HARP - Home Affordable Refinance Program

The new HARP (Home Affordable Refinancing Program) allows the opportunity for borrowers to refinance their current mortgage for their principal residence, second home and/or investment property for up to 105% of the current value. 

If your mortgage loan is owned by Fannie Mae or Freddie Mac you may be eligible for HARP and be able to take advantage of the current low interest rate environment. 

Guidelines

Loan-to-Value:
- First mortgage up to 105% 
- No maximum combined loan-to-value with existing subordinate financing

Minimum Credit Score:
Fannie Mae 620
Freddie Mac - case-by-case

Mortgage History:
- Must have a 12 month pay history on the subject property with no late payments.

Income and Asset Documentation:
- Standard documentation required.
- Stated Income/Asset is not allowed

Loan Size:
- Minimum Loan amount: $100,000
- Minimum Loan Amount for investment properties $125,000

Maximum Loan Amounts
1 unit $417,000
2 unit $533,850
3 unit $645,300
4 unit $801,950

Use of Proceeds
- Proceeds from the new refinance may be used to:
- Payoff the existing current loan balance
- All closing costs, prepaid items and points
- And cash back to the borrower in an amount that is not more than the lesser of 2% of the new mortgage loan balance or $2000.00

Proceeds for the new loan may not be used to payoff: 
- Existing escrow deficiencies 
- Existing delinquent taxes.
- Existing subordinate financing (second mortgages)

Subordinate Financing (second mortgages)
- Existing subordinate lien mortgage must be subordinated to the new loan
- The new refinance mortgage may not have new secondary financing
- Proceeds from the new loan may not be used to pay off subordinate financing 

Mortgage Insurance:
- If the current loan has mortgage insurance then mortgage insurance must be again placed on the new loan. And you must contact your existing loan servicer to refinance under this program.
- If there was no mortgage insurance on the original loan then NO mortgage insurance will be required on the new loan (Fannie Mae loans only). Even for loan-to-values up to 105%.

Eligible Properties
- Attached SFR
- Detached SFRs
- Attached PUDs
- Detached PUDs
- Condominiums (up to 90% loan-to-value)
- 2-4 Units

Ineligible Properties
- Working Farms
- Blanket Loans
- Co-ops
- Condotels
- Unimproved Land
- Newly Constructed (Properties < 1 year old)
- Mobile Homes (single-wide)
- Manufactured Housing
- Condo > 90% LTV

Ineligible Existing Mortgages:
- Reverse mortgages
- Second mortgages
- FHA and VA mortgages

Appraisal:
- Normally a full appraisal will be required. Under certain circumstances a full appraisal may not be needed.

Occupancy:
- Occupancy status must be the same as on the existing mortgage.

Currently or Recently Listed For Sale
- Properties must not have been listed for sale within the last 6 months.

Properties Owned:
- The usual restriction of the number of properties owned is waived.

If you find that your existing mortgage does not qualify for the Making Home Affordable program you may still wish to contact us to see if we can offer a loan program that may be helpful. Click here for your

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