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.