HARP 3.0
What is HARP 3.0?
Home Affordable Refinance Program for non Fannie Mae or Freddie Mac borrowers.
The Obama administration may be unveiling a new variation of the HARP program as early as next week.
On Tuesday, President Obama called on Congress to pass legislation that will give all borrowers who are current on their mortgages the opportunity to refinance.
The cost of this proposal will be fully offset by the President’s Financial Crisis Responsibility Fee
HUD Secretary Shaun Donovan
The new proposed HARP 3.0 builds on the momentum of the HARP and HARP 2.0 programs which were revamped last year to help millions of additional underwater home owners in the United States. Guidelines such as loan to value, income requirements, and in home appraisals are being streamlined so that home owners may refinance at today’s low interest rates.
The new program should have all the same benefits without requiring that the existing loan be owned by Fannie Mae or Freddie Mac.
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Comments (64)
Add credit card debt amunot to new home purchase?I have about 25K in credit card debt. I am planning to buy a 540K house. Currently I have great credit, is it possible to add my credit card debt into the home loan in order to make it a single monthly payment. What is the loan program called? I am shooting for 5 yr. ARM. Me and my wife plan to live there for about 3-4 yrs.To add I mean to pay off my credit cards with the home loan.
As far as advantages go:*There’s less prearwopk that needs to be provided on your end*You may qualify for a loan that you wouldn’t have before if its a no income/no ratio stated program where a income/asset information is not given on the applicationDisadvantages:*With the market being in its current slump, Underwriters are taking a hard look at stated loan applications and nit-picking them to death*If an income grossly higher than what you make is stated on the application in order to get you the mortgage, and you default, odds are Underwriting and the legal team for the loan company is going to take a look back over your application. Once you sign on the dotted line that everything on an application is correct to the best of your knowledge, regardless of if you looked at it or not you’ve committed financial fraud the same as the loan officer that worked up the application. This is a felony and they can prosecute you
I doubt there is a loan program arunod right now that will lend over 100% of the homes value on a home purchase. You can sometimes get them on refi’s but they are usually loans that are attached to some type of construction or major improvements.Value is determined two ways:In a purchase, the Purchase price or the appraised value- whichever is LESS.In a refinance- the appraised value.If this is new construction, the home is probably worth alot more now than when you purchased it. You should have a lot of equity.Right now, prices are not going up as much as they were, so if this is existing construction, you may have to wait a few months until you have enough equity to pay off the debt.If you have cash in the bank, try to pay off that debt and get a second mortgage instead of putting that additional money as a down payment.You can also wait until you close your loan and refinance with a second mortgage paying off your debt- provided there is enough equity in the house.Sorry to burst your bubble, but let me show you from a lenders perspective.You have $25,000 in Credit Cards and the average interest rate is probably 15% or greater. You are buying a house that the value is $540K, you want them to lend you $565K for a house they know is only worth $540- at an interest rate of about 6%- less than half of what you are paying on the credit cards now.If you were to default on the loan, you get to take all the furniture, clothes, handbags, etc that you paid for using the credit cards, however they can only reposess the home that is worth $540K. If they sell it at auction for the full price of $540 (which is doubtful) they would be at a loss after the Realtor takes the standartd 6% commission (approx $32K). That leaves the bank with getting $508K for the house at best, before fees. This is obviously not a favorable investment for them.
From what we are hearing the harp 3.0 has not been released yet we are still waiting on the news ourselves. The Harp 2 for Freddie Loans just got cancelled so were hoping this takes over.
Anyone know if there is any help for people with HSBC home loans? My home was purchased for 85,000.00 in 2006 and now is worth 60,000.00 but I owe 75,000.00.
is this program started or what?
Chase is servicing your loan, but it still can be secured by fannie or freddie. You need to go to their respective websites to see if your loan is secured by either.
