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 Governor Martin O'Malley, Lt. Governor Anthony Brown, Secretary Raymond Skinner Homesaver Refinance Mortgage Program

HOMESAVER REFINANCE MORTGAGE PROGRAM: Fact Sheet and Underwriting Guidelines
The Community Development Administration’s (CDA) Homesaver Refinance Mortgage Program provides a refinancing option to Marylanders who have sub-prime or exotic mortgages and are experiencing difficulties as a result of mortgage default, low credit scores and/or a mortgage greater than the current value of their home. The Maryland Housing Fund (MHF), the State’s mortgage insurance agency, is the exclusive mortgage insurer for this program.
Overall Eligibility
  • All judgements/liens against the property must be included in the refinance
  • The property must be the borrower’s primary residence.
  • Mortgage(s) may not be more than two months past due at the time of application
Income Limits Click here for: Income limits
Maximum Appraised Value Click here for: Appraisal limits. Current appraised value of the home must not exceed the “Maximum Appraised Value” limits
Maximum Loan-to-Value (LTV) and Combined Loan-to-Value (CLTV)
  • LTV: 105% (MHF’s 2.75% upfront mortgage insurance premium may be financed in the mortgage)
  • CLTV: 110% (with all second mortgages, including forgivable grants)
Minimum Credit Score 580
Maximum Debt-to-Income (DTI) Ratio Not to exceed 50%.
Co-Signers Permitted
Mortgage Products Offered 30- and 40- year amortizing loans only
Points may be rolled into the principal amount of the refinancing
Current Interest Rates
(subject to change)
  2 Points 0 Points
30-Year Amortizing
7.250% (7.565% APR)
7.500% (7.609% APR)
40-Year Amortizing
7.375% (7.652% APR)
7.625% (7.722% APR)
Downpayment/Closing Cost Assistance Not available
Closing Costs All closing costs, including pre-payment penalties and CDA’s points, may be rolled into the principal amount of the refinancing.
Mortgage Insurance Maryland Housing Fund (MHF) only.
Asset Test Must be performed for borrowers whose liquid assets equal or exceed 20% of the current appraised value.
Processing Loans are processed through an MHF-approved Lender. Manual underwriting is required.
Counseling Required for all borrowers
Home Inspection Not required.
Cash Out Option Not available; any excess funds to be applied as a principal curtailment.
Future Subordinations Not permitted
MHF Approved Lenders

Click here for the MHF Approved Lenders approved to originate Homesaver Refinance Program mortgages.

 

revised 7/3/08

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