DU Refi Plus Program Helps Struggling Homeowners Refinance

The DU Refi Plus refinance was created under the Making Home Affordable Program, and can be advantageous for homeowners that currently find themselves underwater on their mortgage. The program allows some homeowners the opportunity to refinance at today's historically low interest rates with loan amounts as high as 125% of your home's appraised value. In many cases, the borrower may not even be required to have an appraisal done on their home.

There are a number of guidelines that must be followed to qualify for a DU Refi Plus mortgage, but the most important is that your loan currently be owned by Fannie Mae. Many homeowners make the mistake of thinking that because their mortgage statement does not specifically state "Fannie Mae", it must not be a Fannie Mae owned mortgage. This is not necessarily the case. The best way to find out if your loan is owned by Fannie Mae is by visiting the Fannie Mae website and searching for "loan lookup".

Once you have determined that your loan is owned by Fannie Mae, the next step is to contact a qualified mortgage professional that has experience with DU Refi Plus mortgages. A typical scenario for this type of mortgage is when someone puts down twenty percent when they bought their home, but because of the economic downturn their home has depreciated a substantial amount. The DU Refi program allows the borrower that originally put down twenty percent to refinance without having an appraisal completed and without having to pay mortgage insurance. Although this example is typical it is not the only scenario in which someone can benefit from a DU Refi Plus.

The Making Home Affordable Program also has another loan called the DU Refi. This program is available to a broader spectrum of homeowners, but can only be done through the lender currently servicing your loan. Homeowners that believe they may be underwater on their mortgage should contact a qualified mortgage professional to find out what options they have for refinancing.