HARP 2.0 Program – Underwater Homeoweners In Wisconisn

This updated refinance program, HARP 2.0, has been helping many underwater homeowners in Wisconsin.  Many homeowners are reading different guidelines from different lenders with this program.  This will happen, because each lender may create their own guidelines for HARP 2.0.

Here are some basic guidelines to help you understand what is allowed with HARP 2.0.  You always want to check with the lender you plan on working with first, in order to make sure your situation will qualify.

Guidelines To Follow

  • Fannie or Freddie Backed - Your mortgage needs to be backed by Fannie Mae or Freddie Mac in order to qualify.  Also, your mortgage had to be received by Fannie Mae or Freddie Mac before June 1, 2009.  Here are the website’s to look up your mortgage with Fannie and Freddie:
  • No LTV Limit - You can have little to no equity or be completely underwater on your mortgage.  There is no cap to how far underwater you are.  Some big banks have a cap to their LTV (loan to value), so you should check with a local mortgage company to find those that do not have a cap.  A Wisconsin lender that has no cap to the LTV for HARP 2.0 is Joshua Bucio.  Read more at http://www.milwaukeeharprefinance.com
  • No Appraisal - Just about all of the HARP approvals are receiving a waiver on the appraisal report.  This means you will not be required to appraise the home.  This will help reduce your costs and streamline the process of your refinance.
  • Eligible Properties - Your primary residence, second homes and investment properties all qualify for the HARP 2.0 program.  Your property can even be a multi-unit, up to 4 units total.
  • Second Mortgage - If you have a second mortgage or home equity line of credit, you can still refinance with the HARP program.  You cannot payoff the second mortgage with the refinance, so you have to keep it open.  This program is only for first mortgages.
  • Mortgage Insurance - If you currently have a mortgage insurance (aka PMI) payment, as part of your total payment, that’s ok.  The mortgage insurance on your current mortgage will be transferred to your new mortgage loan.  This will not hold you back from qualifying for HARP 2.0.

Please keep in mind many of the big banks have many more strict guidelines than most local mortgage companies.  It may not be your best choice to use a big bank.  Take the time to contact a local mortgage company that helps with the HARP refinance program.

What’s with All the HUD Emails?

What’s With All the HUD Emails?

Karen Deis, Publisher, www.MortgageCurrentcy.com

I don’t know what’s happening at FHA lately, but they seem to be back-pedaling A LOT lately, and worse yet, modifying some of the mortgagee letters by sending an “email” instead of a “formal notice.”

Here are a couple of things HUD has updated that will affect your origination business right now.

First, FHA has delayed the $1,000 collection, disputed account, identity theft rule (ML 2012-3) from last month until July 1st (which means Case Numbers issued after that July 1st date—not the loan app date). Go through your files and search for the deals that you killed because of this rule—and get them closed. What we expect is a modified version of this rule down the road. So stay tuned.

Another email from HUD clarified that reducing the term of a mortgage on a streamline refi will also meet the net tangible benefit test. The big deal here is that previously it did not apply to streamlines, and now it does.

So, in yet another email, HUD gave step-by-step details on how to cancel case numbers on streamline refis and special instructions for streamlines that require an appraisal. HUD has updated the streamline refi worksheet that you should have started to use on April 6, and an updated FHA TOTAL Scorecard Guide came out on March 15.

Okay, enough about FHA and on to HARP 2.0. Fannie just updated their FAQ on March 15 and updated five of the questions. The biggie here is the addition of question 59, where Fannie says you can add a non-occupant borrower to the refi plus and DU refi plus loans. What are some of the reasons you would want to do this? One reason would be that on a manually underwritten loan, where the payment increases more than 20%, you might need additional income to qualify. Another reason would be to add a child, spouse, brother, or sister who has limited credit to help them establish a mortgage credit history.

The other questions that were updated are: Can you refi if the loan is in a trial modification period?

Does a DU refi plus loan for a property located in a condo project, have to have a condo project review?

How do you use DU to find the standardized address if DU gives you a property mismatch warning?

Which types of transactions are eligible for a DU Refi Plus field work waiver? By knowing which types of loans qualify for waivers—and there are five types—you will not only save your borrowers the appraisal fee, but you’ll be their mortgage hero.