Is the HARP 3.0 program a myth? My bank (Indymac, Inc.) has no idea about it when I called to apply last month and beginning this month too. They tell me they are just getting the guidelines for the HARP 2.0 program. They are now offering me a loan modification packet that hasn’t arrived yet. Once filled out and returned that takes 30 days minimum to process for the decision if I qualify or not. I just refinanced another property on a VA Streamlined URRRL loan. That took only a month and went through just fine. The credit union loan officer that I worked with for that refinance also hasn’t hear anything about the HARP 3.0 program. Anyone out there in refi-land know anything substantial about HARP 3.0? Does it really exist?
What are the income verification guidelines for HARP? We have NEVER been late on our mortgage. We own our own business and went thru original govt refi program just to lower our interest rate…we did not want money…just lower payment. To shorten a looong story…we were not able to process the loan because, after providing everything but our DNA, it was still NOT ENOUGH to prove our income. We have a flow thru, S corp, so our personal and business funds get intertwined. I provided copies of EVERYTHING…but it was not enough because a transcrip of our 2012 taxes could not be verified because we owe money. SO…MONTHS of time, effort and energy, trying to get the loan approved….with no result!
What are the guidelines for this new HARP 3 program regarding income verification? Isn’t there a streamlined process…like that of an FHA loan?
When will harp 3 start? Or is there going to be a harp 2.10
So, with the Harp 3.0, can people refinance just their 2nd mortgage if not owned by Freddie or Fannie? 1st Mort. is owned by Freddie. Possibility of refinancing them together?
Is there any possibility of HARP 3.0 moving the June 2009 deadline for eligibility? This seems like it leaves alot of people out (people who are in need of this program).
This program is unfairly working against borrowers with newer loans. PMI is a joke any way. I am paying the penalty brought on by crooked lenders and idiot borrowers who bought houses they knew they could not afford….ridiculous.
I owe $2000,000.00 with Chase always been chase ; No Freddie of Fannie just called Chase they still are not working with HARP 3.0
Chase is servicing your loan, but it still can be secured by fannie or freddie. You need to go to their respective websites to see if your loan is secured by either.
I presently have a 6.124% condo loan. I have previously filled out all the paperwork for WCS lending and thought i would get approval for a 3.8% but their loan officer had a problem with my condo to apartment percentages in the development. Not sure what that means but my developer/property company could not provide the information. No i’m trying to work with a SunTrust agent wrt the HARP 3.0 program but he says “the software for the new HARP will not be available until end of March 2012″.
Any advice?
Am trying this now, will update with results
Who did you find that’s actually working this program?
I have LPMI and was offered 4.375 for 15 years. Not sure all of the details yet. I have a 108%ltv, coming off a 6.625 30 year. Loan is ownd by freddie, serviced by bmo harris, refi through harris
I have LPMI and was told by my lender I do not qualify. Loan is owned by Freddie My question is who is doing the loans with LPMI ?
no one
Will the eligibility date for a HARP refinance ever be extended past May 31, 2009? I missed the cut off date by 60 days. Thanks
I purchased my home 16 years ago and we made due never buying a “better” house I choked down extra mortgage payments by working sixty hour weeks 31 weekends a year.owe 30k worth 150k Money in 401k college funds (so I get to pay full boat tuition) So much for following the rules. Would I trade places? HELL NO
yes, i have had some late payments due to the fact that i am financially strapped at this payment. was told by “harp” and “mha” that i did not qualify! what / where can i go ? help
the Homeowner’s HOPE™ Hotline 1-888-995-HOPE (4673)
I e-mailed Chase to re-fi under HARP in early January. Owe $266k, worth about $220k, no missed payments. Got a form letter saying I didn’t qualify. I replied back via e-mail. A few weeks later, about two weeks ago, got a call saying I do qualify. Offering 4.8% via HARP, but 4.1% for “regular” re-fis. Also, want me to pay a (small) fee for that rate.
I have my mortgage currently with Popular Bank of Puerto Rico, and my morgage start before May 2009, but is owned by Wells Fargo will I be eligible for HARP 3?
You may want to check out CitiMortgage. They just started a new HAR Program January 1 to help people whose loan had pooled PMI without their knowledge and had never paid any PMI.
