High LTV Refinance Option

The high LTV refinance option provides refinance opportunities to borrowers with existing Fannie Mae mortgages who are making their mortgage payments on time but whose LTV ratio for a new mortgage exceeds the maximum allowed for standard limited cash-out refinance transactions.

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Overview

The high LTV refinance option is available for refinance applications received on or after Nov. 1, 2018. It replaces DU Refi Plus™ (and Refi Plus™ with manual underwriting), which will be retired in accordance with the Home Affordable Refinance Program® (HARP®) end date of Dec. 31, 2018.

Borrower Benefit

Borrowers must benefit from the refinance in at least one of the following ways:

  • Reduced monthly principal and interest payment.
  • Lower interest rate.
  • Shorter amortization term.
  • More stable mortgage product, such as moving from an adjustable-rate mortgage to a fixed-rate mortgage.

Features

  • Mortgage insurance (MI) must be transferred to the new loan. If MI is not in place for the loan being refinanced, it is not required for the new loan if all other eligibility requirements are met.
  • Simplified documentation requirements for employment, income, and assets.
  • Both DU and manual underwriting options are available to the same or a new servicer. Manual underwriting may be necessary in certain scenarios.

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