New Harp Mortgage Program Guidelines
Announced by the President, October 24, 2011, the Home Affordable Refinance Program has been updated allowing more homeowner’s to take advantage of the program.
This program, which is part of the federal government’s Making Home Affordable Program, is intended for homeowners whose loans are owned by Fannie Mae or Freddie Mac and whose homes have minimal or no equity.
The New HARP Mortgage Program Guidelines have several benefits for home owners:
- The program has been extended until December 31, 2013.
- The maximum Loan to Value (LTV) cap has been removed on home owners looking to refinance in to a fixed rate mortgage.
- However for homeowners looking to refinance in to an adjustable rate mortgage the maximum LTV is set at 105%.
- The appraisal process has been streamlined; in cases where an Automated value can be determined an appraisal would not be required.
- Each mortgage lender will enact its own schedule for implementing these enhancements. Lenders should receive instructions from Fannie Mae and Freddie Mac before November 15. Several lenders could begin taking in mortgage applications under the new enhancements by December 1. Other lenders will need extra time to accommodate the changes. Enhancements such as the ones affecting delivery of loans with LTVs above 125% should be in effect by the first quarter of 2012.
(197 votes, average: 3.13 out of 5)
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Comments (830)
I’m super confused by one thing – if you qualify for the HARP refi, how is the rate set? Here’s my story. My Fannie Mae loan is serviced by Seterus. We owe about 210k on a house worth around 180-190k. I’ve been getting mailings from Quicken Loans, who apparently is working with Seterus for HARP. I called Quicken last night and they offered me a 20 year loan at 4.75%. The broker was super pushy. He said he needed a commitment today, less than 24 hours. I told him I needed to do more research and couldn’t commit in that timeframe and he pulled the loan offer and claimed I am “exempt from the program moving forward”. I’m a bit stunned by all of this. Is this some sort of sales tatic, or can I really be blacklisted like this for needing more time to decide? He told me there is no way I will do better than 4.75 because the rate is set by Fannie Mae. Is this true as well? I’m really confused… And now a bit scared as well…
I would go with another bank.This loan officer is giving you false information. your current bank should be able to help you refinance with lower closing costs.
Not true, just locked today at 3.275%. That rates seems high. Just call another lender, shop around for best prices…check local banks, the fees are what you need to look at in addition to just the rate. Hidden fees will kill you. Stay away from mega monster banks, the fees were more than $1500 higher in my case.
Good Luck!
Don’t be fooled by Quicken loans, this is a sales tactic and you can do much better than 4.75% on a 20 year. You are not blacklisted because you did not give them an answer. I would shop around more, if you are in Wisconsin I would be more than happy to help you out!
NOT TRUE!!! There is no time frame to decide. Email me if you want honest answers. Been in the business 20 years
My husband and I are looking to refinance our condo in Maryland, bought for $209,000, currently appraised at $130,000. We still owe little less than $160,000 on the current mortgage, owned by Fannie Mae and currently serviced by Seterus. We also have PMI, since we didn’t put down 20% at the time of purchase.
I just received this email from a lnder I contacted :
“We cannot do a refi under HARP guidelines for you and that the only company that can is your current loan servicer. The reason is that they are allowed to keep the original MI certificate whereas other lenders (like me and Wells) would have to get new MI based upon a new appraisal and your property will likely not appraise anywhere close to what it would need to be.”
Is this correct?
We are at a wits end here. Getting rid of our PMI is virually impossible, since we do not want to pour anymore significant money into the mortgage to get down to 78%, which I have been told we need to have the PMI cancelled.
Any suggestions? We would be very grateful for any feedback.
I am currently in the same type position as you are, home purchased at 214k owe 150k and I was told by quicken loans (joke of a company) that Fanny may estimated the value of my home at 87k. Now I have a family member who works for Fanny may in DC and he told me that the 87k value is not listed by them. What some companies are doing is taking previous sold properties in the area and comparing them to your property. I live in the Detroit area and everything sucks here. I was informed today that with HARP 2.0 that it does not matter how upside down you are. You need to just call around and find someone who will work with you. It is very time consuming but worth it. I will save almost 400 a month going down to the prime rate. As for Seterus they are a joke and are not willing to help, they told me over the phone that they are in the business to make mo.Wu so why would they want to drop my interest rate. Plus read the back of your bill. It states right there that they are a collections company not a true lender. Good luck and just keep on it.
