For qualified borrowers who might not have any equity to Refinance
ASK about the the NEW FHA Streamline started June 11, 2012 with much lower PMI and almost 0 MIP.
Finally The government’s new HARP 2.0 Refinance Program is available to US homeowners as of March 17, 2012. If you’re property has negative equity or underwater you may be able to refinance with paying PMI.
Here are the details of the government’s new 2012 HARP refinance program.
In order to be eligible for the HARP refinance program :
Your loan must be backed by Fannie Mae or Freddie Mac. Check this site to find out: www.fanniemae.com/loanlookup and www.freddiemac.com/mymortgage
Your current mortgage must have a securitization date prior to June 1, 2009
If you meet these two criteria, you may be HARP-eligible. If your mortgage is FHA, USDA or a jumbo mortgage, you are not HARP-eligible.
HARP : Questions and answers
If my mortgage is held by Fannie Mae or Freddie Mac, am I instantly-eligible for the Home Affordable Refinance Program?
No. you have to fully qualify based on the Fannie or Freddie mac guidelines. Having your mortgage held by Fannie or Freddie is just a pre-qualifier.
Am I eligible for the HARP if I’m delinquent on my mortgage?
No. You must be current on your mortgage to refinance via HARP.
What are the HARP program’s mortgage rates?
Mortgage rates for the HARP mortgage program are the same as for a “traditional” refinance. There is no “premium” for using the HARP program. Your Fico Scores and Loan to value to make a difference in your rate pricing.
If I refinanced with HARP a few years ago, can I use it again for HARP II?
No. You can only use the HARP mortgage program one time per home. If you used HARP 1, you cannot use HARP 2.0.
Is there a loan-to-value restriction for HARP?
No. All homes — regardless of how far underwater they are — are eligible for the HARP program.
Maybe I wasn’t clear. I am really, really far underwater on my mortgage. Are you sure I can use HARP?
Yes, I am sure. The new HARP mortgage program specifically has no loan-to-value restriction so that homeowners in Florida, California, Arizona and Nevada can take advantage of it.
You can have 300% loan-to-value, and still be HARP-eligible. HARP is now unlimited LTV for fixed rate loans with 30-year terms or less. Now your question should be is it worth it to do this?
If I refinance with HARP using an ARM, do I still get “unlimited LTV”?
No, if you use an ARM for HARP 2.0, you are limited to 105% loan-to-value. Only fixed rate loans get the unlimited LTV treatment.
Will my home require an appraisal with the HARP mortgage program?
Depends . Although your home’s value doesn’t matter for the HARP mortgage program, lenders will run what’s called an “automated valuation model” (AVM) on your home. If the value meets reliability standards, no physical appraisal will be required. However, your lender may choose to commission a physical appraisal anyway — just to make sure your home is “standing”.
Is HARP the same thing as an FHA Streamline Refinance?
No, the HARP mortgage program is administered through Fannie Mae and Freddie Mac. FHA Streamline Refinances are performed through the FHA. The programs have similarities, however.
I have an FHA mortgage. Can I use the HARP 2.0 program?
No, you cannot use the HARP 2.0 program for an FHA loan. If your current mortgage is backed by the FHA, and your home is underwater, use the FHA Streamline Refinance program.
Do I have to HARP refinance with my current mortgage lender or can I do it with your company?
No, you can do a HARP refinance with any participating mortgage lender.
I pay PMI now. Will my PMI payments go up with a new HARP refinance?
No, your private mortgage insurance payments will not increase. However, the “transfer” of your mortgage insurance policy may require an extra step. Remind your lender that you’re paying PMI to help the refinance process move more smoothly.
What’s the biggest mortgage I can get with a HARP refinance?
HARP refinances are limited to your area’s conforming loan limits. In most cities, the conforming loan limit is $417,000. However, there are some cities in which conforming loan limits are as high at $625,500..
Can I do a cash-out refinances with HARP?
No, the HARP mortgage program doesn’t allow cash out refinance. Only rate-and-term refinances are allowable.
Can I refinance a second/vacation/ Rental home with HARP?
Yes, you can refinance an second/vacation property with HARP, even if the home was once your primary residence. The loan must meet typical program eligibility standards. However, for rental properties there is a Maximum Loan to value limitation of 105%.
What happens to my second mortgage when I refinance my first mortgage using HARP 2.0?
HARP 2.0 is meant for first liens only. Second liens are meant to subordinate. You’ll get to replace your first mortgage and your second mortgage will remain as-is. Just be sure to mention your second mortgage at the time of application so your lender knows to order the subordination for you.
Can I “roll up” my closing costs with a HARP refinance?
Yes, mortgage balances can be increased to cover closing costs in addition to other monies due at closing such as escrow reserves, accrued daily interest, and a small amount of cash. In no cases may loan sizes exceed the local conforming loan limits, however. Please inquire about “NO FEES REFINANCING.”
I am unemployed and without income. Am I HARP-eligible?
Yes, you do not need to be employed to use the HARP mortgage program. HARP applicants do not need to be “requalified” unless their new principal + interest payment increases by more than 20%. If the new payment increases by less than 20%, or falls, there is no requalification necessary.
Where can I get the lowest rates on HARP loans?
The HARP program is just like any other mortgage — you’ll want to shop around for the best rates and service. However, because HARP is a “specialty loan”, you may want to limit your shopping with reputable lenders that know how to specifically handle HARP loans.
When does the HARP program end?
If you are HARP-eligible, you must close on your mortgage prior to January 1, 2014 –days from now.
This is a great opportunity for homewoners who are responsible to get their rates lowered and start saving like everyone else.
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Please Call Ken Go of 1st Innovative Finance Group for your mortgage and Real Estate needs. Call 1 (800) 508-7048 or write to [email protected].