The New HARP Program (Home Affordable Refinance) Guidelines!
The HARP program stands for the Home Affordable Refinance Program and recently the U.S. government has made the HARP program more accessible for homeowners who are upside down in their homes. The bottom line is the program allows you to refinance with today’s interest rates even if you are upside down. We are participating as one of the HARP lenders in reaching the homeowners of America who have suffered from the down turn in the housing market. The goal is for you to save money.
As of November 13th 2011 the government has implemented new guidelines making it easier for more borrowers to qualify for the HARP program. As of March 17′th the new HARP guidelines are in effect! The former max loan to value ratio was 125% of your homes value, that limit has been lifted and for those needing to take advantage of this aspect of program you can now do so! Each lender has their own specific lending overlays that they are implementing for the program so be aware that not all HARP lenders will give you the same answers or the same rates, depending on your individual circumstances. We are a mortgage bank and a correspondent lender so we have the most flexibility to get you the best HARP mortgage out there.
HARP Program Eligibility Requirements:
-You must have good payment history with no 30 day late payments in the last 6 months and no more than one in the last 12 months.
-Your current mortgage must have to been sold to Fannie Mae or Freddie Mac on or before May 9th in 2009 and currently owned or guaranteed by either Fannie Mae or Freddie Mac.
-Your current loan to value ratio must be greater than 80%.
-There is no minimum credit score.
You have until December 31st 2013 to participate in the HARP program unless they extend it.
More Important Harp Program Changes:
There are no max loan to value ratios!
-You can use the program for investment properties and second homes.
-You can roll your closings costs into your loan!
-You may not need an appraisal!
-If you refinance into a 40 year mortgage the max LTV is 105%.
-Fannie Mae is removing the standard waiting periods for credit reestablishment after a bankruptcy and foreclosure. This is great if you lost an investment property but have been able to maintain your primary residence.
-If your payment increases in excess of 20% (for instance if you refinance into a 15 year mortgage) then your max allowable debt to income ratio will be 45% and you must have a minimum credit score of 620.
-You can have a second mortgage but you cannot finance it in with your first.
Is your mortgage owned by Freddie Mac or Fannie Mae?
You can look up your loan on the Fannie Mae site or
Freddie Mac.
If you need assistance please apply and a loan originator will help you look your property up.
The new changes have made it possible for consumers to obtain interest rates more in line with the current refinance market. Apply for the HARP program and you will be contacted promptly by telephone or email.
Watch Out For Scams! No Mortgage Lender is Sanctioned as The Official HARP Lender.
We are not a government entity, be careful of a mortgage lending institution that is claiming to be one of the official HARP program lenders or an official Home Affordable Refinance Specialist, there is no such thing.
Author: Keith Meredith
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