Our federal government has expanded the criteria under the Making Homes Affordable Program. In March of 2012, the program lifted its loan-to-value restrictions to help more people refinance who otherwise before were turned away due to insufficient equity. HARP, for short, allows homeowners to refinance in some cases without needing a home loan appraisal and in other cases without needing mortgage insurance. The program also allows homeowners to refinance primary residences second homes and investment properties so long as there is a net tangible benefit in the form of a house payment reduction.
HARP:Making Homes Affordable Program Benefits:
- Have you been turned away for a refinance by other lenders because your loan to value isn’t good enough?
- Are underwater on your current mortgage?
- Is your credit score not quite perfect?
Then the HARP:Making Homes Affordable Program is for you. The program allows you to refinance her house no matter how high your loan to value is so long as it is within the conforming loan limits of the county in which you reside. For Sonoma County, the maximum loan limit for this program is $520,950. Whether you need an appraisal or not, your loan will not be denied based upon loan to value.
Learn more about HARP 2.0 Refinance on these links:
Get The Scoop Harp 2.0 Refinance Q & A
No Loan Value Restriction on Fannie Mae & Freddie Mac Owned Loans
Learn More About The Obama Refinance Program
The Role Of The Second Mortgages In Refinancing
Dealing With A Low Appraisal Part 1
Dealing With A Low Appraisal Part 2
HARP:Making Homes Affordable Program Highlights:
- May not need an appraisal
- 1000% loan-to-value is not a problem
- Sub 700 credit scores are ok
- Program eligible with today’s extremely low rates
- Net tangible benefit will be payment reduction, rate reduction or term reduction ex. going from ARM to Fixed Amortizing or IO
- Loans to $520,950
- Primary residences are eligible
- Investment properties are eligible
- Second Home/Vacation properties are eligible
How The HARP:Making Homes Affordable Program Works:
- Chose from fixed rate programs
- Monthly mortgage and payment will include principal and interest amortized over the life of the new loan
- Loan being paid off must be owned by Fannie Mae or Freddie Mac. Visit Fanniemae.com and Freddiemac.com.
- Loan is owned by either Fannie Mae or Freddie Mac not both or not eligible
- Loan being paid off must be originated on or before June 1, 2009.
- Government loans are ineligible
If you’re a homeowner paying 4.375% on your current mortgage or higher, you owe it to yourself to see whether or not you can qualify for the Making Homes Affordable Program. Remember your loan needs to be owned by Fannie Mae or by Freddie Mac and cannot have been originated after June 1, 2009. If your loan is owned by Fannie Mae or Freddie Mac and it was taken out before June of 2009, talk to mortgage lender immediately about getting a mortgage rate quote. You owe it to yourself to refinance with today’s market low interest rates. You can even refinance in some cases without even needing an appraisal on your home. Appraisal waivers are usually eligible for primary residences and second homes. Investment properties are still eligible for the program, but are less likely to obtain an appraisal waiver. Take advantage of the HARP:Making Homes Affordable Program.
