The HARP Program Explained

     The Obama Administration just released version 2.0 of it’s HARP Program (Home Affordability Refinance Program).  This program is projected to help even more homeowners who are upside-down any amount (in some instances the max. loan-to-value is 125%).  If you currently have an interest only loan, an adjustable rate mortgage and/or are at a higher interest rate than today’s low rates, they may be eligible.  You can convert those loans into 30, 20, 15 or 10 year fully amortized loans.
There are a number of requirements that must be met to insure that you are eligible to participate in the program and they include the following:

1. Your loan must be owned by Fannie Mae or Freddie Mac.  To find out if your loan is owned by Fannie, please click here!  To find out if Freddie owns your loan, please click here!  If either one shows a match found, then proceed to step 2.
2. In order to qualify for the program, your previous loan must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.   If this is the case, proceed to step 3.
3. If your loan does or does not have PMI or Mortgage Insurance, then proceed to step 4.  (this just changed…previously if you have PMI or mortgage insurance, you weren’t eligible)
4. Don’t assume that if you’ve had a Bankruptcy, Foreclosure or Short Sale in the past that you will not qualify.  This loan can be used for Primary Residence, Second Homes and Investment Properties.  Minimum FICO score is 640.  Cannot have any 30 day mortgage lates on credit in the last 12 months.  And if you have a second mortgage or home equity line of credit behind your 1st mortgage, the programs lets you have an unlimited CLTV (Combined 1st and 2nd loan-to-value).  Proceed to step 5.
5. Call your HARP expert at 661.964.2600 to review the rates that are available and whether or not this makes sense for you.  Ask for Jeff or Tony.