Pam Marron Home Lending

HARP 2.0

HARP 2.0 Refinance Program

There has been a lot of media attention given to President Obama’s revamped HARP refinance program.  Both Fannie Mae and Freddie Mac have released their updated guidelines for these loans.  Here are the highlights of President Obama’s enhanced HARP program.  Please keep in mind that ALL of the criteria must be met in order to be eligible.

  • Your loan has to have been sold to Fannie Mae or Freddie Mac prior to June 1, 2009 to be eligible.  If you closed on your current loan in May of 2009 or after, your loan may not  have made this cut off.
  • If the loan originally had a down payment of less than 20% and PMI insurance, you will be required to retain PMI insurance as part of the new loan unless you can demonstrate that you now have 20% equity based on a current appraisal.
  • A current appraisal of your home may be required as part of the approval process.  In some cases, the need for an appraisal is eliminated.  The appraisal requirements will vary from borrower to borrower.
  • As part of President Obama’s HARP program, homeowners with substantial decreases in value can still take advantage of this program. This is true even if you owe more than what your home is worth.
  • If you are currently making payments to your mortgage holder, there is generally no limit to the percentage of the home that can be financed.  Example, if you owe $200,000 and your home appraises for $100,000 your loan is essentially 200% of the homes current value.  Under the enhanced program you are still eligible. For clients who refinance with a “new servicer”, this option will be available in March 2012 if your current loan exceeds 125% of your homes current appraised value. All lenders are awaiting final rules to be published in March 2012.
  • In some cases, borrowers with new loans that are less than 80% of the homes current value that have a home equity loan where the current mortgage is sold to Freddie Mac may have a limit on the amount of the home that can be financed in total
  • Borrowers CAN NOT refinance a second mortgage as part of the first mortgage.  The second mortgage holder must be willing to go back into a second lien position in order for a borrower to refinance.

I will continue to monitor all sources of information on this program and will keep my website posted with the latest information at www.CloseWithPam.com.  If you have any questions or concerns please contact me at 727-375-8986 or email pmarron@tampabay.rr.com.

April 1, 2010 by · Leave a Comment

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