Changes to the HARP program have increased the availibility of refinance on their "underwater" homes in Scottsdale, Cave Creek, Carefree and Rio Verde. If your situation falls under the following parameters, there are now options.
In order to be eligible for the HARP refinance program :
1.Your loan must be backed by Fannie Mae or Freddie Mac.
2.Your current mortgage must have a securitization date prior to June 1, 2009
If you meet these two criteria, you may be HARP-eligible. If your mortgage is FHA, USDA or a jumbo mortgage, you are not HARP-eligible. However, if you have a FHA loan you may qualify for a FHA streamline refinance. Call me for details and qualification.
What if neither Fannie Mae nor Freddie Mac has a record of my mortgage?
If neither Fannie nor Freddie has record of your mortgage, your loan is HARP-ineligible. However, you may still be eligible for a "regular" refinance to lower rates. Or, if your mortgage is insured by the FHA, use the FHA Streamline Refinance program. The FHA Streamline Refinance helps underwater homeowners, too. Call or email me for details or qualification.
What are the minimum requirements to be HARP-eligible?
First, your home loan must be paid on-time for the prior 6 months, and at least 11 of the most recent 12 months. Second, your mortgage must have been sold to Fannie or Freddie prior to June 1, 2009. And, third, you may not have used the HARP mortgage program before -- only one HARP refinance per mortgage is allowed.
Is there a loan-to-value restriction for HARP?
No. All homes -- regardless of how far underwater they are -- are eligible for the HARP program.
If I refinance with HARP using an ARM, do I still get "unlimited LTV"?
No, if you use an ARM for HARP, you are limited to 105% loan-to-value. Only fixed rate loans get the unlimited LTV treatment.
My bank says I can't refinance with HARP 2.0 because I have PMI. Is that true?
No, it's not true. You can refinance via HARP 2.0 even if your current mortgage has private mortgage insurance.
What happens to my second mortgage when I refinance my first mortgage using HARP 2.0?
HARP 2.0 is meant for first liens only. Second liens are meant to subordinate. You'll get to replace your first mortgage and your second mortgage will remain as-is. Just be sure to mention your second mortgage at the time of application so I know to subordinate if for you.
I am unemployed and without income. Am I HARP-eligible?
Yes, you do not need to be employed to use the HARP mortgage program. HARP applicants do not need to be "requalified" unless their new principal + interest payment increases by more than 20%. If the new payment increases by less than 20%, or falls, there is no requalification necessary.
I am now divorced. I want to remove my ex-spouse from the mortgage. Can I do that with HARP?
Yes. With HARP, a borrower on the mortgage can be removed via a HARP refinance so long as that person is also removed from the deed; and has no ownership interest in the home.
As you can see, this program is vastly improved over the previous one. If you have been denied refinancing your home in Scottsdale, Rio Verde, Cave Creek and Carefree, this may be what you have been waiting for. Give me a call and I will direct you to mortgage brokers that can help you with you "underwater" situation.
A special thanks to Jeff Thomas at the Lending Company in Phoenix for providing this information.
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