I checked them and they were worthless. I have over an 800 credit score and have been paying on my mortgage for over 7 years on auto deposit so nothing is late. I have no second mortgage. My mortgage amount is $180k and unfortunately they value my home only at $212k. Because my mortgage was purchased by them instead of originated by them. They say I do not qualify for HARP. I paid $255 for my home in its hay day of inflated mortgage values putting $50,000 cash down. The responsible thing to do right? Wrong. I lost $93K in value. Do I qualfy for a refinance? Only if I pay $5000 in closing costs and pay my house down to a 80% Loan to value or $169.6K. So I would have to come out of pocket $42.4k for a 1.88% reduction in my loan rate. It’s insane. I’d save what $200/Mo for a 15 year loan. They are all thieves.
Chris,
Maybe I can be of some help to you. You should either qualify for the HARP 2.0 or 3.0 (if it gets approved by congress) and you will be able to refi with reduced costs to get your rate down, let me know if I can help in any way
i am in the same boat with Chris any updates on the Harp 3, I have tried every lender i can think of and with no help.
I am now told by BOA that although I fit all the criteria for the Harp 2 program – I do not qualify because I had a no closing cost loan originally. I approached Wells Fargo and they said I do not qualify because they can only re-write their own loans at the moment. I think BOA is doing everything they can to prevent people who are current with their mortgage to get a rate adjustment. Nowhere in the guidelines do I see that if you had no closing costs that you will not qualify – Can someone please clarify this???
This makes ZERO sense. When was your original loan recorded? What is the current rate?
Recorded in 2008, owned by Freddie Mac @6.375% – I think is is bull*****
they have you locked into a higher rate loan which they know you will pay due to your past history so they are trying to avoid giving you a lower rate (cause then they lose money) dirty as it sounds, but this is happening a lot
Recorded in 2008 and owned by freddie mac – BOA say that because there was no employment verification or fees paid I am not eligable. Work that one out……..
Email me, I can look into this further for you and give you the correct explanation. What you have been told does not make sense. You may not be eligible, but it shouldn’t have anything to do with no fees paid last time. I am a loan officer at BofA.
BofA said we didn’t qualify because we only put 10% down. But every lender has their own in house regulation according to HARP program who I called to talk to. So,I called many lenders who are willing to refinace with HARP some have certain criteria that we qualify for and some we don’t. One said we owned to many properties to qualify.
I closed on my property on May 1st 2009. Chase bank told me I was not eligible because my mortgage was not done, or transferred before May 31st. Is there anything that I can do? I feel this is unfair to the home buyer.
Thanks for your help!
This is unfortunately true for now. I have seen many homeowners fall into this scenario. You will potentially be elig for Harp 3.0
My mort is with Wells Fargo. I qualify for Harp 2 but then keep being informed by my mortg per I don’t. Rule is if your loan is done before 5/2009 you fit into the guidelines. My loan was guarateed by Freddie 3/1/2006. but they say no. So now for Harp 3 you can’t be backed by Freddie Mac so where do I stand. can’t under Harp2 or Harp3 It just doesn’t make any sense to me. Something is not right…any thoughts~
Tricia
The date your loan was originated is not the only factor in eligibility. Check around not all mortgage companies are created equal.
Is there any chance of get rid of PMI in HARP 3
Bla bla bla….I keep seeing moving lips but no action being done….What’s going to happen with my Underwater 5/1 ARM due to reset in two months and my loan is NOT owned by either Fannie or Freddie?
Have you contacted your current lender? Call them and see what they will do.
Calvin, I have copied something off the Wells Fargo website relating to the atty general settlment of loans…this should be very helpful to all that are not backed by Freddie or Fannie..this pertains to Wells Fargo but maybe your bank is part of this settlement. GOOD LUCK!!
Q4: How will I know if I qualify for the refinance program?
The vast majority of our customers can qualify for one of our current refinance programs, so you should not delay visiting or calling one of our branch offices to talk to a home mortgage consultant to learn more. Even if you start a refinance in advance of March 1,
if you meet all of the criteria below, we will notify you and then move you down the
refinance process for the Attorneys General settlement.
