The Home Affordable Refinance Program (HARP) has been extended. The program's new expiration date is June 30, 2012.
If you're underwater on your conforming, conventional mortgage, you may be eligible to refinance your home without paying down principal or having to pay mortgage insurance.
More people are eligible than you might otherwise think.
Since the Home Affordable Refinance Program's April 2009 inception, I've fielded a lot of questions about how the program works, and exactly whom is eligible.
HARP goes by several names. I use the blanket name HARP because that's what the government calls it. The program is also known as the Making Home Affordable plan, the Obama Refi plan, and Relief Refinance.
What follows is a collection of answers, plus other details of the program, of which you should be aware.
First: Of primary import are these two points:
Only Fannie Mae- and Freddie Mac-backed loans are HARP-eligibleYour current mortgage must have a securitization date prior to June 1, 2009If you don't meet these two criteria, you are HARP-ineligible. Period.
Both Fannie Mae and Freddie Mac have posted "lookup" forms on their respective websites. Check Fannie Mae's first because Fannie Mae's market share is larger. If no match is found, then check Freddie Mac.
No. There is a series of criteria. Having your mortgage held by Fannie or Freddie is just a pre-qualifier.
Yes.
Find a recent mortgage statement and write "Fannie Mae" or "Freddie Mac" on it -- whichever group backs your home loan. You'll need this information because the Home Affordable Refinance Program is slightly different which each entity. Next, you'll want contact a loan officer about starting your HARP refi.
If neither Fannie nor Freddie has record of your mortgage, your loan is held somewhere else and is, therefore, HARP-ineligible. You may still be eligible for a "regular" refinance to lower rates, however. Use this form to get a rate quote or use a competing bid service like .
No. You must be current on your mortgage to refinance via HARP.
No. The Home Affordable Refinance Program is not designed to delay, or stop, foreclosures. It's meant to give homeowners who are current on their mortgages, and who have lost home equity, a chance to refinance at today's low mortgage rates.
First, your home loan must be current. You may not be delinquent or behind in your payments. Second, you can't be more than 25% underwater on your home. Officially, this is known as having a 125% loan-to-value. Third, your mortgage must have been originated and sold to Fannie or Freddie prior to June 1, 2009.
Take your the balance of your first mortgage and divide it by the value of your home. This is your loan-to-value.
No. With the Home Affordable Refinance Program, you can refinance with any participating HARP lender. Apply here online for a rate quote.
No, you won't. If your current home loan doesn't require private mortgage insurance, you won't have to start paying it on your new home loan.
No, your private mortgage insurance payments will not increase. However, the "transfer" of your mortgage insurance policy may require extra steps. Remind your lender that you're paying PMI to help the refinance process move more smoothly.
HARP refinances are limited to the lesser of 125% of the home's value, or the area's conforming loan limits. In most cities, the conforming loan limit is $417,000. However, there are some cities in which conforming loan limits are as high at $729,750. You can lookup your area's conforming loan limits by clicking here.
No, only rate-and-term refinances are allowable according to the Home Affordable Refinance Program guidelines.
Yes, you can refinance an investment/rental property with HARP, but only if the home was originally financed as an investment property. You can't HARP-refi a home that was originally a primary residence and is now considered a rental.
Yes, you can refinance an second/vacation property with HARP, but only if the home was originally financed as an second/vacation property. You can't HARP-refi a home that was originally a primary residence and is now considered a second home.
No, you cannot consolidate multiple mortgages with the HARP refinance program. It's for first liens only. All subordinate/junior liens must be resubordinated to the new first mortgage.
Yes, mortgage balances can be increased to cover closing costs in addition to other monies due at closing such as escrow reserves, accrued daily interest, and a small amount of cash. In no cases may loan sizes exceed 125% of the home's value, nor may they exceed the local conforming loan limits.
No. Income verification is required in the HARP refinance program.
Yes, with HARP, applicant income is verified in the same manner as with a traditional refinance -- via a combination of W-2s, paystubs, tax returns and other, underwriter-requested documentation.
Base mortgage rates for the HARP program are the same as for a "traditional" refinance. Loan-level pricing adjustments may apply.
No, there is no minimum credit score requirement with the HARP refi program, per se. However, you must qualify for the mortgage based on traditional underwriting standards.
In most cases, no.
"DU Refi Plus" is the brand name Fannie Mae assigned to its particular flavor of the HARP program. "DU" stands for Desktop Underwriter. It's a software program that simulates mortgage underwriting. "Refi Plus" is a gimmicky-sounding term that could have been anything. The name has been trademarked, however. As an aside, Freddie Mac is using the branded name "Relief Refinance".
Maybe. HARP guidelines specifically prohibit removing a signer from the note, but there are circumstances in which you can remove a co-signer from the mortgage and from the deed so that the former co-signer has no ownership interest in the home. If that's not possible, to remove a spouse (or co-signed) from the mortgage, a traditional refinance is required.
Lock for 45 days, at minimum. This is because the HARP program, while streamlined for simplicity, still has some grey areas that can lead to delay. It's better to have a rate lock that lasts too long than not long enough.
Use this form to get a rate quote or use a competing bid service like .
If you're ready to apply, click here to generate an online quote. Or, if you have a specific HARP question, send me an email and I'll do my best to give a good reply.
Lastly, don't forget! The Home Affordable Refinance Program is not meant to save a home from foreclosure. It's meant to give underwater homeowners a chance to refinance without paying PMI.
If you need foreclosure help, call your current loan servicer immediately.
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