Underwater Mortgage: Which Refinancing Program are You Eligible for?

Are you all caught up with your mortgage payments? If yes lets move on to the step.

If not. You have a VA loan proceed to the step. If not a VA loan holder, get in touch with your mortgage servicer. At present you are not qualified, for refinancing through programs meant for borrowers. Nonetheless you might be eligible for a loan modification or another program. Typically your current servicer is the company where you last made your mortgage payment.

Up; Who is the entity behind your mortgage?

Firstly determine whether Fannie Mae or Freddie Mac backs your loan before proceeding to the step.
Most home loans are supported by these government sponsored enterprises (GSEs).
Click on the link to check if Fannie Mae or Freddie Mac owns or guarantees your loan.

For loans supported by the Federal Housing Administration (FHA);

The FHA supports loans that are not already backed by Fannie Mae and Freddie Mac.
You likely learned about having an FHA loan during the loan process and, at closing.

If you’re not sure whether you have an FHA loan here’s how to check;

1. Review your statement for a mortgage insurance premium (MIP). If its listed that indicates an FHA insured loan.

2. Look at your closing documents, for a HUD1 form. Check the corner of the first page for a HUD case number in the format 000 0000000 000. Having this number means you have an FHA insured loan. For loans issued after October 15 verify the loan type on your Closing Disclosure form.

If theres still uncertainty contact your lender or servicer.

For Veterans Affairs (VA) loans they are exclusively for veterans. Represent a small percentage of home loans granted. You would typically be notified during the loan process and at the closing about having a VA loan.

United States Department of Agriculture (USDA) home loans cater to individuals in specified areas with, to low incomes.
You probably received information, about having a USDA loan during the loan process. When you closed your loan.

If you are unsure about who’s backing your mortgage reach out to your loan servicer.

Step 3; Identify The Refinancing Program That is Relevant to Your Loan

If your loan is supported by Fannie Mae or Freddie Mac;
Program; Home Affordable Refinance Program (HARP)

Basic eligibility criteria;

Your existing loan must have been transferred to Fannie or Freddie before June 1 2009.
You should not have completed a HARP refinance since June 1 2009.
You should not have had any payments in the 6 months.
You should not have had than one 30 day payment in the past 7 12 months.
Your current loan must fall within the conforming loan limits.

Next steps;

Reach out to your loan servicer to confirm if you qualify.
Compare mortgage rates and fees from lenders. Be sure to inquire with your servicer and explore rates on their platform.

Program; FHA Streamline Refinance

Basic eligibility guidelines;

You should not have had any payments, in the 12 months.
You must not have completed an FHA Streamline Refinance in the 6 months.
Reach out to your loan servicer to confirm if you qualify.
Compare lenders to find the mortgage rates and fees.
Ensure you check with your servicer and look for up, to date rates on the Interest Rate Reduction Refinancing Loan (IRRRL) program.

General eligibility criteria;

You should refinance into a loan with an interest rate unless you are switching from an adjustable rate mortgage (ARM) to a fixed rate mortgage.
Compare mortgage rates and fees to get the competitive options and verify with your current servicer.
Program; Single Family Guaranteed Rural Refinance Pilot