HARP 2.0 – Beat from the Street (April 2012)
The HARP 2.0 Refinance program is was launched in March. Many underwater homeowners are still sitting on the sidelines wondering if they should give it a go.
They are skeptical as are many loan officers that HARP 2.0 will work. They may have already been turned down for a HARP Refinance.
Maybe their HARP 2.0 was turned down because they have mortgage insurance, maybe because of lender overlays, maybe because of loan officer ignorance, maybe because they had a condo, maybe because the property was not a primary residence. Who knows.
Is the skepticism justified? Yes and no.
HARP 2.0 – Issues & Problems
One of the problems we are seeing are the lender HARP guideline overlays. Instead of accepting Fannie Mae or Freddie Mac’s guidelines as they were issued, many mortgage companies are adding additional restrictions.
This is not new. Mortgage lenders do this to every loan program.
The government is laying heavy fines on lenders for foreclosing on homes over semantics. The bottom line is these homeowners did not make their mortgage payments. I abhor these people that use this absurdity to skirt their obligations. The responsible homeowners should too, they are ruining it for us and I am fed up with it.
I want to repeat this in crystal clear language - if you are not making your mortgage payment DO NOT CALL ME. The website is for responsible homeowners.
I digress, these lender overlays are making the HARP 2.0 process confusing for homeowners and lenders alike.
What was supposed to be an easy refinance program has become something different. It has become a mortgage product that requires an expert. Good thing you found us.
HARP 2.0 – What Is Closing?
If you get with the right HARP 2.0 lender then almost every HARP refinance can find a home.
- Loan to Value – not an issue for most lenders. However, some have credit score overlays that will kill your deal unless you are over 760. Some HARP lenders don’t these requirements.
- Mortgage Insurance – BIG deal for some lenders, others not so much. I have several HARP lenders that will not do any HARP refinance with MI, period. I have some that don’t care.
- Condos – No chance at some HARP 2.0 lenders, no problem for others.
- 2nd Homes – Same as condos, some HARP lenders won’t touch a 2nd home and others are will refinance.
- Investment Properties – another tricky one. Most lenders want nothing to do with investment properties, but there a select few that will still do a HARP refinance.
Bottom line, if you were turned down for a HARP 2.0 refinance don’t give up! There are options out there. Especially if your big bank turned you down. I get tons of calls from Bank of America turndowns that we are able to close.
Even if you were turned down you may still have options. Even if we can’t help you refinance we may have friends in our network who can. Don’t give up!
Still want to research? No problem. Check out our HARP 2.0 FAQ series and get your questions answered!
HARP 2.0 FAQ #4 – COMING SOON
HARP 2.0 FAQ #5 – COMING SOON