and promoting sustainable homeownership. Lower-income borrowers typically refinance at a slower pace than higher-income borrowers, potentially missing an opportunity to save on housing costs, says Malloy Evans, executive vice president of single family business at Fannie Mae.
If homeowners are unsure about whether or not Fannie Mae owns their mortgage, they can visit Fannie Maes Loan Lookup Tool. The RefiNow program offers several benefits for homeowners. First, it requires a reduction in the homeowners interest rate by a minimum of 50 basis points and a savings of at least $50 in the homeowners monthly mortgage payment. Second, Fannie Mae will provide a $500 credit to the lender at the time that the loan is purchased if an appraisal was obtained for the transaction, and this credit must be passed on from the lender to the homeowner.
To qualify for RefiNow, a homeowner must meet these qualifications:
How Does A Covid
Fannie Mae is offering repayment options for homeowners who missed their mortgage payments due to a financial hardship related to COVID-19. In fact, earlier this year, Fannie Mae announced a new COVID-19 payment deferral option.
This payment option defers the amount you owe to the end of your loan term . You will have to pay the missed amount when you make your last loan payment or pay off the balance of the loan .
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What Would Happen If Fannie Mae Didn’t Exist
It’s hard to say what would happen if Fannie Mae didn’t exist. Lenders currently focus most of their mortgages on terms set by Fannie Mae so they can be purchased on the secondary mortgage market. If Fannie Mae didn’t exist, we would possibly see laxer requirements on mortgages purchased by non-government entities on the secondary mortgage market. Or we might see lenders faced with liquidity issues once their main purchaser of mortgages is out of the industry. Those lenders may make it harder for people to get mortgages if they don’t have the capital to hold the debt of more mortgages.
To Make Sure Your Servicer Gives You Accurate Information About Loss Mitigation Options
Different backers offer various loss mitigation options to borrowers. Your options often depend on what entity, like FHA, VA, USDA, Fannie Mae, or Freddie Mac, owns or guarantees your loan, and you probably have choices. For example, you can get a CARES Act forbearance if you have a federally backed loan, such as an FHA, VA, USDA, Fannie Mae, or Freddie Mac loan. Different investors offer various foreclosure alternatives, too.
But servicers don’t always give accurate information when telling you about what foreclosure alternatives are available. So, you need to know who owns or guarantees your loan to know what options might be available to you. Learn what options are generally offered for your type of loan and be ready to ask your loan servicer about them.
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Does Freddie Mac Home Possible Require Home Buyer Education
Homeownership education is required when all clients on the loan are first-time home buyers. Clients can get this locally through any homeownership education program that meets the standards of the National Industry Standards for Homeownership Education and Counseling. Alternatively, there are a couple of online homeownership education providers that you can use as well in ReadyNest and .
Benefits Of Refinow & Refi Possible Programs
To ensure low-income homeowners benefit from these new offerings, lenders have some requirements they must meet when completing these refinances:
- The refinance must result in a savings of at least $50 per month on the borrowers mortgage payment.
- There must be a reduction of at least 0.50%to the borrowers interest rate.
Additionally, borrowers can benefit from an up to $500 appraisal credit if theyre not already eligible for an appraisal waiver.
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The Bottom Line: Freddie Mac Home Possible Is A Way To Make Homeownership Possible
Freddie Macs Home Possible is helping low-income borrowers get a mortgage at a lower cost. Fannie Maes HomeReady program is nearly identical. In order to qualify, youll need to make no more than 80% of the area median income. There are also similar programs available if youre looking to refinance with a lower income and higher DTI ratio.
If youre ready to look into your loan options, you can apply online today.
1 Freddie Mac and Fannie Mae have adopted a new refinance option for loans to borrowers with incomes at or below 80% of area median income, and you may be eligible to take advantage of this program. If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under this refinance option. You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:
- Freddie Mac Loan Look-Up Tool or
- Fannie Mae Mortgage Loan Lookup
Take the first step toward the right mortgage.
Apply online for expert recommendations with real interest rates and payments.
Fannie Mae And Freddie Mac: Overview
In 1938, the government created Fannie Mae, or the Federal National Mortgage Association, amid the struggles of the Great Depression. The goal of Fannie Mae was to create a more reliable source of funding for homebuyers, opening doors for more Americans, figuratively and literally.
Freddie Mac, short for the Federal Home Loan Mortgage Corporation, came on the scene through an act of Congress in 1970, with a similar purpose. Both Fannie Mae and Freddie Mac now operate under the conservatorship of the Federal Housing Finance Agency .
Fannie Mae and Freddie Mac help facilitate access to long-term, fixed-rate mortgages with installment payments. They do this by buying mortgages from banks and other lenders, giving the lenders more capital to continue creating loans for more borrowers. Fannie Mae and Freddie Mac typically package the loans they buy into mortgage-backed securities in the secondary mortgage market.
Both GSEs played a role in the Great Recession. In the years leading up to the housing market collapse, they backed or owned numerous subprime mortgages. When the housing bubble burst, economic pressures and large losses led to the need for the government to step in with bail-out funding. As a result, Fannie Mae and Freddie Mac were able to help usher the housing market toward recovery.
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If Am A Tenant Is Financial Assistance Available
On August 26, 2021, the US Supreme Court struck down the Centers for Disease Control and Prevention eviction moratorium. With this decision, many renters who were protected by the CDC order may be subject to eviction for nonpayment of rent. If you are a tenant and are struggling financially due to COVID-19, visit consumerfinance.gov/renthelp for more information on what assistance is available, or call our Disaster Response Network directly at , where youll get tips on communicating with your landlord and help navigating the rental assistance application process and more.
How To Get Help
If you think you might have trouble making a mortgage payment your first call should be to your mortgage servicer . They may be able to arrange temporary mortgage assistance options, including a mortgage forbearance plan.
No matter what the future brings, Fannie Mae will be here to help, providing you with the reliable information you need about forbearance plans and other kinds of mortgage assistance.
If youre a homeowner who is financially impacted by COVID-19, youre not alone. Our Loan Lookup tool can help you see what free resources are available to you.
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What Are The Benefits
- This refinance option requires a reduction in the homeowners interest rate by a minimum of 50 basis points.
- RefiNow provides a $500 credit from Fannie Mae to the lender at the time the loan is purchased if an appraisal was obtained for the transaction. The lender must pass the credit to the homeowner.
Is Selling My Home An Option
COVID-19 has caused financial impacts for many households. If this has happened to you, and it has impacted your ability to pay your mortgage, selling your home might be an option youre considering. When your home is worth more than you owe on your mortgage and other debts secured by the property, the difference is called home equity. Selling a home with equity is an option if you have a financial hardship and can no longer afford the home and can be an alternative to foreclosure. Talk with your servicer as you decide if this is an option you want to pursue.
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