In this issue, you’ll find the very first ever Mortgage Talking Points for consumers: What You Need to Know about HARP: Home Affordable Refinance Program. (By the way, there are a couple of training classes on the http://www.mortgagecurrentcy.com.) This article makes it easy for consumers to understand these different topics: • Determining if your home qualifies • What you will need to apply • What is the “unknown” • What are the benefits. So how can you use it? Facebook post, blog about it, an email and snail mail.

In this issue, you’ll find a couple more Mortgage Talking Points for your real estate agents. The first one is called Manufactured Housing: Quick FHA Financing Facts. There are certain areas of the country where you’ll find manufactured housing, and FHA will finance these types of homes if they meet the 11 conditions. Real estate agents need to know this if they are listing this type of home.

The second is called Mortgage Credit Certifications: A Blast from the Past. Freddie updated how they will use the tax credit to help borrowers qualify for a higher loan amount. So if you are in an area where it’s offered, it’s another way to get the word out on how it works.

And to wrap up what you need to know this month, Freddie has renamed chapter 26 from “Cash and Other Equity” to “Borrower Funds.” The big change here is that cash-out proceeds from a refi cannot be used as cash reserves on Freddie loans.

So, why read Mortgage Currentcy?

Because getting a loan approved these days IS rocket science.

HARP Refinance Program – Underwater Homeowner’s in Atlanta Get RELIEF!

 Atlanta HARP RefinanceUnderwater Homeowner’s in Atlanta Get Refinance Help from Obama Administration

Atlanta, GA (January 2012) – Originally launched in April 2009, the Home Affordable Refinance Program (HARP) was designed to help underwater homeowner’s take advantage of low mortgage rates even if they were low equity or slightly upside down.

By allowing underwater homeowner’s the ability to take advantage of today’s lower interest rates without have to pay down their equity the HARP program was intended to help homeowner’s save money which they would them use to purchase consumer goods or create new jobs.

Sounds like a good idea right?

It was. HARP 1.0 helped a lot of people refinance. It was limited though. There were restrictions, price adjustments and loan to value caps that prevented a lot of Atlanta homeowner’s from benefiting.

One of the biggest issues with HARP 1.0? It was limited to your current mortgage servicer, you had to deal with a big 4 bank. Welcome to your own personal hell.

90+ days turntimes? CHECK. Multiple requests for the same documents? CHECK. Days waiting for you loan officer to return your call? CHECK. Three weeks before an initial decision? CHECK.

Enter HARP 2.0

Limited to a big 4 bank? Not anymore! The new HARP program is opened to all participating mortgage lenders. You can now use the mortgage professional YOU want to use for your HARP refinance. No more 3 month turn times to get your HARP closed. Does 3 weeks sound better than 3 months?

Loan to value restrictions? Gone! No equity, no problem. It does not matter how upside down or underwater you are, HARP 2.0 has no restrictions on loan to value.

Not an Owner Occupant anymore? No problem! HARP 2.0 is available to all homeowners. Second homes, investors, people that have relocated can now take advantage of today’s low rates.

Sounds good right? How do I know if I am eligible for HARP?

HARP 2.0 Eligibility & Guidelines

HARP, sometimes referred to as DU REFI+ or the Obama Refi plan, has some basic eligibility guidelines that potential refinance homeowner’s must meet

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
  3. You must be current on your mortgage with no late payments in the last 6 months.

If you currently have an FHA, VA, USDA or Jumbo loan you will not be eligible to participate in the HARP 2.0 refinance program. You may have other refinance options, but HARP is not one of them.

No LTV Restrictions for HARP 2.0? Really?

Yes, there are really no loan to value (LTV) restrictions! Even if you are ridiculously underwater, so long as you meet the HARP | DU Refi Plus eligibility requirements outlines above you should be eligible to participate.

Even if you are currently at 200+% LTV you can still benefit from Obama’s Home Affordable Refinance Program. Ready to see if you meet HARP Guidelines? Stop waiting, click below for a HARP 2.0 consultation and we will let you know your refinance options.

Get a HARP Rate Quote Now!

Florida HARP Refinance

Are you one of the 300,000 Atlanta homeowner’s underwater? Keep your house, explore a HARP Refinance, learn how Obama’s Home Affordable Refinance Program can help you!