Apr 22, 2013 | Mortgage Guidelines, Mortgage Lenders
By David Bremer – Shamrock Financial Corp.
Breaking News! The HARP Loan is extended another 2 years until December 31, 2015.
That’s fabulous, but what’s HARP again?
HARP is the Home Affordable Refinance Program created for homeowners that either don’t have sufficient equity for a traditional refinance or are simply under-water and owe more than their home is currently worth. Without this program, most of these homeowners couldn’t take advantage of today’s fantastically low interest rates.
So far over 2 million homeowners have refinanced through HARP. The program was due to expire at the end of 2013 but it was determined that so many more homeowners are still eligible and in need of assistance so the FHFA (Federal Housing Finance Agency) decided to go ahead and extend the program until the end of 2015. Other than extending the end date, they have made no other changes at this time.
To qualify you must meet all of the following guidelines:
- Your loan must be owned by Fannie Mae or Freddie Mac. Note that that Fannie and Freddie don’t service the loans. Most conventional loans being serviced by lenders all across the country are actually owned or guaranteed by Fannie or Freddie so there is a good chance that if you have a conventional loan, it is too.
- Your current first mortgage must have been closed and sold to Fannie or Freddie on or before May 31, 2009. Some lenders took longer than others to deliver their loans to Fannie or Freddie but if you closed before this date you could be eligible.
- If you owe less than 80% of what your home is worth then you would qualify for traditional refinancing so you aren’t eligible for HARP but if you owe more than 80% of the value and even if you owe more than your home is worth, you may be eligible for HARP refinancing.
- You must be current on your mortgage with no late payments in the last 6 months and no more than one 30 day late payment in the last 12 months.
In addition:
- You can have a second mortgage or equity line and still be eligible. The new loan will not be able to refinance out of the second mortgage but you could still refinance the first mortgage for a lower rate.
- HARP is available for owner occupied properties, second homes and even investment properties.
- If you already refinanced under HARP then you aren’t eligible to do so again.
Don’t guess whether you are eligible or not! Check with a professional mortgage loan officer. They can quickly determine if you would qualify for this program or if you may qualify for another program. There are streamlined programs for FHA, VA, USDA and other mortgage loans. Even more importantly, if you checked in the past-check again!
When HARP was first announced, many people asked about refinancing and were told they didn’t qualify. The guidelines changed some at the beginning to allow more people to qualify. Also, even after the guidelines were expanded, it took many lenders a long time to be ready to handle the loans. As a result, many individuals who checked early on in the process were told they did not qualify and haven’t checked again. It is worth a phone call to find out for sure. Check with us at Shamrock and download our FREE HARP 2.0 Toolkit, which is filled with more information on qualifying for this program.
David Bremer – With over 8 years as a loan originator, David has always served the purchase market first because that is where you EARN a customer for life. Going above and beyond to ensure his clients are comfortable with the process and have a full understanding of their options are David’s strengths. David spends his time away from work with his wife, 3 children and their extended family and friends. David may be reached at david.bremer@shamrockfinancial.com.
Cell: 978-302-0475
Mar 20, 2012 | Mortgage Guidelines
The new, revamped HARP program is now available in Worcester County area and nationwide. It was officially released Saturday, March 17, 2012 by Fannie Mae and Freddie Mac.
HARP is an acronym. It stands for Home Affordable Refinance Program. HARP is the conforming mortgage loan product meant for “underwater homeowners”. Under the HARP program, homeowners in Massachusetts can get access to today’s low mortgage rates despite having little or no equity whatsoever.
HARP is expected to reach up to 6 million U.S. homeowners who would otherwise be unable to refinance.
HARP is not a new program. It was originally launched in 2009. However, the program’s first iteration reached fewer than 1 million U.S. households because loan risks were high for banks, and loan costs were high for consumers.
With HARP’s re-release — dubbed HARP 2.0 — the government removed many of HARP’s hurdles.
In order to qualify for HARP, homeowners must first meet 3 qualifying criteria.
First, their current mortgage must be backed either Fannie Mae or Freddie Mac. Loans backed by the FHA or VA are ineligible, as are loans backed by private entities. This means jumbo loans and most loans from community banks cannot be refinanced via HARP.
- To check if your loan is Fannie Mae-backed, click here.
- To check if your loan is Freddie Mac-backed, click here.
The second qualification standard for HARP is that all loans to be refinanced must have been securitized by Fannie Mae or Freddie Mac prior to June 1, 2009. Mortgages securitized on, or after, June 1, 2009 are HARP-ineligible.
