HARP II Loan Details - Refinance With No Equity? Absolutely..

FOR IMMEDIATE RELEASE
Phoenix, Arizona, United States of America (Free-Press-Release.com) January 24, 2012 -- HARP UPDATE (January 24, 2012) : The government announced changes to its HARP program recently. This is the deal... If you're underwater on your conforming, conventional mortgage, you may be eligible to refinance without paying down principal and without having to pay mortgage insurance.. and the kicker is that you can be underwater by ANY amount!

Here are the details of the government's new HARP refinance program:

HARP II QUESTIONS AND ANSWERS

What Is HARP? HARP was started in April 2009. It goes by several names. The government calls it HARP, as in Home Affordable Refinance Program. The program is also known as the Making Home Affordable plan, the Obama Refi plan, DU Refi +, and Relief Refinance. 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.

Do these question-and-answers account for the "new" HARP mortgage program? Yes, everything you are reading is accurate as of today, January 10, 2012. This post includes the latest changes as rolled out by the Federal Home Finance Agency on October 24, 2011, and as confirmed by Fannie Mae and Freddie Mac on November 15, 2011.

Is "HARP" the same thing as the government's "Making Home Affordable" program? Yes, the names HARP and Making Home Affordable are interchangeable.

How do I know if Fannie Mae or Freddie Mac has my mortgage? Fannie Mae and Freddie Mac have "lookup" forms on their respective websites. Check Fannie Mae's first because Fannie Mae's market share is larger. If no match is found, then check Freddie Mac. Your loan must appear on one of these two sites to be eligible for HARP.

If my mortgage is held by Fannie Mae or Freddie Mac, am I instantly-eligible for the Home Affordable Refinance Program? No. There is a series of criteria. Having your mortgage held by Fannie or Freddie is just a pre-qualifier.

My mortgage is held by Fannie/Freddie. Now what do I do? Call Chris Bang @ 602-494-5005 for immediate pre-approval for this upcoming program!

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 for details..

Does HARP work the same with Fannie Mae as with Freddie Mac? Yes, for the most part, the HARP mortgage program is the same with Fannie Mae as with Freddie Mac. There are some small differences, but they affect just a tiny, tiny portion of the general population. For everyone else, the guidelines work the same.

Am I eligible for the Home Affordable Refinance Program if I'm behind on my mortgage? No. You must be current on your mortgage to refinance via HARP. Will the Home Affordable Refinance Program help me avoid foreclosure? No. The Home Affordable Refinance Program is not designed to delay, or stop, foreclosures. It's meant to give homeowners who are current on their mortgages, and who have lost home equity, a chance to refinance at today's low mortgage rates.

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.

If I refinanced with HARP a few years ago, can I use it again for HARP II? No. You can only use the HARP mortgage program one time per home. 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.

I am really far underwater on my mortgage. Can I use HARP? Yes, you can. There is no loan-to-value restriction under the HARP mortgage program so long as your new mortgage is a fixed rate loan with a term of 30 years or fewer.

Maybe I wasn't clear. I am really, really far underwater on my mortgage. Are you sure I can use HARP? Yes, I am sure. The new HARP mortgage program specifically has no loan-to-value restriction so that homeowners in Florida, California, Arizona and Nevada can take advantage of it. You can have 300% loan-to-value and still be HARP-eligible. HARP is now unlimited LTV for fixed rate loans with 30-year terms or less.

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.

Will my home require an appraisal with the HARP mortgage program? Sort of. Although your home's value doesn't matter for the HARP mortgage program, lenders will run what's called an "automated valuation model" (AVM) on your home. If the value meets reliability standards, no physical appraisal will be required. However, underwriting can require a full appraisal to make sure the house is "still standing".

Is HARP the same thing as an FHA Streamline Refinance? No, the HARP mortgage program is administered through Fannie Mae and Freddie Mac. FHA Streamline Refinances are performed through the FHA. The programs have similarities, however. Does Ginnie Mae participate in the HARP Refinance program? No, Ginnie Mae does not participate in the HARP Refinance program. Ginnie Mae is associated with FHA mortgages -- not conventional ones. HARP II is for conventional mortgages only.

My current bank says that they're the only ones who can do my HARP Refinance. Is that true? No, that's not true. Or, at least it shouldn't be. There are very few instances in which a HARP applicant will be precluded from shopping for the best deal. It's doubtful that your situation is one of them.

My current mortgage is with [YOUR BANK HERE] and I don't like them. Can I work with another bank? Absolutely! Call Chris Bang @ 602-494-5005 for personal assistance with this loan.

I put down 20% when I bought my home. My home is now underwater. If I refinance with HARP, will I have to pay mortgage insurance now? No, you won't need to pay mortgage insurance. If your current loan doesn't require PMI, your new loan won't require it, either. I pay PMI now.

What's the biggest mortgage I can get with a HARP refinance? HARP refinances are limited to your area's conforming loan limits. In most cities, the conforming loan limit is $417,000. However, there are some cities in which conforming loan limits are as high at $625,500.

Can I "roll up" my closing costs with a HARP refinance? Yes, mortgage balances can be increased to cover closing costs in addition to other monies due at closing such as escrow reserves, accrued daily interest, and a small amount of cash. In no cases may loan sizes exceed the local conforming loan amount.

For how long should I lock my mortgage rate via the HARP Program Lock for 45 days, at minimum. This is because the HARP mortgage program, while streamlined for simplicity, still has some grey areas that can lead to delay. It's better to have a rate lock that lasts too long than not long enough.

How do I apply for the HARP program? In Arizona call 602-494-5005. In California call 916-678-4200.

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