HARP 2.0 Underwater Refinance Program
The Home Affordable Refinance Program (“HARP”) was established by the Federal government in 2009 for certain residential first mortgages owned by Fannie Mae (FNMA) or Freddie Mac (FHLMC). The primary purpose of HARP is to help homeowners who have been current on their mortgage payments to be able to refinance into today’s low interest rates even if they have less than 20% equity in their respective homes, up to 125% loan-to-value (LTV). Recently, this program was expanded by removing several previous restrictions, including the 125% LTV limit. Qualified homeowners can now refinance even if they owe more than 125% of their home’s current value. The expanded version of this program is unofficially called “HARP 2.0.”
- Unlimited Loan-to-Value (LTV) – Qualified borrowers can now refinance without concern if they owe more than their property is worth - as long as you have less than 20% equity. For example, if you owe $150,000 on your first mortgage, your home must be worth less than $187,500.
- No Appraisal – In most cases, there is no appraisal required. This will save you approximately $300 - $400.
- Relaxed Credit Score Requirements – Borrowers do not need A+ credit to qualify for HARP 2.0!
- All Residential Property & Occupancy Types – Single family homes, townhomes, condos, 2nd homes & investment/rental properties are all eligible.
- The existing 1st mortgage must have been acquired before June 1, 2009 and it must be currently secured by Fannie Mae of Freddie Mac.
- At the time of application, you must be current on your mortgage payments for the past six (6) months with no more than one (1) late payment in the past twelve (12) months.
- The new 1st mortgage amount must be greater than 80% of the home’s current value. For example, if the amount of your new loan is $150,000, your house must be worth less than $187,500.
- The new 1st mortgage amount cannot exceed maximum conforming loan limits (typically $417,000).
- You do not qualify if you previously refinanced under the Home Affordable Refinance Program (HARP).
Since lenders will soon be overwhelmed with new refinance applications, it is imperative that you REGISTER NOW! with us. Doing so will provide you a distinct advantage by ensuring that your file will be submitted immediately – before the rush begins. This will allow not only allow you to close your loan faster, but it will also protect you against potential interest rate increases.**
If you are among the estimated two (2) million Floridians expected to potentially qualify under HARP 2.0, we highly recommend the following:
To expedite the process, please gather copies of the following required items:
- Most Recent Mortgage Statement(s) (including 2nd mortgage, if applicable)
- Home Owner’s Insurance Policy (Declaration Page only)
- Owner’s Title Insurance Policy (Schedules A&B only) – NOTE: This will allow you to receive a significant discount on your title insurance costs.
- Driver’s License (all borrowers)
*Some restrictions may apply. The information herein is accurate as of 2/26/12 and is subject to change without notice.
**There is no cost or obligation whatsoever for registering with us – and we never charge points or application fees.