HARP 2.0 will officially be released around March 15, 2012. I have compiled the most information I could, as of January 31, 2012, to give you the best information about HARP and HARP 2.0. Final guidelines could start coming out the end of February, but we do not know for sure yet. However, until that date you have two options.
Option 1 – read below and see if you fit in to the current Refi Plus Program that allows you to go to 125% loan-to-value on your 1st mortgage and unlimited combined-loan-to-value on your 1st and 2nd loan combined
Option 2 – contact me and I will add you to my list of people to contact once we get the full Underwriting Guidelines for HARP 2.0 (if you don’t fit under these guidelines right now)
The figures below are for San Diego and Los Angeles counties. For other California county loan limits, you can check them by clicking right here and select your state (California), type in your county and click send. Then look at the high cost area limits for Fannie/Freddie, and that is how high your new loan amount can be to qualify. There are no cash out loans on HARP 2.0.
Current DU (Desktop Underwriting) Refi Plus Fixed 15 & 30-Year
Rate/Term Refinance Owner Occupied, Second Home, Investment Property
# Units / Max Loan Amount / Max LTV/CLTV / Min FICO
1 Unit $546,250 125%/Unlimited 620
1 Unit $625,500 125%/Unlimited 620
- Minimum loan amount $0.
- Max LTV of 125% on the 1st loan and no max CLTV with a subordinated loan (a current 2nd loan)
- >105% LTV requires field review appraisal
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. Click here to see if it is. 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 current loan-to-value (LTV) ratio must be greater than 80% and less than 125% on your first loan.
- 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 loan 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.
The following are the requirements for the DU Refi Plus program:
- Property must be looked up on the FNMA website for eligibility http://www.fanniemae.com/loanlookup/
- Borrower and property address on new loan must match existing loan
- Mortgage Lates: no lates in the last 6 months, One late payment in the last 12 months is typically ok
- Existing loan MUST HAVE CLOSED before June 1, 2009
- If you have a 2nd loan, that loan MUST subordinate
- New loans greater than 105% LTV must be a fully amortizing 30 or 15 year fixed, No ARMS
- New borrowers can be added to the loan. (Effective on 4/17 DU Release)
- Borrowers can be removed with documentation to show remaining borrower has made payments last 12 months evidenced with bank statements only, prior to the origination of the new mortgage
- 2nd Home – 2 months PITI
- Investment – 6 months PITI
- Existing subordinate financing must be re-subordinated to the new 1st lien
- New subordinate financing is not allowed
- No Max CLTV/HCLTV required
- Investment & 2nd Home Properties- Max ownership other properties 4 financed properties
- Impounds required if current loan has tax/insurance impounds
- 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
- If you currently have Mortgage Insurance, in order to qualify for HARP 2.0, your current mortgage insurance must be either MGIC or Radian. We will help you figure that out.
- Most likely you will need a minimum credit score of 620 – but call us
- Manufactured Homes are INELIGIBLE
- Some investors might have different underwriting guidelines, so call us and we will personally check out your situation with different investors
Need Note and current statement on existing loan to confirm:
- All existing borrowers are on the new loan (however, in certain cases we are able to remove borrowers that are currently on the loan)
- Benefit established (lower P&I or more stable product)
- Existing loan closed before 6/1/09
- Existing loan is current
- Confirmation of no Mortgage Insurance (confirm by recent mortgage statement)
- Cash back does not exceed $250.00
- Subordinate financing must be re-subordinated
If loan is approved using a Property Inspection Waiver:
>105% LTV/CLTV requires a field review appraisal
How do I know if my loan is owned or controlled by Fannie Mae or Freddie Mac?
Simply call or E-Mail me and I will look up your address or you can look it up by clicking here for Fannie Mae or here for Freddie Mac
I owe more than my property is worth. Do I still qualify to refinance under the HARP Special Refi Program?
Yes. Eligible loans will include those where the first mortgage exceeds the current market value of the property.
If I am behind (delinquent) on my mortgage, do I still qualify for the HARP Refinance Initiative?
No. You must be current with typically no late payments in the last 12 months.
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.
Will refinancing lower my payments?
That depends. If your interest rate is much higher than the current market rate, you would likely see an immediate reduction in your payment amount. However, if you are have an adjustable loan, or are paying interest only on your current mortgage, you may not see your payment go down. BUT… you will be able to avoid future mortgage payment increases and may save a great deal over the life of the loan by getting a new fixed rate loan.
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.
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.
Can I get cash out to pay other debts?
No. Only standard closing costs (appraisal, title, credit report, escrow, lender fees, etc) may be included in the refinanced amount.
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.
I am really far underwater on my mortgages, can I still use HARP?
YES. Under the new HARP 2.0 (Starting December 1, 2011). Under the old HARP rules, you were capped at 125% CLTV. Now you can be really far underway and still qualify for HARP.
What is the maximum loan amount? I have / need a jumbo loan?
The maximum loan amount is the same as the maximum loan amount in your area. Click here to see what that amount is in your county. Select your state (California), type in your county and click send. Then look at the high cost area limits for Fannie/Freddie and that is how high your new loan amount can be to qualify.
I heard adjustable mortgage refinances are different?
YES. If you choose a new adjustable loan, you are capped at 105%. Only fixed rate refinance loans are unlimited.
My current loan is FHA, can I use HARP?
No. Only loans that are backed by Fannie Mae or Freddie Mac are eligible. FHA loans, VA loans, USDA Rural Development, and many private loans, like the ING Orange ARM loans are NOT eligible.
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.
Please feel free to call us 866-426-7334 or email us today Office@1sandiegohomes.com and we can get started on your HARP 2.0 refinance right away