A couple of days ago I caught on CNN a piece of the interview with the newly appointed housing czar Shaun Donovan, and he mentioned that for anyone to qualify for this plan they must be of an LTV 80-105 … here is a quote:
“Also, borrowers with little or no equity in their homes who are on time with their payments could be eligible to refinance to take advantage of the current low interest rates, which hover around 5%. The plan lifts the guideline that borrowers must have at least 20% equity to refinance, allowing those with loans as large as 105% of their home’s value to qualify. This is designed to help people who have seen their equity eaten away by falling home prices.”
Then, the reporter commented that if that’s the case,some regions in the US (e.g. California, Nevada, Arizona, Florida….etc) due to low equity (up-side down)
