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 (33)
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.
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*****
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.
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~
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
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.
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.
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?