There is no PMI with Harp. They want you to think you are stuck with that and them. Shop around. You do not have to go with your current lender. Your property has to be within 150%, this # has changed. Try a local bank, stay away from the large banks, the fees they charge are insane! You are who this Harp program is for…..
I live in CA and am upside down 200K between first and second. I just locked my interest rate today 3.275!!!!
Good Luck
we appear to qualify for harp, have original morgtage with citi. they’re now saying we have to show $250K is assets with them in order to qualify for harp 2.0. others that have gone through process with citi didn’t have ANY accounts with them and it went through. any ideas?
Shop other lenders…..that is you have to show you can pay the mortgage, but to qualify you have to be current, so you must be able to pay. I am not happy with all the hoops that I am jumping thru to get this Harp, it is not easy and requires a whole lot of paperwork!
This is a new one! As long as you show income on your tax returns you should not have to verify this much in assets. Harp 2 allows for higher debt ratios than conventional financing (up to 68% with my company)
I live in Florida and I am trying to work with my current lender Third Federal Savings & Loan for a HARP2 – I have a Fannie Mae. My current loan balance is $ 361,265 at 5.5%. I have been paying on it since 2004 and have not missed any payments. Current value of the property is @ $275,000. I do not escrow the property tax and home insurance but pay them on time every year. Third Federal is offering me a $361,265 loan at 4.321% fixed for 30 years. However they require $10,800 in fees to process the loan – this seems very high. They require me to escrow the property tax and home insurance for the new loan and will charge me $ 4,130 to set up the escrow account – it is part of the $10,800 mentioned earlier. Can they require me to set up an escrow account & can the processing fees be waved? Costs seem very high – should I look elsewhere?
I just tried a refi through The Bank of England, in England, Arkansas. Everything was going perfect and I was approved until they discovered that my present mortgage has PMI. They said it can’t happen with a loan presently having PMI with it. Sounds weird to me.
What are the new requirements for occupancy under HARP?
Can be owner occupied, second home or an investment property.
I found out today that I’m approved for a harp 2 refinance YAY! Paperwk and appraisal pending but I’ve done my homework and don’t expect problems. I have a quick question….if I didn’t have to escrow before, do I have to now? I did go thru a new bank and they are saying I do. I thought I read somewhere that I didn’t but now can’t find that. Anyone know for sure…and if I don’t, where is it written etc. I’m very happy with my new rate & less yrs 3.25/15 yrs vs 5.625 for 23 remaining, but escrow is bugging me. Anyone know?
And for those looking into this…do your homework, read up on the program, get documents together, call the approved lenders & know comps in your area. Get a good handle on everything, be prepared… and keep trying…it’s worth it!
how do I even start? caling my mrtgage bank?
Is it true that lenders are required to charge a 1.25% loan origination fee on loans with a LTV ratio over 105% (loans backed by Freddie)?
This is not true, I would keep shopping!
this is possible if you orginally bought a home for 504000 and the value is 395 you can still refinance
Most mortgage companies can refinance under this law. Any current lender will not want to refinance because they will lose money to offer you a lower interest rate.
what are the limitations on a refinance fanny mae harp 2.0 loan as to income and 4 month old chapter 7 bankruptcy .
Anyone have experience with a recent BK and the Harp with Freddie Mac?
Has anyone actually closed on a HARP 2.0 loan where the LTV is greater than 125%?
Yes, Fannie 136/186 LTV/CLTV
My current mortgage servicer Greentree does not have a licence to refi loans in NYS. My loan is own by Fannie Mae and the LTV on the property is upside down. I called a few banks and was told they only work with their current clients. Do you have any suggests?
what are the new requirements for occupancy under HARP?
I trying to refi my home in new jersey with harp. My lender approved the loan but I was denied because my pmi company isn’t on the harp list. I’m assuming I’ll get the same results with other lenders as well. Are there any options for me? Is it possible to change pmi companies?
