Current Mortgage
Is my current mortgage eligible for the HARP refinance program?
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If I refinanced on or after June 1, 2009 am I eligible for HARP 2.0?
No. If the existing loan was not acquired by Fannie Mae before June 1, 2009, it is ineligible for HARP 2.0. In March 2011, the initial cutoff date of March 1, 2009, was extended by three months to June 1, 2009, and this revised deadline is still in effect.
If I am currently in a modification program can I apply for HARP?
In general, if you meet the requirements for a modification program such as HAMP, you will not be eligible for HARP 2.0. A modification program is intended for homeowners who cannot meet their current mortgage payments and are at risk of foreclosure. HARP, on the other hand, is intended for homeowners who have not been able to refinance at lower interest rates because of their homes' falling values.
However, some struggling borrowers may have entered HAMP on a trial basis in anticipation of greater hardship or default. If their circumstances have since improved and the HAMP trial modification was resolved, and they meet the current eligibility requirements, they may be able to refinance through HARP.
My home is currently listed for sale. Can I still apply for HARP?
Yes. Although Fannie Mae policy prohibits the refinancing of homes that are currently listed on the market, this policy can be waived for Refi Plus transactions (manual or DU).
Can I combine my second mortgage into the refinance?
No, the second mortgage may not be combined with the first mortgage into the new refinance. No HARP refinance may include a cash-out component, except for closing costs and allowances on certain amounts such as insurance costs, property tax bills and association fees.
Is a loan in an inter vivos revocable trust eligible?
Yes, if the existing loan was originally closed in the borrowers' names and was then transferred to an inter vivos (i.e. living) revocable trust, the loan is still Refi Plus-eligible. The only allowed parties to the trust are the borrowers on the existing loan. See Fannie Mae's guidelines to make sure the trust abides by all standard requirements.
Can I resubordinate my second mortgage?
Yes. Resubordination can be done as part of a DU Refi Plus transaction, as long as it is not used to pay off the second loan or acquire new subordinate financing.
Should I use HARP 2.0 or HAMP?
The Home Affordable Refinance Program (HARP) is intended for those homeowners whose homes have lost value, and therefore have not been able to refinance at low mortgage rates. On the other hand, the Home Affordable Modification Program (HAMP) targets borrowers who are in default or dangerously close to defaulting by helping them to avoid foreclosure.
To be eligible for a HARP refinance under Refi Plus, the borrower must:
- demonstrate an ability to meet their monthly loan payments and be current on the existing mortgage
- have no record of delinquency over the last six months, and no more than one 30-day delinquency over the last 12-month period.
Do all existing borrowers need to be on the new loan?
Existing borrowers may be removed from the new loan on a Refi Plus transaction, for any reason, as long as the following conditions are met:
- the lender can demonstrate that the borrowers who remain on the loan have made loan payments over the past 12 months from their own funds; and
- the borrower to be removed from the loan is also removed from the deed.
What types of loan does a HARP refinance allow me to get?
A HARP refinance allows you to readjust your loan to a more stable product. The following examples demonstrate some of the most common refinance transactions under HARP:
- Refinancing a mortgage loan that includes an interest-only provision into a fully amortizing mortgage (that is, a mortgage that includes amortization of principal as well as equity accumulation)
- Refinancing an adjustable-rate mortgage (ARM) into a fixed-rate mortgage (FRM), and thus preventing the possibility of payment shock
- Refinancing an existing ARM into a new ARM that has a fixed introductory period that lasts five years or longer and is no less than than that of the existing mortgage, thus preventing the oncoming payment shock and extending the initial rate period
- Refinancing a 30-year FRM into a new FRM with a shorter term, such as 25, 20 or 15 years (to build equity and allow for quicker amortization of principal).
Do high-cost area loans and jumbo loans qualify?
Yes, mortgages in high-cost areas and jumbo mortgages do qualify for Refi Plus refinance. These loans can be delivered through a high-balance loan option. All current loan limits apply. The "permanent" limits on high-balance loans apply to any Refi Plus loan whose note is dated October 1, 2011 or later (as the "temporary" limits on these loans expired on September 30).
What if I have a subprime or Alt-A loan?
