The government announced changes to its HARP program November 15, 2011. If you're underwater on your conforming, conventional mortgage, you may be eligible to refinance without paying down principal and without having to pay mortgage insurance. This post includes the latest changes as rolled out by the Federal Home Finance Agency on October 24, 2011, and as confirmed by Fannie Mae and Freddie Mac on November 15, 2011.
I spoke with my local lenders in Orlando, and they will be able to soon roll out the new HARP program guidelines to help underwater homeowners who have been current with their payments. One lender said they expected to close new HARP loans in March. If you are underwater on your loan and are current on your payments, it is time to do your homework and find a lender to help you. I hope the following information will help. If you call your current lender and he does not know about the new HARP guidelines, don't give up. You can refinance with any eligible lender. *Eligibility criteria are for guidance only. Contact your mortgage servicer to see if you are eligible for HARP.
The Home Affordable Refinance Program is not meant to save a home from foreclosure. It's meant to give underwater homeowners a chance to refinance without paying PMI. If you need foreclosure help, call your current loan servicer immediately. Here are some important details of the government's new 2011 HARP refinance program. ** *Eligibility criteria are for guidance only. Contact your mortgage servicer to see if you are eligible for HARP.**
The Home Affordable Refinance Program is not meant to save a home from foreclosure. It's meant to give underwater homeowners a chance to refinance without paying PMI. If you need foreclosure help, call your current loan servicer immediately. Here are some important details of the government's new 2011 HARP refinance program. ** *Eligibility criteria are for guidance only. Contact your mortgage servicer to see if you are eligible for HARP.**
What Is HARP? HARP was set up in April 2009 to help homeowners refinance. The government calls it HARP, for Home Affordable Refinance Program. Other names for the HARP program are the Making Home Affordable plan, the Obama Refi plan, DU Refi +, and Relief Refinance.
In order to be eligible for the HARP refinance program :
- Your loan MUST be backed by Fannie Mae or Freddie Mac.
- Your current mortgage must have a securitization date prior to June 1, 2009
- You must be current on the mortgage at the time of the refinance, with a good payment history in the past 12 months.
- And, finally, you may not have used the HARP mortgage program before -- only one HARP refinance per mortgage is ever allowed.
If you meet these four criteria, you may be HARP-eligible. If your mortgage is FHA, USDA or a jumbo mortgage, you are not HARP-eligible.
How do I know if Fannie Mae or Freddie Mac has my mortgage? You can use the look-up tools in the Fannie Mae and Freddie Mac websites. Check Fannie Mae's website first because Fannie Mae's market share is larger. If no match is found, then check Freddie Mac website. Your loan must appear on one of these two sites to be eligible for HARP. If you have a Fannie Mae or Freddie Mac, make a note of that so that you can give that information to your lender when you apply for your Harp Refinance.
What if neither Fannie Mae nor Freddie Mac has a record of my mortgage? If neither Fannie nor Freddie has record of your mortgage, your loan is not HARP-eligible. But, you may still be eligible for a "regular" refinance to lower rates. Speak with your local mortgage broker. Or, if your mortgage is insured by the FHA, the FHA Streamline Refinance helps underwater homeowners, also.
Am I eligible for the Home Affordable Refinance Program if I'm behind on my mortgage? No. You must be current on your mortgage to refinance via HARP.
Will the Home Affordable Refinance Program help me avoid foreclosure? No. The Home Affordable Refinance Program is not designed to delay, or stop, foreclosures. It's meant to give homeowners who are current on their mortgage payments, and who have lost home equity, a chance to refinance at today's low mortgage rates.
I am extremely far underwater on my mortgage. Can I use HARP? Yes, you can. All homes -- regardless of how far underwater they are -- are eligible for the HARP program. There is no loan-to-value restriction under the HARP mortgage program so long as your new mortgage is a fixed rate loan with a term of 30 years or fewer.
