Refinance Underwater Mortgage with HARP 2.0 Program

HARP Mortgage Program Lets Borrowers Refinance to Today's Low Interest Rates.

IMPORTANT: The November 15 announcement incorporated extensive guideline changes for the revised HARP program, also known as "HARP 2.0" by real estate industry professionals.

New criteria for the Home Affordable Refinance Program (HARP) has been launched by Fannie Mae and Freddie Mac in middle of November, 2011. The objective of improving HARP is to make available individuals who have slight equity or who are underwater on their homes to refinance their mortgage right this moment to low interest lower interest rates. The plan is that this can alleviate the housing industry and increase the general financial system, by placing more money into the accounts of borrowers who're prone to use them.

HARP Overview

HARP permits homeowners going through challenges refinancing their mortgage loan through standard strategies to submit an application for a refinance of their underwater mortgage. A home-owner that's on-time with their month-to-month bills however unable to refinance on account of a decline in the worth is the everyday top candidate for the HARP initiative. The main purpose is to permit a borrower to successfully complete a refinance in order to both decrease their interest rate and combined payment per month.

» CLICK HERE to APPLY NOW

Listed below are the overall qualification criteria for HARP:

1.) There is no such thing as a loan-to-value ceiling in the new HARP program, for fixed-interest-rate loans. That is essentially the most important change of HARP 2.0. With prior versions of HARP, the LTV couldn't go beyond one-hundred twenty five-percent.

2.) The loan on your real estate property is owned or assured by Fannie Mae or Freddie Mac. Verify you definitely have a Fannie Mae or Freddie Mac loan by calling 800-7FANNIE; Fannie and for Freddie 800-FREDDIE (from 8 am to 8 pm EST).

3.) When you apply for HARP, homeowners have to be paid up-to-date on their mortgage payments. You are allowed to have (1) 30-day overdue payment in the previous 12 months, however none throughout the prior 6 months.

You've a viable means to pay the new mortgage payments. Fannie Mae eliminated the "reasonable ability to pay" condition.

Standard HARP Program Eligibility & Requirements

A.) The loan should be owned or guaranteed by Fannie Mae or Freddie Mac on or prior to May 31, 2009.

B.) The loan was not refinanced with HARP at some point before, except it was a Fannie Mae loan that was refinanced with HARP starting March until May, 2009.

C.) The mortgage's present (LTV) loan-to-value is above 80%

» CLICK HERE to APPLY NOW

HARP 2 Program Modifications Benefits Underwater Homeowners

The condition of the new HARP is that it restricts lenders' legal responsibility in instances of mortgage non-payment. Primarily, Fannie and Freddie won't compel the lender to purchase again a non-performing loan. This implies extra lenders can be taking part in the program.

Fees Lowered
Loans with High LTVs used to pass greater fees to the lenders by Fannie & Freddie. As a result Lenders passed this on to homeowners. That is not the case anymore as those fees are gone. This helps homeowners to save additional money.

Lowered Credit Score and Income Rules
A low credit report score or beyond guidelines debt-to-income ratio shouldn't be enough to routinely exclude a borrower. Additionally, if your family is currently a one-income household when previously it was a two-salary household on the initial mortgage, one merely has to point out verification of 1 salary, as opposed to typical loans where all borrowers listed on the loan application needed to verify their salary.

1 Late Payment is OK
A HARP lender is able to grant a loan that has one late payment on their mortgage in the previous 12 months, so long as it did not take place in the most recent six months. Borrowers who have a latest mortgage late, you may nonetheless submit an application for HARP, once you satisfy the less stringent mortgage late criteria.

Vacation Homes & Rental Property are Now Eligible
Now you can use HARP to refinance not only your owner-occupied dwelling but also your vacation house or rental property.

Condominium Requirements Lowered
HARP eligibility used to insist on that no more than ten percent of condominium units within the building be owned by one individual and that no more than 20% of owners in the development be overdue on their HOA assessment. These conditions are now taken off.