An existing subprime or Alt-A loan that is backed by Fannie Mae can qualify for refinance through DU Refi Plus, but not through Refi Plus manual underwriting. Your may wish to contact lender to have them provide you with other refinance options if your loan is a subprime or Alt-A loan and thus does not qualify through Refi Plus.
Do I have to use my current lender with HARP 2.0?
If you are applying for a DU Refi Plus loan (HARP 2.0), you may choose any lender you wish or select the existing servicer to originate it. (This flexibility is due to the fact that DU automatically determines if the investor on the existing loan is Fannie Mae, even if you don't use your current lender.) On the other hand, manually underwritten Refi Plus loans have more limits and can only be originated by the server of the existing loan.
How does my lender calculate payment increases on an ARM or pick a payment loan?
If the ARM is in its initial-rate period, the lender will compare the new principal and interest with the ARM's initial rate. However, if the ARM is in its adjusted-rate period, then the lender will compare them using that adjusted rate.
If the loan comes with multiple payment options (such as negative amortization), the seller should go by the lowest payment option in order to see if the increase will be greater than 20%.
Are balloon loans and ARMs eligible?
Balloon loans and adjustable-rate mortgages (ARMs) that have a convertibility option are eligible for refinance under DU Refi Plus and Refi Plus, but only if they meet one of the following conditions:
- the borrower has not elected to make a conditional right to refinance in the case of a balloon loan, nor exercised the conversion option in the case of an ARM; or
- the borrower has elected the conditional right to refinance or the conversion option, and had the loan redelivered to Fannie Mae before June 1, 2009.
What if my mortgage is not with Fannie Mae or Freddie Mac?
If your loan is not held by either Fannie Mae or Freddie Mac there may be other programs still available to you. If you would like to speak with a counselor about available programs, call the Homeowner’s HOPE Hotline 1-888-995-HOPE (4673). The Homeowner’s HOPE Hotline offers free HUD-certified counseling services and is available 24/7 in English and Spanish. Other languages are available by appointment.
Comments (23)
Keri
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I bought a condo for $123,000 in 2007 at 6.875%. It is backed by Fannie Mae. Since then its value has deprecated with many people around foreclosing or having short sales. I have made good on my mortgage and have never missed a payment on anything in my life! When I heard of this new program I was delighted that I could finally do something about it, and not have to ruin my credit as many of my neighbors have done.
I began the refinance process at the end of March with Maverick Funding, after going through it all on June 12th I was told that I couldn’t qualify because my appraisal had came back with a value of $60,000.
As advised I then began to try it through my current lender which is Sovereign Bank. We went through the whole process yet again, I got an appraisal again, this time it came back at $58,000. Fanny Mae is now saying I am not eligible due to my loan to value.
I was under the impression that this Harp 2.0 program is for someone that is making good on their mortgage but find the value deprecating around them. Am I wrong?
It seems to me that I am stuck between a rock and a hard place because I really don’t want to ruin my credit but it seems as though the banks would rather see me walk away from this mortgage than to let me refinance at a better rate. Any advice?
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Ben
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Go to a Mortgage lawyer that deals with this.
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Jhoan
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I have a jumbo mortgage and owned or backed by Fannie Mae (I checked their website look up). Is this still mean that I am not qualified to refi under HARP 2.0 because of my jumbo mortgage? I don’t understand because Fannie owned my loan and I bought my house 2007. I applied at Wells Fargo and all they said was I was not eligible for some reason. According to the person I dealt with at Wells Fargo I met all the requirements and I have an excellent credit score. Still they didn’t know why I was not eligible.
Or is this because I tried to apply the HAMP before? But I was not qualified with that either according to BOA. BOA flatly turned me down. I don’t understand with all this help from the government.
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cliff
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I bought my home in June 2006. I put 20 percent down, and another 10,000 on the principal for the next couple of years. I had an interest only loan, and the value of my home dropped and I owe about 70,000 more than what it is worth. I did get a loan modification about 2 years ago, at a very low interest rate for 5 years, but at the end of 10 years, the interest rate will be 5.25 percent and I will probably still be under water. Is it possible for my loan to be included in this new program for underwater home owners. I am current on my payment, and never been late.
