• 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!

Why harp refinances are dwindling

August 18, 2016 by Scott Sheldon

Share on Facebook Share on Twitter Share on Pinterest Share on LinkedIn Share on Email
fannie made change to home appraisal covid_19

One of the financial programs aimed at homeowners wishing to refinance in the economic downturn was Making Homes Affordable Harp 2. The program to this day allows people to refinance even if they are underwater. Here’s what you should know about this program…

How the program works

If you took out your loan May 31, 2009 or before you are eligible. The program will allow you to refinance as long as your loan is owned by Fannie Mae or Freddie Mac. The program also is very lenient on bankruptcy, and previous credit challenges and was super flexible in the loan-to-value requirement. The program while still available helped millions of homeowners nationwide secure more affordable mortgage loan financing for their financial situation.

What it lacks

It does not have any options for anyone who had an FHA Loan or for anyone who took out a loan after May 31, 2009. The mortgage industry has rumored that HARP 3 would roll out, but it never did.

Most homeowners today have equity in comparison to 2011. People can refinance their homes more easily as an exuberant economy has taken shape. People are feeling optimistic about their jobs, wage growth is picking up, and hiring is strong. People buy homes when they’re feeling optimistic about their job, income and financial future. This has lead to an increase in equity allowing many to refinance under other traditional loan programs.

The equity you need to refinance without Harp 2

  • 3.5% equity for an FHA refinance
  • 15% equity for an FHA cash out refinance
  • O% equity for a VA refinance up to 100% loan to value
  • 5% equity for a conventional refinance
  • 10% equity for a conventional refinance with no private mortgage insurance

Not all, but most borrowers today have more equity in their home than they may think especially if they bought any time before January 2014.

When the property is a rental

The minimum equity you need to have on a rental property is 25% to simply reduce the payment or lower the term. Harp 2 served a purpose when it was readily available. The program while still offered by Fannie Mae and Freddie Mac doesn’t really help any homeowners as most people can refinance under other affordable programs. Simply put, this program helps people who still have loans six or more years old.

A Harp 3 alternative should it ever become an option would be any one of following:

  • allow borrowers to refinance after May 31, 2009 without a loan to value requirement
  • extend to other mortgage loan programs providing more options for homeowners with tricky financial situations

If you are looking to refinance your home, be sure to check out all the available options to you for your financial situation.

Looking to refinance? Start now with a free quote.

 

Related Mortgage Advice from Scott Sheldon

  • Why FHA Streamline Refinancing Is Over

    Anyone who has purchased a home in Sonoma County with an FHA Loan has probably…

  • FHA Mortgage Rates Vs. Conventional Mortgage Rates

    Searching for a home financing? If yes, consider the most common types of mortgage loans…

  • FHA Streamline Refinances "The Truth"

    There is so much confusion out there associated with getting an FHA streamline refinance. You…

  • refinance your mortgage
    What your loan amount covers when refinancing

    Refinancing can shave years off your loan and help you pay off your home faster.…

Filed Under: Loan Programs, Loan Qualifying, Mortgage Shopping, Mortgage Tips & Advice, Popular Tagged With: loan programs, mortgage payment, mortgage rate quote, qualifying for a mortgage, refinancing, shopping mortgage rates, Sonoma County Mortgage Rates, sonoma county refinancing

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