Jason there are lenders that will take any Mortagage Insurancecompany as long as the current MI company will transfer the current MI to the new loan.
I am working on a loan now with MI and the MI company is no longer even iussing new MI policys but is willing to tranfer the exiting MI.
It looks like we are going to qualify for a Harp 2 loan, we have applied with Regions and Wells Fargo, we aren’t increasing our principal, simply lowering rate and therefore, payment. Our current 2nd (equity line) holder faxed over a “modification” agreement for our current equity line INCREASING our floor rate 2% and wanting us to sign it quickly before any harp 2 gets approved. I can’t find any info regarding the conditions of the Subordination, do they really get to modify the term of our 2nd? This has no benefit to us, only the bank.
I’m just doing a HARP through Wells Fargo and have a second at Bank of America. The HARP program has nothing to do with the second mortgage…don’t sign anything if you like the 2nd the way it is. It has no bearing on whether you will get your HARP loan.
Kim, subordination is only where the second holder wants a guarantee that if the first goes sour they get paid first. At present we are trying to do a harp with our current mortgage holder GMAC. Have gotten the run around on information. It was approved and were told it went to funding but then the hold up was our second who is SLS. Before they could finish anything they needed a zillow report which is just a generalized report of property values in our area. GMAC which is a home loan co. said they couldn’t provide that, we had to. email me for more info……
im in the process of refi with harp but the agent now says the harp requires the escrow in the mortgage payment i have always paid it on my own and i do qualify for harp is this true he said they just changed that requirement this month in april 2012
Thats State specific. In CA if your current loan dosent have Escrows your new loan isnt required to have them.
Trying to work with Sun Trust w/Harp – have a Fannie Mae. Current principle bal $86,838.78 (being paying on it since 2004) at 5.875 payment $595.98. Bank is offering 4.375% $90,000 for 30 yrs but only brings payment down $147.62/mo. Total settlement costs $3,260.19. Should I look elsewhere? Costs feel pretty high
Cheryl,
The costs are in line and the savings is small based on the loan amount. I would look into a 15 yr loan or maybe a 10 yr fixed.
Add closing costs into your new loan balance. It will only cost you about $20 per month extra.
I have a 5-1 ARM with CitiMortgage and a 2nd from Webster from an 80-10-10 refinance in 2005. On top of that I have a home equity line of credit with Wells Fargo.
Total owed is $390K and Zillow currently estimates a value of $380K. I checked with Freddie Mac and they own my loan.
When I approached Citi they said I meet all of the HARP requirements EXCEPT that my loan is not “coded” properly. I asked who decides on the code and they said they do, but are not able to access the information. Their superiors decide.
Anybody experience this? Freddie is adamant that I qualify, but Citi says I don’t. What’s my recourse?
They told me the exact same thing. What Citi-Mortgage is doing is blocking you from refinancing because either you paying on time or they got you locked in a high pmi and internest. My loan was owned by Fannie Mae, they said I had a code on my loan, now Citi-Mortgage bought the loan back from Fannie Mae so now i cant refiance under HARP. I have have attorneys that are now getting involved.
Forgot to mention, Citi-Mortgage just bought my loan in February 2012, so how could I not apply or get approved if i had a Fannie Mae loan at the time. Goes to show they was blocking my load with the code until they bought it back. Alot of illegal fraudulent things with them. Jim if you would like to talk on the side because they are doing to you what they are currently doing to me and probably million others.
Will,
I would offer the same advice as Jim. Have a “new servicer” run your file. Plus your file is Fannie and is a lot easier to run through their DU (underwriting system) The Big servicer banks have more to gain to refi you then try to block the refi. There is more to the refi details.
Jim,
A few things for you. Citi would like to refi and reduce your risk, make some money on teh secondary and move over to Freddie. So i seriously doubt that is the issue. What I would do is go to a new servicer and have your file run in LP (fredddie’s underwriting software ) then ask to see that if they will let you and or contact Freddie directly with your question/concern.
go on line to making homes affordable…they can answer any and all questions….e did and the site has tons of info…..
