Home owner’s can apply for the HARP 2.0
If you haven’t read the news about the expanded qualification guidelines for the Home Affordable Refinance Program (HARP)—what some are calling HARP 2.0—you may want to read through some of the information below. This is an excellent opportunity for you to take advantage of this program which is made to help home owners lower their mortgage payments.
For homeowners may be underwater—and thus under the assumption that they cannot refinance to take advantage of record-low interest rates—the HARP 2.0 program is likely to provide them some options to explore. While every mortgage situation is different, the HARP 2.0 requirements are broader than the original HARP requirements as it aims to assist millions of previously-ineligible homeowners.
At a high level, HARP 2.0:
Does not require the loan to be “underwater,”
- Has no loan-to-value restriction,
- Has no debt-to-income restriction,
- Must refinance Fannie Mae/Freddie Mac loans exclusively,
- Will assist homeowners who are current on their mortgage payments but would like to take advantage of lower rates and/or lower monthly payments.
Please reach out to me and I will put you in contact with lenders that will be able to assist you and put you on the path of a more healthy financial standing—which could position you for a home purchase in the future.
David Johnson is with Prosperity Mortgage and works in the Long and Foster office in Leesburg. Please feel free to reach out to him for a free and without obligation consultation to see how the HARP program may be of help to you. For more information, and take a moment to read through the informative FAQs below. Please contact me for all your real estate questions and concerns.
HARP 2.0 FAQs from Prosperity Mortgage
| How do I know if Fannie Mae or Freddie Mac owns my mortgage? | You can have your client contact Prosperity and the loan officer can look it up, or you can visit fanniemae.com/loanlookup for Fannie Mae or freddiemac.com/mymortgage for Freddie Mac. |
| I am really upside down my mortgage, am I still eligible? | Yes, there are no loan-to-value limits with the new HARP 2.0 program (some restrictions apply). |
| I am currently behind on my mortgage payment, am I still eligible for HARP? | No, you must be current on your mortgage for the past 6 months and have only one late payment in the last 12 months. |
| I put down 20% when I purchased my home, and now my home is under-water. If I refinance with HARP 2.0, will I have to pay mortgage insurance now? | No. If you current loan does not require mortgage insurance, then HARP will not require mortgage insurance. |
| Can I finance or roll my closing costs into the loan with a HARP 2.0 refinance? | Yes. Mortgage balances can increase to cover standard closing costs in addition to other costs due at closing such as escrows and daily interest. |
| What are HARP 2.0 interest rates? Are they higher than normal rates? | HARP 2.0 interest rates are based on several factors, but are typically very competitive with conforming fixed rates. Contact your local Prosperity Mortgage consultant for a specific quote. |
| Can I use HARP 2.0 to refinance an investment home, vacation home or rental home? | Yes, if your mortgage is backed by Fannie Mae, you are eligible. |
| I rent out my home, is it eligible for the HARP 2.0 Refinance? | Yes. You can refinance your investment property, even if it once was a primary residence. |
| Are condominiums eligible for the HARP 2.0 Refinance? | Condominiums are already eligible under HARP and, under the enhanced program, condominiums that originally met Fannie Mae/Freddie Mac requirements remain eligible. |
| Can I consolidate mortgages with a Making Home Affordable refinance? | No, you cannot consolidate multiple mortgages with the HARP refinance program. It’s for first liens only. All subordinate/junior liens must be resubordinated to the new first mortgage. If you have a second mortgage, be sure to mention that to your lender as well. |
| Who should I call for additional questions I have? | As always, contact your local Prosperity Mortgage consultant for more details and to get specific quotes for your clients. |
