Still, this is very exciting news for those who are timely with their payments, want to refinance, but haven’t been able to take advantage of low rates due to valuation challenges.
Countrywide, which will soon be Bank of America Home Loans, is one of the first lenders nationally to market the new Homeownership Affordability and Stability Plan (HASP). Some call this “The Obama Plan.” This initiative is for borrowers who have demonstrated an acceptable payment history on their current mortgage but due to declining home values have been unable to take advantage of historically low interest rates to refinance or stabilize their payment.
Please read the rest very carefully. This will help many but not everyone.
THE GUIDELINES BELOW IS FOR CURRENT COUNTRYWIDE CUSTOMERS ONLY WHOSE LOANS ARE HELD BY FANNIE MAE AND FREDDIE MAC AS INVESTORS.
If you are not a Countrywide customer, contact your own bank and ask about your eligibility for HASP.
Here is a quick look at the highlights for the refinance piece of the plan:
- The maximum loan amount is $417,000 in Clark County.
- Your FIRST MORTGAGE cannot be upside down from the home's value by more than 105%. Your second mortgage may not count.
- The value of your home is NOT determined by an appraisal but by Fannie Mae and Freddie Mac’s automated systems. No appraisal is necessary.
- Your second mortgage does NOT count to determine your eligibility if that second mortgage is held by Countrywide or Bank of America. So let’s say your home is worth $200,000 today. You owe $210,000 on the first and the rate is 6.500%. You have a $70,000 second mortgage that’s held by Countrywide or Bank of America. This program allows you to refinance up to 105% of your first mortgage. This means you can refinance the first for $210,000 at close to today’s rates. The second mortgage will stay intact.
- If your second is with Countrywide or B of A, we will very likely re-subordinate our second mortgage to allow this refinance to happen.
- The investor on your loan has to be Fannie Mae or Freddie Mac.
- There is no cash-out. You cannot consolidate a first mortgage and a second mortgage.
- In this first phase, you are ineligible if you currently have mortgage insurance on your loan. If you bought your house using a first and second mortgages, you can still qualify.
- You are still eligible so long as you have no more than one late mortgage payment in the last 12 months. You may be permitted more than one late payment in the last 12 months on your Countrywide or B of A second mortgage.
- Your current loan cannot be VA, FHA, or a subprime loan.
- It's a streamlined loan. No income documentation and no appraisal. It’s a stated income loan. You won’t have to prove income again. You will sign a 4506-T however which is a form that allows the lender to obtain a copy of your tax return.
- Debt-to-income ratios may not matter if you are not increasing your current payment by more than 20%.
- There is no minimum credit score if your new payment is no more than 20% higher than your current one. 620 is the minimum if it’s 20% or more higher.
- Rates are slightly higher than current market but still very competitive.
- If you didn't have mortgage insurance before, you won’t have it now, regardless of your loan to value.
- Prepayment penalties on your current loan will be waived by Countrywide and Bank of America to make this program work for you if you are eligible.
If you are a Countrywide customer, give Aaron a call or send him an email to determine your eligibility. Please have your loan number ready when you call or email it to him so he can research your eligibility for you.
If you are interested in this program and are not a Countrywide customer, please contact your bank and ask them about their participation in HASP.
Aaron Gordon can be reached at:
Countrywide Bank, FSB
Cell: (702) 283-2333
Office: (702) 304-8900
Secure eFax: 1-866-905-7922
10190 Covington Cross Drive #190
Las Vegas, NV 89144
Email: aaron_gordon@countrywide.com
Web: http://countrywidelocal.com/aarongordon
Existing Wells Fargo clients need to call their lender and ask if their loan is a FANNIE MAE or a FREDDIE MAC loan. If they have a NON-Wells Fargo loan FREDDIE MAC insured loan- then they must go back to their existing lender to do the refinance loan. If they have a FANNIE MAE loan, then they can go to any lender that they want to do the refinance.
The important thing to remember is that relief is finally coming soon for existing homebuyers that are underwater!
Please feel free to contact Paula Clark at the following:
Wells Fargo Home Mortgage
8337 West Sunset Road, Suite 270
Las Vegas, NV 89113
Office: (702) 868-3920
Cell: (702)277-3554
eFax: 1-866-609-2470
Email: paula.l.clark@wellsfargo.com
Web: http://paulalclark.com/