I understood you aren’t suppose to have to requalify if your payment doesnt increase more than 20% with the harp 2.0. Why don’t lenders have to follow the rules?
Kim,
Those rules apply with “same” servicer or the company you pay your mortgage. (if they are the BIG 4 or 5) The meaning behind that rule is to streamline the process, but “if the payment increases, then they will treat you just liek a “normal” qualifying consumer. Income, credit, etc.
I live in Las Vegas NV. We have tried re-financing with Wells Fargo since the loan is currently with B of A. B of A told me that they are too busy to talk with me for 2-3 months. Gave WF all the info and was told that they should be able to do the re-fi. The new loan was $225K at 4.75% fixed for 30 yrs. The value of the house with comparable sales is only around $134K. We meet all the HARP requirements and are current on the loan and have an 800+ credit score. Got a call back from WF today and was told that they underwriters would not approve it because of the LTV. Is that correct? I thought one of the objects of HARP was to get people that are current on their mortgage into a better interest rate even though the value of their home had fallen.
Are you applying for a fixed rate or an ARM?
Jeff,
A very simple solution. You shop around for lenders that can handle the higher LTV. or just go to BOA for your HARP 2 loan. Lots of ” new” servicers can do your loan.
jeff you will find lots of game playing out there, we did with GMAC….remember that these big compinies were sued by our government and were told to offer these harp loans. they try to get around the rules at every corner…do lots of research, get all the right docs before starting, and don’t let them tell lies…they did to us…were still working on ours and it’s into the third month, see what i mean about game playing…
I would like to refi but afraid credit is not as good as when bought house.no late payments but close to limits because of drop in income and lots of medical and dental bills.We bought a forclosure 3 years ago today.Should i even try,and should I start with my mortgage bank first.are there any with no appraisal fees and costs upfront.
Marilyn,
You need to try and you need to spend the time to figure out of you qualify for the loan. But don’t spend money on an “app” or appraisal fee. If you do have true issues with credit. your best bet is with your servicer.
Scott,
Can I refi with Fannie if my loan is under BofA??
Who would you recommend to refi with if I can’t under Fannie or Freddie? My rate is 6% both parents working and payments update, no lates.
Robert,
You ability to refi is Not based on boa servicing your loan. It has to do with if your loan is; 1). owned by either fannie or freddie 2). the loan was funded by March 31st 2009 3). No lates
4). currently employed
That will determine your success with this program. That will determine your success.
plus you have to be upside down on your home value to qualify for a harp loan. that is one of the main things….
80% and above.
What does the “upside down mean”? Trying to re-fi a 6.65% loan in NY with an LTV of 44%. House is worth 950k+ and outstanding loan is approx 408k w/closing costs. Having such a hard time getting this refi approved! Have a co-borrower w/plenty of funds. Don’t know what to do?? Can anyone give me advise??
Thanks Scott, my original loan was referred to as a ” Zip code Loan” Not sure if this is the “second underwriting” have not yet called them for further details.
Angie, have you found out any new info on your question? what state are you in?
If you searched for your mortgage on the Fannie / Freddie databases and were told that they don’t own your mortgage, don’t give up. Make sure that you use the correct zip code when filling in the search information. The zip code you enter must be the code that was in effect when the mortgage loan was originated.
Our zip code was changed a few years ago. We did not find our mortgage in the Freddie Mac database until we entered our address using the old zip code.
Good luck!
I purchased a second home in Tucson Arizona. The mortgage was bought thru eastern federal credit union in Miami Florida where we reside. Well eastern credit union was taken over by space coast credit union. I have been trying for several months to apply for a harp loan thru them. They advised that I had to wait till march. Well today they told me that since home is thru Freddie Mac and out of state they cannot do a harp loan becuz of clause that they would not do out of state loans.
