Improved HARP – Home Affordability Refinance Program… something that the Government got mostly right during the effort to assist homeowners that could not take advantage of historically low loan rates because their home values have dropped. Recent changes mean property owners should take a second look, specifically:
- Bankruptcy or Foreclosure seasoning requirements have been eliminated
- Up to 60% debt-to-income ratios are now accepted on all HARP refinances
- Promissory Note date now used to determine HARP eligibility, prior to 5/31/09. Until recently it was based on when Fannie or Freddie purchased the loan.
- 0x30 Mortgage rating in last 6 months is required – previously it was no late payments for 12 months!
- Loans that currently have mortgage insurance are allowed!
- Unlimited LTV/CLTV on HARP owner occupied homes, 2nd homes and Investment properties
60% of HARP eligible borrowers have NOT refinanced yet, probably because they were turned down. Now is the time for a second chance!
Available for INVESTMENT properties TOO!The Pros and Cons of Doorstep Loans is designed to allow a refinance of properties that no longer have 20% equity and benefit from historically low rates. In short, no late payments last 6 months, and your loan has to be owned by Fannie Mae or Freddie Mac (not the same as who services your loan or where you make your payments). Generally conforming loans (below $625,500). Promissory note must be dated on or prior to 6/1/2009. Existing 2nd loans are allowed – unlimited combined loan to value. Rates are fabulous so it’s worth checking if you would benefit from a refinance to record low rates. Multi-family properties up to four units can be refinanced at similar rates as there are caps on the adjustments for loan to value, credit score, occupancy and number of units! The main requirements are that the loan be owned by Fannie Mae or Freddie Mac. Remember, a loan can be serviced by any of the major servicers and still could be owned by Fannie or Freddie. The best way to tell is to provide a current mortgage statement and the last four digits of borrowers social. We can do the rest. No requirement (or benefit) to refinance with your existing lender as they may have overlays that restrict benefit. Fannie Mae and Freddie Mac will likely assign an automated valuation of the property thus eliminating the need for an appraisal. Primary residence or second home. With a primary residence there is a cap to the “adds” so rates are very competitive.
Send us your mortgage statement and note the last four digits of your social security number – and your email address – we can do the rest! No obligation at all – you might as well find out if you could lower your payment or take years off your mortgage.
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