Home Affordable Refinance (HARP 2)
Serving: Atlanta | Georgia | Florida
Home Affordable Refinance Program | DU Refi Plus | HARP II Refinance – Created to Expand Refinance Options for Underwater Homeowners, Expanded By Obama in 2011 and Soon to Be Expanded Again in 2013 – Has Helped Hundreds of Thousands of American Homeowners Save!
What Is a HARP Refinance?
Originally created in April 2009, the Home Affordable Refinance Program (HARP) is a mortgage refinance program designed to assist underwater homeowner’s with conforming / conventional home mortgages that are owned by Fannie Mae or Freddie Mac.
It is estimated over 30% of homeowners in Atlanta are underwater with even more in Florida. How many potential Atlanta HARP Refinance homeowners can be helped? Hundreds of thousands potentially.
If you are not sure who owns your loan then check out our LOAN SEARCH and find out.
Not all conventional mortgages will qualify for the streamline refinance program though. HARP Guidelines require the loan to be owned by Fannie or Freddie to be HARP eligible (**HARP 3 – #MYRefi has been proposed, it will open up eligibility, click HERE to stay up to date on the progress)
Regardless, HARP 2.0 is a positive expansion of the original HARP refinance eligibility guidelines.
The old HARP program had restrictions on Loan to Value of 125% and large interest rate adjustments for homeowners that were wanting to refinance an upside-down home. HARP 2 lifts those guidelines for the few mortgage lenders that have chosen to fully participate.
We are one of those Home Affordable Lenders.
The primary goal for the new Home Affordable Program is to allow responsible homeowners and outlet to refinance despite their equity position.
By allowing underwater homeowner’s the ability to take advantage of today’s lower interest rates without have to pay down their equity or have mortgage insurance, current homeowner’s can reduce their monthly mortgage payments, save more money and provide a boost to the economy.
It is working and it the effects on the economy and home values will continue if newest version of the Home Affordable Refinance Program (HARP 3 – #MYRefi) is passed.
HARP Refinance Eligibility
What Are the HARP Guidelines?
HARP has some basic eligibility guidelines that potential refinance homeowner’s must meet
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 been endorsed date prior to June 1, 2009
If you currently have an FHA, VA, USDA or Jumbo loan you will not be eligible to participate in the HARP 2.0 refinance program. You may have other refinance options, but HARP is not one of them.
Applicants must also meet minimum credit score and debt to income guidelines as well.
Despite what some HARP lenders say, borrowers with mortgage insurance ARE eligible. You are also eligible if you have a second mortgage. I know Bank of America (or another mega-bank) may have said otherwise, but they are wrong.
Bank of America or Wells Fargo saying no to your HARP refinance DOES NOT MEAN YOU DO NOT QUALIFY!
Over 50% of our HARP customers were originally turned down by their current mortgage bank.
The Home Affordable Refinance Initiative (HARP) has Three Main Components:
1. Expand opportunities for Fannie Mae to Fannie Mae refinances through Refi Plus™, which includes Desktop Underwriter® (DU®) and manual underwriting eligibility
2. Allow unlimited LTV ratios on the new loans and additional underwriting flexibilities (loans with LTVs of >105.01 are limited to fully amortizing fixed-rate mortgages with a maximum term of 30 years)
3. Provide a solution for borrowers with LTVs above 80% who currently may not be able to refinance because of mortgage insurance (MI) coverage requirements:
What Other HARP Guidelines Should I Know?
Yes, just because you have a Fannie Mae or Freddie Mac mortgage doesn’t not mean that you automatically qualify for a HARP refinance. There are some other basic guidelines which will also determine your eligibility.
- Mortgage Payment History – You must have been ON-TIME with your mortgage payments for the prior 6 months and have had no more than one 30 day late in the past 12 months.
- Minimum Credit Score – Most lenders will require a 620 middle credit score to participate
- Prior HARP Refinances – If you have used the HARP in the past you are not eligible to use it again
- Mortgages with Lender Paid MI – Mortgages that have Lender Paid Mortgage Insurance (LPMI) are ineligible
Really No Loan-to Value Restrictions?
Yes, there are really no loan to value (LTV) restrictions! Even if you are ridiculously underwater, so long as you meet the HARP Refinance | DU Refi Plus eligibility requirements outlines above you should be eligible to participate.
Even if you are currently at 200+% LTV you can still benefit from Obama’s Home Affordable Refinance Program. Ready to see if you meet HARP Guidelines? Stop waiting, click below for a HARP 2.0 consultation and we will let you know your refinance options.