Charles,
If you qualify for the basic qualifications. (owned by, funded by, no lates, currently employed) Then you need to focus on a Freddie lender in the state of AZ. The reason is because the originator needs to be in the state they are licensed in. ie. AZ. I have offices in Az, so let me know if you need help with your second home in AZ.
this is what i have in 03/01/2009 i went through a divorce and ended up with the main house. i refinanced through my credit union and had my exwife,s name come off the mortgage. i refinanced at 6% 30yr 155,000.00 the s.e.v. was 218,000.00. in 03/2011 i went to refinance through quicken loans and ws ok,ed for a mortgage and then the appraisal came in at 134,000.00! that killed everything on the spot and the s.e.v. came down to 203,000.00! now the harp 2.0 comes out and i don,t qualify for that because i closed on my mortgage on 07/01/2009! i missed the cut-off by one month! i do wonder how they came up with that cut-off date.
yes whats this 2009 all about if your hurting whats the diff when the mortgage closed Chase refinanced us 2011 and never mentioned anything about the harp program were upsidedown big time here wheres this gov. help?
well i just got off the phone with wells fargo finally approved for harp 2..but the problem i have is the interest rates 5.125 30 yr….5% for 20. 15 yrs 4.5%…seems high with closing costs of $3000. now it was explained because we are upside down and Freddie backed upsidedown they have to chged higer rate even though we have score of 800. PLus was told my good faith estimate will show $6000 + but ignore it because really will get credit of 3500. because i’m a customer…sound right???
Tricia,
A few things on this… what does “approved” mean? Did it go through underwriting? or you meet the basic approval based on Owned by and sold by Freddie Mac? The rate is very high. keep in mind HARP 2 has a gudieline in built inside that states the fees are capped at .750 (price, not rate) on primary and 2.00 pts on investment. This is important and its sole intent was to keep the rates down. Not Wells increasing and or charging what they want. Closing costs on a Freddie can get tricking, because Freddie will only allow 5K or 4% to be rolled into the loan. Plus your you will need to set up your new escrow account inside escrow also. So the 6k is about right and a Loan Officer can credit back to you. rate should be in the middle 4′s.
Shop around for better refi rates, and check out the credit unions.
Citi has our current mortgage (about 20 yrs remaining, at 5.5%). They wanted 4.25% for a 15 yr HARP refi. It seemed like a high rate, so I checked at our credit union and they offered 3.125%. We are going to save a lot of money!!!
My mortgage company sent me an email advising me I qualified for the HARP program, I called, spoke to a loan rep who informed me he could get me to a 4.625% interest rate based on the information I gave him and my credit score which he pulled. I received a good faith offer in the mail as well as by email a couple days later. I called just before I mailed the package back to verify I had all the documents required, loan rep. verified all was well. Two hours later I received a call from the rep informing me I do not qualify for this program because my original loan had a second underwriting. I called back and spoke to a manager who informed they cannot help me. I did not initiate this process I was contacted and told I qualified, one would think the research would have been done prior to contacting me and sending me a GFE. I feel as if someone invited me to dinner and I showed up starving then was told “oops, sorry there is no dinner for you” aaaaaarrrrgggghhhhh!!!!! Does anyone know if I have any recourse?
Angie,
You don’t… An Lo’s job is to determine up front if you qualify, request information to support the decision and submit that information for an Underwriter to verify. In HARP, the basic are the Onwed by Fannie/Freddie, Sold by May 31, 2009, late payments and currently working. The Lo will not know the finer details until you provide the information and so. Im unclear on the “second underwrite” is all about and why it caused a decline. When you asked for clarification about this ‘second..” what was said?
Are there any Harp 2.0 programs for loans originated after 5/31/09?
I would wait until summer, So HARP 2 has time to be evaluated on its success and or failures.
Plus you have a big FHA streamline program rolling out in June.
There are alot of us who meet all the requirements for Harp 2, except we either financed our original loans after May 31,2009 or took advantage of the first Harp and refi after May 31, 2009. Please can you answer why the date of 5/31/2009 was the line in the drawn in the sand for eligiblity? Do you really see any hope for those of us who would love to take advantage of the refi @ today’s low rates but appear to be penalized because we may have utilized Harp 1.
