Home Financing Info & Resources Refinance Relief Program

Refinance Relief Program - 105% LTV

Horn & Co. Financial is now offering the Home Affordable Refinance Relief Program for borrowers who would not normally qualify for a conventional refinance mortgage.


What is the Home Affordable Refinance Relief Program?
Originally announced by President Obama on February 17, 2009, the Home Affordable Refinance Program is geared towards helping customers that are current on their mortgage payments, but whose home value has declined to a point that may make them ineligible for traditional refinance products.  Program deadline is June 10, 2010.

How do I know if my current loan is eligible for this program?
In order to go through the qualification process to participate in this program, your loan must be owned by Freddie Mac or Fannie Mae, government sponsored enterprises of the United States federal government.

What are the benefits of this program?
For eligible borrowers, this program will offer the significant benefits below:

• A reduction in interest rate of the first lien mortgage.

• Replace an ARM (Adjustable Rate Mortgage), an interest-only, or a balloon mortgage with a fixed rate, fully amortizing mortgage.

• Lower monthly payments due to the decrease in interest rate.

What are some of the restrictions of this program?
Some of the restrictions for this programs as indicated below:

• Maximum LTV (Loan-To-Value) is 105%.

• Maximum DTI (Debt-To-Income) ratio is 45% (50% depending on new Principal & Interest amount and Job/Income Stability).

• Interest-only payment feature not allowed.

• Cannot have Mortgage Insurance on existing mortgage.

• Current or new loan cannot be Sub-prime loan, Alt-A, FHA, VA, or Rural Development Loan.

• Property must have same occupancy as original loan except change from second home or investment to primary occupancy is allowed.

• Cannot refinance from a fixed rate product to an ARM product.

 (Additional restrictions and guidelines may apply)

How can I check to see if my loan is with Freddie Mac or Fannie Mae?
You can go directly to Freddie Mac's website at freddiemac.com or to Fannie Mae's website at fanniemae.com and use their address look-up tool to see if your loan is owned by them.

What is the process of getting my loan refinanced under this program?
The first step into getting your loan refinanced under this program is to determine loan eligibility and to make sure you meet all program guidelines. Once you have done so, the process will be as follows:

• Submit application to participating lender for review and underwriting.

• Provide all required supporting documentation on assets and income.

• Order appraisal to determine value of property and LTV (Loan-To-Value).

• Open escrow with escrow and title company.

• Meet all conditions that may be set by lender.

• Lock interest rate with lender.

• Document signing with escrow company.

• Loan Funded.

What are the costs and fees involved?
Some of the costs involved in refinancing include any applicable Origination Fees, Lender Discount Points, Application Fees, Appraisal, Loan Process, and Escrow and Title charges. You will be presented with a Good Faith Estimate within 3 days of applying for your loan. By working with Horn & Co. Financial, you will be paying the minimum costs as we offer wholesale rates and fees to our clients.

How do I get started on refinancing?
In order to get started on refinancing, we recommend that you schedule an appointment for a personal consultation with one of our Loan Consultants.




Call us today at 415.861.7100 Ext. 100 or Contact us if you would like additional information on the Home Affordable Refinance Relief Program.