What's The Maximum Debt To Income Ratio For Harp 2 Refinance Loans?

The Harp 2 Refinance Program allows homeowners to refinance without any loan-to-value restriction. The program is slated to expire December 31, 2013, so if you qualify, start the process now.

Despite what your current mortgage lender will tell you or what you might hear in the media, the program does have debt to income requirements as well as a minimum credit score requirement.

Minimum debt to income ratios

primary residence-are limited to 55%

second homes-are limited to 50%

investment property using rental income to offset the mortgage payment-45%

investment property not using rental income to qualify-50%

minimum credit score for the program

Whether your loan is owned by Fannie Mae or by Freddie Mac, the minimal credit score required for the program is 620.

*Mortgage Tip: because lenders continue to tighten guidelines, as more financial oversight is being sought, then the whole credit score requirement will likely rise over time. Put another way, if you have a credit blemish or some sort of credit obligation that is preventing you from qualifying now, fix it. The trade-off? Saving a substantial amount of money on a new fixed rate mortgage with an interest rate at, near or in the range of 4%.

You can learn more about Santa Rosa Harp 2 Refinance Loans or start by getting qualified for a mortgage loan today.

RELATED MORTGAGE ADVICE FROM SCOTT SHELDON

why being a picky home buyer could be an issue

Why being choosy as home buyer could be problematic

You’ve decided to buy a home, you’ve gotten preapproved with a lender, your file has…

How earning more income affects your ability to buy a home.

How earning more income affects your ability to buy a home

If you’re thinking about purchasing a house, it’s not just your credit score and your…

how to refinance 2nd mortgage

Is is a second mortgage making your refinance harder? This tip may help…

Mortgage lenders sometimes take an overly gun shy approach to how a mortgage loan is…

How to avoid getting a jumbo loan due to Coronavirus

How to avoid getting a jumbo loan due to Coronavirus

Securing mortgage loan financing right has become a little bit of a challenge for some…

View More from The Mortgage Files:

begin your mortgage journey with sonoma county mortgages

Let us make your mortgage experience easy. Trust our expertise to get you your best mortgage rate. Click below to start turning your home dreams into reality today!