HARP Refinance Program – Home Affordable FAQ #2
Already visited our Home Affordable Refinance Program (HARP) frequently asked questions version one? If not click that link, learn the HARP basics and come back to this.
Ready? OK, moving forward. What’s next?
Will I Need an Appraisal for HARP 2.0?
Probably not. The folks that are super underwater are probably good. The borrowers that are close to 80% loan to value are the ones that might get worked. If you go from Fixed to ARM on your HARP refinance then you might also have to get an appraisal.
For the majority of Florida, Atlanta and Southeastern Homeowner’s don’t expect an appraisal. That’s the point of HARP 2.0, allowing responsible underwater homeowner’s to save.
You don’t need an appraisal and you don’t need equity for HARP 2.0.
I Have a 2nd Mortgage, What Happens with That?
It gets subordinated. You cannot include your first and second mortgage into on single HARP refinance. The Home Affordable Refinance is for 1st mortgages only. You second mortgage will have to be subordinated. Lenders are supposed to play ball, it might cost you a small subordination fee, but they will typically cooperate.
Why wouldn’t they? You are making your first mortgage more affordable with HARP. It is in their best interest you stay in your home, more affordable payments further that cause.
Are There Income Guidelines on HARP 2.0?
Good question, who knows. Technically Fannie and Freddie are pretty loose. HARP lenders are going to apply overlays, to what extent they do is still coming out.
For many borrowers, who are lowering their payments, the lender will not require documentation of income. Some lenders may have overlays or ask for some verification of income. All lenders will do a verbal verification of employment before closing. If your payment is increasing by more than 20% a full income underwriting will be required for your HARP refinance.
Had Some Issues, Filed Bankruptcy and / or Had a Foreclosure. Can I Still Play?
The economy hit the skids, many homeowner’s were affected. Heck, almost everyone was affected. Can you still get a HARP refinance after a bankruptcy or foreclosure?
YES! Not every HARP lender will allow it, but technically you are still allowed to take advantage of HARP even if you had some issues.
Keep in mind, you need to be current on your mortgage, with no more than one late payment in the last 30 days.
The goal is to help homeowner’s save, keep more people in their homes, prevent foreclosures and stimulate the economy. To accomplish that they need to help as many homeowner’s as possible.
We have more of your questions answered with more great HARP advice in the works! Didn’t see your question answered in this post? Check out the rest of our HARP advice. You won’t find a more thorough HARP Refinance guide ANYWHERE on the web.
Click Here if you missed — Home Affordable Refinance (HARP) Frequently Asked Questions #1
Click Here if you want our HARP Refinance Frequently Asked Questions #3
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