Can I refinance if my house is underwater?

You won’t be able to refinance your loan if you’re underwater. Most lenders need you to have some equity in your property before you refinance. You might also have difficulty selling your home if your loan is underwater.

Can you refinance without Fannie Mae?

Homeowners who don’t currently have a Fannie Mae loan might qualify for a refinance through the FHA. The FHA mortgage refinance amount is capped at 97.5 percent of the home’s value. Or, in mortgage lingo, the maximum loan-to-value is 97.5 percent.

What can you do if your mortgage is underwater?

What Are Your Options if Your Mortgage Is Underwater?

1. Option 1: Stay in your home and work to build more equity.
2. Option 2: Refinance your mortgage.
3. Option 3: Sell your house and use your savings to pay the amount you still owe.
4. Option 4: Sell your home through a short sale process.
5. Option 5: Foreclose on your home.

Do all mortgages go through Fannie Mae?

Fannie Mae is happy to buy mortgages from lenders — but not every mortgage. For Fannie Mae and Freddie Mac to be able to re-sell loans, they need to be considered safe investments. That means each mortgage must meet certain requirements or “guidelines.” Fannie Mae guidelines run more than 1,200 pages.

What happens if you owe more than your house is worth?

Negative equity happens when you owe more on your mortgage than what your home is worth. There are a few factors that can cause this, including falling home values and high-interest loans. Negative equity can make it difficult to sell a home or even refinance your loan.

How can I refinance my upside down mortgage?

Some homeowners in these areas are finding their loans are upside-down, or have a mortgage that exceeds the value of the home.

1. Contact your servicer, the company to which you make your payments, and ask who owns your loan.
2. Request a quote for the refinance program for which your loan is eligible.

Why would Fannie Mae buy my mortgage?

Fannie Mae buys mortgage loans from lenders to replenish their funds so the lenders can continue making new mortgage loans. That helps keep affordable financing available for homebuyers in the market for a home.

Does Fannie Mae require a 2 year work history?

Fannie Mae generally requires lenders to obtain a two-year history of the borrower’s prior earnings as a means of demonstrating the likelihood that the income will continue to be received. For additional information, see B3-3.2-01, Underwriting Factors and Documentation for a Self-Employed Borrower.

Can you refinance if you owe more than your house is worth?

Borrowers can refinance up to 125% of the home’s value. To qualify for HARP, Freddie Mac or Fannie Mae must own your loan, you must not have missed any payments in the past year, and you may have to meet some credit score requirements.