• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sonoma County Mortgages

Contact Us About Mortgage Financing

All financing provided by New American Funding

(707) 217-4000 | Prequalify Now

Search Sonoma County Mortgages

  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Videos
  • About SCM
  • About Scott Sheldon

Primary Sidebar

Sonoma County Mortgages is a part of New American Funding

New American Funding - NMLS #6606

Get Your Latest Rate Quote Now!

HARP: Making Homes Affordable Aka The Underwater Refinance

March 19, 2012 by Scott Sheldon

Share on Facebook Share on Twitter Share on Pinterest Share on LinkedIn Share on Email

Many Sonoma County Loans have been denied due to loan-to-value restrictions imposed by Fannie Mae and Freddie Mac and an overall tight credit market. Last year the Obama administration announced the no loan to value refinance program for loans owned or guaranteed by Fannie Mae and Freddie Mac. For the last several months, many have speculated about when this program was going to become available for homeowners to actually start benefiting from it.

More recently there’s even been advertisements locally here in Sonoma County about the program. But what is it and how does it work, specifically?

Making Homes Afforable (Harp) is the underwater refinance program.

HARP has been toted as many things; the underwater refinance program, the upside down refinance, the Obama refinance to name a few. The program changes to allow no loan-to-value restrictions beginning on March 19.

Previously, the Fannie Mae Refi DU plus and the Freddie Mac Open Access Program broke down like this:

Fannie Mae-loans were able to be refinanced up to 125% loan to value sometimes without the need for an appraisal. There could be no mortgage lates in the last 12 months and the loan being paid off would’ve had to been originated on or before June of 2009. This included primary residences, second homes and investment properties. Usually second homes and investment properties would almost always need an appraisal.

Freddie Mac-loans were able to refinance up to hundred 105% loan to value and appraisal wavers were rare. There can be no mortgage lates in the last 12 months in the loan being paid off would’ve had to of been originated on or before June of 2009. This program was eligible for primary residences, second homes and investment properties as well.

Government insured mortgages such as FHA loans or USDA loans were ineligible for the Making Homes Affordable Program.

Making Homes Affordable New Changes on March 19, 2012

Fannie Mae-loans will now have no loan to value restriction. An appraisal will still be required, but the lender cannot deny the loan due to loan to value. Your mortgage lender will run an automated underwriting through Fannie Mae’s underwriting system known as desktop underwriter, DU for short. If you pass with an “Approve Eligible”, you should be good to go for financing. You can expect an appraisal on your Sonoma County loan to cost upwards of $400.

Freddie Mac-loans will have no loan to value restriction and just like the Fannie Mae product, and appraisal will still be required. The mortgage lender will run your home loan scenario through Freddie Mac’s automated underwriting program which is Loan Prospector, LP for short. If you pass with an “Accept Accept” you are eligible to move forward with financing. Once again the appraisal will run approximately $400.

These requirements still apply:

  • Loan being paid off must have been originated on or before June of 2009
  • Government insured loans are ineligible for this type of financing
  • If the loan being paid off contains monthly mortgage insurance, the new loan will also contain monthly mortgage insurance, yes the mortgage insurance companies are making changes as well to handle high loan to value loans.
  • There can be no mortgage lates in the last 12 months.
  • Primary residences, second homes and investment properties are all eligible for this new program
  • Closing costs can be refinanced into the new loan amount or paid separately at the close of escrow for an even greater monthly net tangible benefit.
  • Cash out on this program is ineligible. This program is for payment reduction mortgage refinances only.

If you have a Sonoma County Loan or California loan that is owned by Fannie Mae or Freddie Mac, take advantage of HARP immediately.

Not sure who owns your mortgage loan? You can visit Fannie Mae’s website http://www.fanniemae.com/loanlookup/. Freddie Mac’s site is https://ww3.freddiemac.com/corporate/. If your loan is not owned by Fannie Mae or Freddie Mac, still consider refinancing your Sonoma County loan. Mortgage rates are still quite favorable and will likely remain in the low four’s for quite some time.

Get the best Sonoma County mortgage rate and discover the making homes affordable refinance now.

 

 

 

 

 

 

 

 

 

 

 

 

Related Mortgage Advice from Scott Sheldon

  • Sonoma County Home Loan Refinance: When and How

    There’s an old saying amongst homeowners that you shouldn’t refinance your mortgage unless you can…

  • My loan is through Freddie Mac, why do need I cash to close on my HARP 2 Refinance?

    What steps can be taken if the mortgage is now Freddie Mac?  Cenlar services the…

  • HARP 2.0 Refinance: Get The "Real" Scoop

    If you live in or own real estate in Sonoma County and need to refinance,…

  • What loan programs are available to help me refinance if I'm underwater,my loan is not owned by Fannie Mae or Freddie Mac?

    If your loan is ineligible for the HARP 2 refinance program, you do have options.…

Filed Under: Loan Programs, Underwriting Guideline Updates

Get Sonoma County Mortgages News and Updates in Your Inbox

Footer

SCM on Facebook

SonomaCountyMortgages.com

Connect on Facebook

SCM On Instagram

Follow Sonoma County Mortgages on Instagram

Follow on Instagram

SCM on Zillow

Zillow Reviews for Scott Sheldon, New American Funding

See Reviews on Zillow

Location & Contact

Sonoma County Mortgages and New American Funding are an Equal Opportunity Housing Lender

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
2455 Bennett Valley Road C107
Santa Rosa, CA 95405
1-707-217-4000
View SCM Map | Email Us!

Map of Sonoma County Mortgages New American Financing Office

View Map on Google

Copyright 2010–2023 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day. If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-450-2010 Ext. 7100 for assistance.

State Licensing (Opens in New Window) | Privacy (Opens in New Window)
Terms of Use (Opens in New Window) | Electronic Consent Agreement (Opens in New Window)
Opens in new window Opens an external site Opens an external site in a new window