Important HARP Update:

On October 24, 2011, the Federal Housing Finance Agency announced that it is making a series of changes to the Home Affordable Refinance Program (HARP). The changes are intended to allow even more underwater homeowners refinance under HARP. The biggest change is the elimination of the 125 LTV ceiling on HARP loans. This means that theoretically, a borrower can refinance no matter how far they are underwater.

Minimum Requirements For a HARP Loan

  1. You home loan must be paid on time for the past 6 months and 11 of the most recent 12 months.
  2. Your mortgage must have been sold to Fannie or Freddie prior to June 1, 2009. Use the following links to see if your property is held by Fannie Mae or Freddie Mac.
  3. You may not have used the HARP program before. Only one HARP refinance is allowed. If you did HARP 1.0 you can’t refinance with HARP 2.0.

Harp Highlights

  • The program provides for unlimited loan-to value. No matter how far underwater you are with your home you can refinance into a HARP loan if it’s a fixed rate mortgage.
  • You can use any lender you choose to do your HARP loan if they participate in the program.
  • If you are underwater and you don’t have MI (Mortgage Insurance) you don’t need to get it with the HARP program.
  • If you currently have Mortgage Insurance you will have to keep it when you refinance.
  • If you have Lender Paid Mortgage Insurance (LPMI) you need to keep it. Tell the loan officer you have it. You usually have LPMI if you put less than 20% down and don’t have a 2nd loan.
  • The largest loan amount is $625,500 for the HARP program but in most areas it is $417,000.
  • You can refinance an investment or second home. Great rates on these properties!
  • You can refinance a condo or a manufactured home.
  • No cash out HARP loans.
  • You can roll in closing costs to your new loan. No money out of pocket.
  • You can be unemployed without income and qualify.
  • No minimum fico score required but you still must meet standard underwriting requirements.
  • Rates are subject to the market conditions and change daily. They are slightly better than some conventional rates and sometimes slightly worse depending on the property type, occupancy, and loan to value.
  • No maximum income limits.
  • If you have two loans on your property you can’t combine the two. The second loan will have to be subordinated to the new HARP first loan. Your loan officer can do this for you.
  • You can remove a co-borrower from the mortgage if they no longer share your home.

Clear Lending
16 Digital Drive, Suite 100
Novato, CA 94949
Branch License # 813F496 DOC
NMLS Loan Originator ID 223442
State Licensing

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