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HARP 2.0 Guidelines

2011 HARP Refinance Program / Making Home Affordable Refinance

If you’re underwater on your conforming, conventional mortgage, you may be  eligible to refinance regardless of your (LTV) loan to value and without having to pay mortgage insurance.

What is HARP?

(HARP) Home Affordable Refinance Program was created in April 2009 under the Obama administration. It is also known as the Making Home Affordable Plan or Obama Refi plan.

Effective 10/24/11 – The (5) main requirements for the HARP Refinance Program:

1. Your current mortgage must be owned by Fannie Mae or Freddie Mac
2. Your current mortgage must have closed and funded prior to June 1, 2009
3. Your current mortgage is a conforming, conventional loan.  – “Jumbo”,
   USDA and FHA loans are currently not eligible for the HARP program
4. Your home loan must be paid on-time for the prior 6 months and no more than one late payment in the last 12 months
5. You must be working or have enough income and adequate credit to qualify

Does Fannie Mae or FreddieMac ultimately own my mortgage?

Fannie Mae and Freddie Mac have both published “lookup” tools on their websites to help assist with finding out.

• Fannie Mae Lookup
• Freddie Mac Lookup

Let’s be clear on the a few things relating to the HARP program. The Home  Affordable Refinance Program wasn’t created to delay or stop foreclosures. This  program’s main focus is to benefit RESPONSIBLE homeowners who are current on  their mortgages, and who have lost equity, by giving them a chance to refinance too a lower interest rate to save MONEY.

Related key points of interest:

• The 125% (LTV) loan-to-value limit for HARP has been removed and is now “unlimited“
  All homeowners, regardless of the equity position in their homes, are  eligible to refinance using the HARP program
• 50% of our refinance transactions in the last 30 days are receiving appraisal waivers from the lenders (AVM) automated valuation model
• You can refinance using HARP with any participating lender, not just your current servicer
• If you don’t pay mortgage insurance now, you aren’t required to pay mortgage insurance on your new loan
• The HARP program does not allow for a “cash out” refinance
• The HARP program may be used to refinance an investment/rental property.  Condominiums are eligible for HARP refinancing
• HARP is not set to end January 1, 2014