HARP Guidelines: An Update On Eligibility Requirements
November 19th, 2011 categories: Buyer Strategies, Mortgage & Finance, Seller Strategies
Further info on the HARP program guidelines.
You may benefit from checking out this program.
Tuesday, Fannie Mae and Freddie Mac communicated new lender instructions for the government’s revamped HARP program. This may trigger loads of refinancing activity, so The Kathy O’Neal Team wanted to share this information.
You may already know that HARP stands for Home Affordable Refinance Program. The new changes are intended to give “underwater homeowners” an opportunity to refinance at today’s low mortgage rates.
Since the program’s launch two years ago, it has helped fewer than 900,000 homeowners.
The new and improved version may reach many more. We’ll see.
There are 4 primary criteria to apply for HARP:
- The existing mortgage must be guaranteed by Fannie Mae or by Freddie Mac
- The existing mortgage must have been securitized by Fannie Mae or Freddie Mac prior to June 1, 2009
- The mortgage payment history must be perfect going back 6 months
- The mortgage payment history may not include more than one 30-day late payment going back 12 months
For HARP applicants, loan-level pricing adjustments are waived in full for loans with terms of 20 years or fewer; and maxed at 0.75 for loans with terms in excess of 20 years.
This should significantly lower mortgages rates for HARP applicants — especially those with credit scores below 740.
An additional benefit: HARP applicants are exempted from the standard waiting period following a bankruptcy or foreclosure, which is 4 years and 7 years, respectively.
These two benefits should greatly widen the net of potential HARP participants.
But there are a few provisions which exclude some potential applicants:
- The “unlimited LTV” feature only applies to fixed rate loans or 30 years or fewer. ARMs are capped at 105% loan-to-value.
- Applicants must be “requalified” if the proposed mortgage payment exceeds the current payment by 20%.
- Applicants must benefit from either a lower payment, or a “more stable” product to qualify
Remember also that HARP is a one time deal. It can’t be used twice.
Fannie Mae and Freddie Mac will have minor variations, so work with your loan officer on these eligibility standards.
And if you need help getting a good lender I can provide a few referrals, as well as help you in any aspect of your home buying or selling goals. Email or call us anytime! I also invite you to view our Testimonial Video.
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New HARP Program Guidelines
October 30th, 2011 categories: Buyer Strategies, Mortgage & Finance, Seller Strategies
Recently the Federal Home Finance Agency announced significant changes to its Home Affordable Refinance Program Monday. The HARP (Home Affordable Refinance Program) was initiated to help “underwater homeowners” get their home refinanced.
There are over a million homeowners nationwide – and many home owners here in Chantilly and the Northern Virginia area - who might be helped by these changes. Given the historically low interest rates, it is wise to know about this program.
There are four basic qualifying criteria:
- Your current home loan must be guaranteed by Fannie Mae or Freddie Mac
- Your home must be a 1- to 4-unit property
- You must have a perfect mortgage payment history going back 6 months
- You may not have had more than one 30-day late payment on your mortgage going back 12 months
One of really big features of the updated program is that the government is waiving loan-to-value requirements on HARP loans. Homeowners’ participation is no longer restricted by their home’s appraised value. Actually, the new HARP doesn’t even require an appraisal, in most situations.
Under the new HARP program guidelines, an underwater mortgages can be refinanced without LTV limit or penalty.
According to the government’s official press release, lenders are expected to be offering the program as of December 1, 2011.
If you want to check it out, start by seeing if your loan is backed by Freddie or Fannie. Here is where you can go for that:
- Fannie Mae loan lookup : http://www.fanniemae.com/loanlookup/
- Freddie Mac loan lookup : https://ww3.freddiemac.com/corporate/
You can also call your lender directly.
If being underwater is not an issue, but you are looking for a few reputable lending sources, of course, let me know and I will be glad to provide you with a few referrals.
If you are home buying or home selling in the Northern Virginia area, please know I am always here for you!
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What if you are “underwater” and must refinance?
March 12th, 2010 categories: Mortgage & Finance, Seller Strategies
We have all heard about the problem of “underwater” home mortgages.
If you are dealing with this issue, I want you to be aware of the extension of the Home Affordable Refinance Program. It has been extended for another year, until June 30, 2011.
As I understand it, these are the four most basic requirements to get help from this program:
- The existing loan must be guaranteed by Fannie Mae or Freddie Mac.
- Your home must be a 1 to 4-unit property.
- You must have a perfect mortgage payment history going back 12 months.
- Your first mortgage balance must be 125% or less of your home’s market value.
Not sure if your loan is backed by Fannie Mae or Freddie Mac? Check it out at Fannie’s website: http://www.fanniemae.com/loanlookup; or at Freddie’s: http://freddiemac.com/mymortgage. If it is not listed, you are not eligible for the program.
There are a number of other details to be aware of, but this will get you started.
You can get more info from the HARP FAQ section on the government’s official website. A next step after that would be to contact your mortgage loan professional. If you need a few references, email or call me. I can give you a few reputable options.
Don’t let fear of the bureaucracy prevent you from at least getting more information. You may find this to be a viable option, but you will have to do a little homework.
And of course you can always call upon me to help with the areas of your situation that may involve home buying or home selling.
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