If you meet all of the following eligibility criteria, you will receive a letter in the weeks following the March 1 start date of the expanded program:
• You are current on your payments, with no delinquencies in the last 12 months
• You owe more than your home’s current market value (a loan-to-value ratio greater than 100%)
• Your loan was obtained prior to January 1, 2009
• Your loan must have a current interest rate of 5.25% or higher
• Your loan balance is no more than $729,750 (for a single family dwelling) in any
of the 50 states and within the highest of the 2010 Fannie Mae/Freddie Mac limits
for two-to-four family homes.
• Your loan is in a first lien position (it is not a second mortgage), regardless of property type — primary residence, second home, or investment property
• Your loan has not been modified in the last 24 months
• Your loan is serviced and owned by Wells Fargo — that means it is not an FHA, VA, Fannie Mae, or Freddie Mac loan, nor is it a loan owned by a private investor
After March 1, a Wells Fargo Home Mortgage consultant will be able to determine your eligibility to refinance
Your 5/1 arm will most likely go down in rate.
What about having a VA 1st at 4.5 and a 2nd at 9.49 with a private investor group. Can loans be combined into one low interest loan? Problem is that new banks say they need a copy of a subordination agreement that was signed but neither 1st or second will give it to me. What to do to force them. All I get is a runaround from both.
You should have a copy in your closing papers, but if not, contact the attorney–or title company who closed the loan. They keep a copy of everything. I am not sure VA is going to be willing to add to their risk by blending the loans though. Depending on your equity, you should contact either your local Credit union or USAA( for vets) and see if they can help by refinancing just the second. Your first mortgage looks good.
William the short answer is you cannot combine the loans with the VA if your house is underwater. “Technically” Va allows for cash out to payoff the second to 100% but I haven’t heard of anyone offering 100% VA cash out loans for 3 years. My guess is the best you will find is 90%. Thats the bad news. The good news is you already have a 4.5% interest rate! Wow, that is awesome, not much worse than todays going rates. Specially since VA rates tend to be .125- .25% higher than other loans.
What about a loan that was closed on after June 1, 2009?
i was told by bb&t that they would not refinance our loan with the harp program, even though it is owned by freddie mac, because it was a CHIP loan. Is this a valid reason to deny us?
Yep, it is in the guidelines. They will change the dates on the guidelines, but it will likely take the next HARP legislation…
I also had BOA and now M&T. House 100K owe 174K Qualify for harp.
Called M&T was told to call back in March. Can the banks charge any interest rates that they want and if so, can I negotiate with other lenders?
The HARP mortgage program is open to all lenders, which provides competition in the market so shop around.
Sam is right, but they might not have the same access and might still need to get an appraisal which would sink your ship. Make sure you get the details even if the rate seems great.
Tina- ask your lender–there is a VA streamline refinance available now….check into it…
i sure hope this is true i am frustrated with of all the prog for fannie and freddy and none for FHA.
Schip FHA does have programs. The Streamline refi. Check with a local lender non-bank for the best deal. Big updates but it depends on when FHA insured your loan. If it was after June 1 2009 apply this month, before April 1st or you will pay more for FHA insurance. If it was before June 1 2009 wait until June 11, 2012 and your cost will go down.
We are very interested in the HARP 3.0 program if our loan does not have to be owned by Fannie Mae or Freddie Mac but, will we be eligible if our loan is owned by the VA?
i really hope that they will do this
When are they going to take away the MI requirement on the HARP? They are may people who bought their houses with a Lender Paid MI and even though their loan is owned by FAnnie Mae, even though they have never paid monthly PMI, they are turned down due to their loan being a LPMI loan….can this ever change to help out a lot of people on this type of loan program?
Who is your current mortgage with?
Vic there are a few lenders doing it if you have lender paid MI LPMI. If your loan was pooled when sold and they added “credit enhancement” insurance then that is different and you would not qualify.