The new HARP mortgage program specifically has no loan-to-value restriction so that homeowners in Florida, California, Arizona and Nevada can take advantage of it. HARP is now unlimited LTV for fixed rate loans with 30-year terms or less. Only fixed rate loans get the unlimited LTV treatment. However, If you use an adjustable-rate mortgage (an ARM), your loan-to-value is capped at 105%.
What's the biggest mortgage I can get with a HARP refinance? HARP refinances are limited to your area's conforming loan limits. In most cities, the conforming loan limit is $417,000. However, there are some cities in which conforming loan limits are as high at $625,500. You can look up your area's conforming loan limits in the Fannie Mae Conforming Loan LimitsTable.
I put down 20% when I bought my home. My home is now underwater. If I refinance with HARP, will I have to pay mortgage insurance now? No, you won't need to pay mortgage insurance. If your current loan doesn't require PMI, your new loan won't require it, either.
I pay PMI now. Will my PMI payments go up with a new HARP mortgage program? No, your private mortgage insurance payments will not increase. However, the "transfer" of your mortgage insurance policy may require an extra step. be sure to remind your lender that you're paying PMI to help the refinance process move more smoothly.
Do I have to HARP refinance with my current lender? No, you can do a HARP refinance with any participating mortgage lender.
Will my home require an appraisal with the HARP refinance mortgage program?. Although your home's value doesn't matter for the HARP mortgage program, lenders will run what's called an "automated valuation model" (AVM) on your home. If the value meets reliability standards, no physical appraisal will be required. Your lender may choose to commission a physical appraisal anyway -- just to make sure your home is sound.
Can I do a cash-out refinances with HARP refinance? No, the HARP mortgage program doesn't allow cash out refinance. Only rate-and-term refinances are allowable.
Can I include my closing costs with a HARP? Yes, mortgage balances can be increased to cover closing costs in addition to other monies due at closing such as escrow reserves, accrued daily interest, and a small amount of cash. In no cases may loan sizes exceed the local conforming loan limits, however.
Can I refinance a second/vacation home with HARP ? Yes, you can refinance an second/vacation property with HARP, even if the home was once your primary residence. The loan must meet typical program eligibility standards.
Can I refinance an investment/rental property with HARP mortgage program? Yes, you can refinance an investment/rental property with HARP, even if the home was once your primary residence. You can refinance a home on which you're an "accidental landlord" via HARP. The loan must meet typical program eligibility standards.
I rent out my old home. Does HARP apply for an investment property now? Yes, you can use the HARP Refinance program for your former residence -- even if there's a renter there now.
Are condominiums eligible for HARP refinancing? Yes, condominiums can be financed on the HARP refinance program.
Can I consolidate mortgages with a HARP refinance? No, you cannot consolidate multiple mortgages with the HARP refinance program. It's for first liens only. All subordinate/junior liens must be resubordinated to the new first mortgage.
I am unemployed and without income. Am I HARP-eligible? Yes, you do not need to be employed to use the HARP mortgage program. HARP applicants do not need to be re-qualified unless their new principal + interest payment increases by more than 20%. If the new payment increases by less than 20%, or falls, there is no requalification necessary.
I am now divorced. I want to remove my ex-spouse from the mortgage. Can I do that with HARP? Yes. With HARP, a borrower on the mortgage can be removed via a HARP refinance so long as that person is also removed from the deed; and has no ownership interest in the home.
What are the HARP program's mortgage rates? Mortgage rates for the HARP mortgage program are the same as for a "traditional" refinance. There is no "premium" for using the HARP program.
Is there a minimum credit score to use the HARP program? No, there is no minimum credit score requirement with the HARP mortgage program, per se. However, you must qualify for the mortgage based on traditional underwriting standards.
My original mortgage was a stated income loan. Will my income be verified with a HARP refinance? No, your income will not be verified via the HARP refinance program unless your new principal + interest payment increases by more than 20 percent. If your new principal + interest payment increases by less than 20%, or falls, there is no income verification necessary.
When does the HARP program end? If you are HARP-eligible, you must close on your mortgage prior to January 1, 2014.
Do I have to refinance my mortgage with my current lender? In most cases, no. You can do a HARP refinance with any eligible lender you want.
