DU REFI Plus

DU Refinance Plus Highlights

•All property types (including condos and co-ops) are eligible for refinancing under the DU Refinance Plus program.
•Primary residences and investment properties (1-4 units) are eligible for refinancing. Second homes are eligible for single-family homes only.
•DU Refinance Plus allows up to 105% LTV (certain restrictions apply).
•The minimum credit score of 580 is not required if the LTV is 80% or less.
•Under the DU Refinance Plus program, documentation may be limited to one current pay-stub (for salaried borrowers), a verbal verification of employment, and one year of federal income tax returns for commissioned or self-employed borrowers.
•In certain cases, new appraisal reports may not be required under the DU Refinance Plus program.

DU Refinance Plus Restrictions

•DU Refinance Plus will only allow limited cashout, that is, only 2% of the loan size or $2,000, whichever is less.
•No new subordinate financing will be allowed.
•Adjustable Rate Mortgages with fixed terms less than 5 years will not be allowed.
•Fannie Mae's My Community Mortgage program is not allowed.
•DU Refinance Plus does not allow balloon mortgages.
•Interest-only mortgages are not allowed under DU Refinance Plus.

DU Refinance Plus and Mortgage Insurance

DU Refinance Plus allows for some flexibility regarding Mortgage Insurance (MI) on loans that exceed 80% loan-to-value (LTV). The mortgage insurance benefits apply only to loans that are already guaranteed or owned by Fannie Mae. Since most housing markets have declined, the value of your home may be worth significantly less now than it was one or two years ago. Under the DU Refinance Plus program, an existing loan that has an LTV under 80% (with no current MI) can be refinanced into a new mortgage over 80% LTV and not require mortgage insurance. Additionally, when an existing loan has mortgage insurance coverage, the lender has the option of obtaining the same MI coverage already in effect, or obtaining the standard level of MI on the new refinanced mortgage.