DO YOU OWE MORE THAN YOUR HOUSE IS WORTH OR YOU CAN’T REFINANCE? 
Home Affordable Refinance Program (HARP 2.0)
The HARP 2.0 program may help homeowners make payments more manageable. The program’s goal is to allow homeowners to refinance their loans, even if they owe more than their homes are currently worth. Millions of homeowners are in this predicament because their homes lost value in the bursting of the housing bubble.
Homeowners can now lock into a lower rate and reduce the principal and interest of their monthly payments even with little or no equity.
HARP 2.0 may be a good choice if you are current with your existing mortgage payments and your mortgage was taken out prior to June 1, 2009.
March 17, 2012 is the release date for HARP 2.0, the most recent version of the Fannie Mae and Freddie Mac refinance program. Fannie’s version of HARP 2.0 is called the DU Refi Plus. Freddie’s version of HARP 2.0 is called LP Open Access.
Do I Qualify For This Program? Let’s Start With These Questions:
- The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae. Below are links for you to check (takes 30 seconds).
- The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
- The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
- The borrower must be current on the mortgage at the time of the refinance, with no late payment in the past six months and no more than one late payment in the past 12 months.
- You do NOT have to use your current servicer. Let me give you local, personalized service instead of dealing with someone off the internet or someone at one of the big banks where you’re just a number to them.
Here are some of the details:
MAXIMUM LTV AND LOAN AMOUNT FOR HARP 2.0:
- LTV (loan-to-value) and CLTV is UNLIMITED for all Occupancies and all Property Types
- HARP 2.0 refinances are limited to your area’s conforming loan limits. In San Diego County, the current conforming loan limit for a single-family home is $546,250. In Orange County and Los Angeles County, the current conforming loan limit for a single-family home is $625,500. In San Bernardino County and Riverside County, the current conforming loan limit for a single-family home is $417,000. In Santa Barbara County, the current conforming loan limit for a single-family home is $625,500. For all other counties maximum loan amounts, please contact Derek and he will let you know what they are.
- Loan purpose is Rate and Term Refinance only; loan amount can include pre-paids and closing costs
ELIGIBLE OCCUPANCY AND PROPERTY TYPE FOR HARP 2.0:
- Primary residence
- Second home
- Non-owner occupied
- 1-4 units
- Condos, PUDs, Manufactured homes
INELIGIBLE LOANS FOR HARP 2.0:
- Any loan currently in default
- Loans not owned by Fannie Mae or Freddie Mac
- Existing loan delivered to Fannie or Freddie on or after 6/01/2009
- Government loans – FHA, VA USDA – we have other programs for these
- Reverse mortgages
- 2nd position liens (ex. lines of credit)
NUMBER OF FINANCED PROPERTIES FOR HARP 2.0:
- DU – no limit
- LP – no limit if loan is primary residence, max 4 properties if loan is 2nd home or investment property
NO MINIMUM CREDIT SCORE IS REQUIRED FOR HARP 2.0! However, different investors will have different rules regarding credit scores. Most likely you will need a 620 score or higher. DU or LP will determine.
MORTGAGE HISTORY FOR HARP 2.0:
- DU – must be current
- LP – 0x30 in last 6 months, 1×30 OK in last 7-12 months
MORTGAGE INSURANCE FOR HARP 2.0:
- Existing loans with MI are eligible
- Your current MI company must reissue the current rate/policy
- If your current loan does not have mortgage insurance you will not be required to purchase it even if you don’t have the required 20% equity
MAIN HARP 2.0 QUESTIONS:
- My current mortgage company says they are the only ones that can help me refinance with HARP. Is this true? Do I have to use my current lender?
No. You can use any participating lender you want in the vast majority of cases, so start by calling me and I will make the process as easy as I can for you. We offer the same rates (or better) and programs as the big banks, but with faster turn times and a lot less hassle. - Do I need to pay closing costs?
YES. HARP refinance loans have closing costs just like any other refinance. Like other refinance transactions, you can pay the costs out-of-pocket, roll them into a slightly higher loan amount (most common), cover them with a slightly higher interest rate, or any combination of these options. - Will refinancing reduce the amount that I owe on my loan?
No. Refinancing will not reduce the principal amount you owe. However, refinancing should save you money by reducing the amount of interest that you repay over the life of the loan. - I recently had a short sale, what can I do?
Having a recent short sale does not necessarily deny you from refinancing into the Harp 2.0 program. Since your loan will be underwritten by DU or LP (Fannie and Freddie’s underwriting systems), the result of that underwriting will determine if you qualify or not with a recent short sale. - What will the interest rate be?
The interest rate will be based on market rates at the time of the refinance. Currently, interest rates are near historical lows, which makes this a good time to examine your refinancing options. - I have both a first and a second mortgage. Do I still qualify to refinance under HARP affordable Refi program?
Yes. Technically, the amount owed on the second mortgage doesn’t matter, but the 2nd mortgage lender does need to agree to subordinate their loan. - I have both a first and a second mortgage. Can I combine these into one new loan under the HARP program?
NO. You cannot combine these two (or more) loans into one. The HARP program will only refinance the existing first mortgage.
HARP 2.0 is only for mortgage loans owned by Fannie Mae or Freddie Mac. To see if your mortgage may be eligible for HARP 2.0, check these two sites first:
Fannie Mae HARP lookup: https://www.knowyouroptions.com/loanlookup
Freddie Mac HARP lookup: https://ww3.freddiemac.com/corporate
Please feel free to call me 619-647-3069 or email me today mcclintockmortgage@gmail.com and we can get started on your HARP 2.0 refinance right away.
