The Making Home Affordable included loan to values of up to 125% for the DU refinance plus program. Fannie Mae released an update to their underwriting system early in September to allow for these scenarios.Here is a link to the announcement:https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0926.pdfCurrently I have not seen these scenarios on any rate sheets. The other facts you must remember is that lender participation is optional. There are many lenders out there currently who will not do the 105% maximum as it stands today. Also, the risk based pricing (loan level pricing adjustments charged by Fannie Mae and Freddie Mac) for the additional layer of risk involved (due to the loan amount being higher than the current appraised value) will have higher rates associated with them.I feel that this enhancement may not have the benefit that everyone hopes due to the possible higher rates they will have.

Something else to consider is that this program is only available to borrowers whose loans are *already owned* by either Fannie Mae or Freddie Mac. It is true that many lenders will not so these loans, or they will only if they are currently servicing your loan. It makes sense of course, that Chase, for example, wouldn't be rushing out to take your loan off of a competitors hands to put in their portfolio at 105% LTV. The first step is to go to www.fanniemae.com or www.freddiemac.com and look for the link "does Fannie Mae (freddie mac) own my mortgage?" If they do, then you just need to find a participating lender.