There are no exceptions to this rule. (more…)
Feb 10, 2012 | Mortgage Guidelines
The government’s new, revamped HARP program is 6 weeks from release. Homeowners in Massachusetts and nationwide are gearing up to refinance.
HARP is an acronym. It stands for Home Affordable Refinance Program. HARP is the government’s loan product for “underwater homeowners”. HARP makes current mortgage rates available to households which would otherwise be unable to refinance because the home lacks equity.
This is a big deal — especially today. Mortgage rates are at an all-time low and millions of U.S. homeowners have been unable to take advantage. HARP aims to change that.
HARP originally launched in 2009. Its first iteration failed to reach a meaningful percentage of U.S. homeowners, however, because costs were high and loans were high-risk. With its re-release, the government has removed the hurdles to HARP, putting refinancing within reach for millions of U.S. households.
To qualify for HARP, homeowners must first meet 3 qualifying criteria.
First, their current mortgage must be backed Fannie Mae or Freddie Mac. FHA- and VA-backed loans are HARP-ineligible, as are jumbo loans and loans backed by portfolio lenders.
- To check if your loan if Fannie Mae-backed, click here.
- To check if your loan if Freddie Mac-backed, click here.
Second, the existing mortgage must have been securitized by Fannie Mae or Freddie Mac prior on, or before, May 31, 2009. If you bought your home or refinanced it after that date, you are HARP-ineligible.
There are no exceptions to this rule.
And, third, the existing mortgage must be accompanied by a strong repayment history. Mortgage payment must have been paid on-time for the last 6 months, at least, and there may not be more than one 30-day late payment in the last 12 months.
If these 3 qualifiers are met, HARP applicants should find the approval process straight-forward :
- Fixed rate mortgages allow unlimited loan-to-value
- The standard 7-year “waiting period” after a foreclosure is waived in full
- Except in rare cases, home appraisals aren’t required
Furthermore, HARP mortgage rates are expected to be on par with non-HARP rates, meaning that HARP homeowners in Worcester County area will get the same rates and pay the same fees as everyone else. There’s no “penalty” for using HARP.
The revamped HARP is expected to be generally available beginning Monday, March 19, 2012.
To get a head-start on HARP, check with your loan officer for the complete list of HARP eligibility requirements.
Nov 16, 2011 | Mortgage Guidelines
Tuesday, Fannie Mae and Freddie Mac unveiled lender instructions for the government’s revamped HARP program, kick-starting a potential refinance frenzy across Massachusetts and nationwide.
HARP stands for Home Affordable Refinance Program. The updated program is meant to give “underwater homeowners” an opportunity to refinance at today’s low mortgage rates.
In the two-plus years since its launch, HARP’s first iteration helped fewer than 900,000 homeowners. HARP II, by contrast, is expected to reach millions.
Lenders begin taking HARP II loan applications December 1, 2011.
To apply for HARP, applicants must first meet 4 basic criteria :
- 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 (more…)
Oct 25, 2011 | Mortgage Guidelines
The Federal Home Finance Agency announced big changes to its Home Affordable Refinance Program Monday. More commonly called HARP, the Home Affordable Refinance Program is meant to give “underwater homeowners” opportunity to refinance.
With average, 30-year fixed rate mortgages still hovering near 4.000 percent, there are more than a million homeowners in Fitchburg and nationwide who stand to benefit from the program overhaul.
To qualify for the re-released HARP program, you must meet 4 basic criteria :
- Your existing 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
Most notable about the new HARP refinance program, though, is that the government is waiving loan-to-value requirements on a HARP loans. Homeowners’ participation in the program are no longer restricted by their home’s appraised value. In fact, the new HARP doesn’t even require an appraisal, in most instances.
With the new HARP program, underwater mortgages can be refinanced without LTV limit or penalty.
According to the government’s press release, pricing considerations for the new HARP program will be released on or before November 15, 2011; and lenders are expected to be offering the program as of December 1, 2011.
If you think you may be eligible, first confirm that either Fannie Mae or Freddie Mac is backing your loan. Both groups provide a simple, online lookup.
If your loan cannot be located on either of these two sites, your current mortgage is not backed by Fannie Mae or Freddie Mac, and is not HARP-eligible.
The FHFA’s official press release contains an FAQ section. In it, you’ll find minimum qualification standards, as well as information related to condominiums and to mortgage insurance.
The HARP program is meant to help a wide group of homeowners, but each applicant’s situation is unique. For specific HARP questions, be sure to talk with a loan officer.