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Tony
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I have a FHA loan and purchased in 2008 for 145k its value is now approx 80k, I have 6.0 % and been denied several times for HAMP, or Remodification, reasons were debt to income ratio. I purchased in my name only prior to getting married , I cant use my wife , as her credit is low FICO,due previous divorce. I make less than when I purchased the home. Any help will be appreciated
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Larry
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We have a BofA mortgage refinance in 2010 @ a Apr
rate of 4.75. All payments up to date with a 13 payment each month scheduled. I would love to take advantage of a lower interest rate.A savings of over $200 per month.While not having to go through
the cost of a total refi.Our homes value has dropped in value over 200M. Hope to hear from you Larry
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Janet
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Who do I contact to see if I qualify
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Barbara Leithead
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I filled out the form under the Harp Program. I didn’t qualify but no explaination. My current mortage is $48,000 but the value is only $40,000, per my mortage company. The scales on the form don’t go that low. Is there a phone number I can call to talk to someone?
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Deborah
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I would try the HOPE and ask them.
You will need Monthly Mortgage, Taxes, Insurance.
Hope this helped.
1-888-995-HOPE (4673).
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Louise
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I have a BOA loan and qualify for the HARP program, however BOA have just told me that because I had a no closing cost mortgage originally I do not qualify. Is this true?? Has anyone else been told this??
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Mindy
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I do HARP loans in Maryland, Virginia, D.C., Delaware, Pennsylvania, and No Carolina.
Also, FHA and Va streamlines. Please contact me if I can be of help to you.
Thanks,
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Mason
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Bought our home in April 2010 and would really like to refinance with the Obama (HARP) but called and was told that I didn’t qualify because it had to be before 2009. We fell on hard times due to
my husband changing jobs and paycheck deduction. Please if anyone knows anything please help.
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Oksana
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Hi Louise,
I have the same situation, and BOA keep telling this restriction will be removed soon. I hope! I will contact them tomorrow. Please let me know if you have some new info from them.
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JANET
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I have a mortgage with Bank of America to which I applied for a modification. They have been asking for the same document for the past 3 months. I am current on my mortgage and for the first time I will be behind in my Real Estate taxes. My interest rate is 6.25% and have almost exhaust all my savings trying to keep up. How do I find out if my mortgage is backed by Freddie Mac or Fannie Mae?
Thanks for your response.
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Dave
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Vera… ours is Citi too but it is BACKED by Freddie. Check and see if yours is too – it just has to be BACKED by Freddie Mac.
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Kelly
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Vera J – just because your lender is CitiMortgage doesn’t mean you don’t have a fannie or freddie. Our lender is Wells and we had a freddie mortgage – freddie and fannie are governtment mortgage backers – they back the loan company writing the loan. Call CITI and ask if you have a freddie or fannie.
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Patricia
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I have a VA Loan,my home value is lower than my mortgage,how can I lower my mortgage interes rate? Now I am paying 5%.
Thank you
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Doug
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what state are you located in? I may be able to help you with the VA loan. shoot me an email with the state you live in so I know if I can help you.
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Chad Dillon
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I live in Virginia and have a home that is worth less than my loan balance. I have a VA backed loan.
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dale
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Do you have a VA loan or are you Va eligible?
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Steffi
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Wowza, problem sloevd like it never happened.
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VERA J.
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THE HARP PROGRAM SEEMS TO BE WHAT WE NEED FOR REFINANCING OUR HOME. UNFORTUNATELY, OUR LENDER IS NOT FREDDIE MAC, OR FANNIE MAE. OUR LENDER IS CITI MORTGAGE.
DO WE HAVE ANY OTHER ALTERNATIVES TO GET ANY OTHER LOW INTEREST RATES REFINANCING, MAYBE AROUND 2%, 2.94%. WE ARE CURRENTLY AT 6.5%. PLEASE HELP. THANK YOU ALL. LOVE, PEACE, AND JOY!!!
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Carmen
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I also have CITI and I have Freddie Mac behind my loan and according to CITI, I do not qualify. But according to this Website I meet all the requirements. I honestly think that CITI is full of it! I think that it does not benefit CITI for me to get a Refi. through the HARP Program and that’s why “I don’t qualify” I just called 888-995-HOPE according to the HARP program representative someone will call me back and help me out. Wish me luck!!! Keep you guys posted.
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