Sheila,
Good question… There is no clear cut answer to that sold date of may 31 2009. we think (those in the industry) think it because of the first time home buyer credit doesn’t need to be double dipped with the refi program on top of a govt. purchase program. I think they might move that date based on the success or lake of with HARP 2. I also think they might have to go in waves to refi, because they also have the FHA program coming out in June. the banks cant simple handle 2 refi programs and a normal seasonally purchases coming in. (then lump in foreclosures and short sales then have to handle) I would just keep your eyes and ears open.
Has anyone ever refinanced with UVS Corporation out of Irvine Calif. If you have what was the outcome. Good or bad? Thanks
Joanne, Im not sure they are a bank. You Google them and its some outsource company. I have an office in Irvine. If you need help.
My mortgage was sold from Chase to SETERUS and they have been terrible to work with. Will not respond to my requests regarding HARP. Anyone had success with a refin at another lender? I owe 321k and house is worth 280k. Based on what I have seen I should qualify for a refi through HARP. Any suggestions?
John,
New lenders opened for business March 19th. You need to make sure your loan is owned by Fannie or Freddie first, then make sure it was purchased by them by May 31, 2009. If you get by that filter, you should be ok and your LTV to not bad. what state are you in? (referral)
I have my mortgage with Wells Fargo and just contacted them to refinance with Harp2 program. They are requiring me to have appraisal and charging me another $3,200 for this**I have a Fannie Mae loan**whats up with this **I thought there was no apraisal needed and no down payment! They said that was with the Freddie Mac only…Don’t these mortgage companies have to follow the same rules? I am retired and could really benefit from the lowering of my interest rate as I have an interest of 6.5% now***I called Chase bank and they are not accepting anyone without their mortgage being with them***thanks Loretta
Loretta,
There are serveral factors here. 1. It owned by Freddie & wells services it. The part about Freddie is that their gudleines state the consomer can only roll costs/impounds into the new loan of 5k or 4% (the lesser can be applied) so when you have closing costs of say 2800 and new impounds or 3200 and you have a small loan amount. That translate into cash to close a harp loan with freddie. I would go find a new lender and roll rebate from the Lo to help the cash to close issues (or at least look at that option) I can explain more if you need.
I am thinking about applying for a HARP. I have a Fannie Mae Mortgage that is underwater. Are there any stipulations on renting? We may have to consider renting the property down the road if we have to move to another location?
In clear writing, No. if you bail on a refi of a primary to rent with in a say within 12 months without any justification (relo, moveup, divorce, etc)
My loan is not owned by either Fannie Mae or Freddie Mac. Been told I do not qualify for HARP. My current rate is 10.5%. Have not been late on my mortgage but am not really able to afford it. Chase is my current holder. What options do I have?
Research the HAMP and Principal Reduction Alternative. Hope it helps!!
wait until summer. house should pass the next refi program (all non – fha, fannie and freddie loans)
John,
If your search on the Freddie or Fannie databases showed that they do not own your mortgage, make sure that you are using the correct zip code when entering your address info. The zip code that you enter must be the code that was in effect when the mortgage loan was originated.
Our zip code was changed a few years ago. We did not find our mortgage in the Fannie / Freddie database until we entered our address with the old zip code.
You’d think that they would have enough sense to update their database with the new zip codes, or at least make an effort to inform people to use the zip code that appears on the mortgage documents.
I know folks whom have gone into foreclosure and still in their homes for years without paying the mortgages.Perhaps the only way to deal with banks these days is by playing hardball,just be ready to move if you have to do so.Mobile home purchases are not complicated like foundation homes and do not have so many leaches sucking the blood out of you.Good luck,what a huge percentage you are paying compared to today’s standard.Watch for mobile homes to have valuable interest rates.My first home was a singlewide and it was financed by the lot owners at 11 % and went up to 13%,but that was in the late eighties.It was financed over 7 years and I paid it off in 3 years.Don’t live in something like this in tornado alley,or south Florida.I moved the home three times before it settled as a farm house.
Oops, I forgot to mention the dealer lot owner,not land owner concerning the paragraph above.
I submitted an inquiry to my mortgage servicer “Green Tree” back in early February. Due to my LTV (125.5)they advised I call back in March for HARP 2.0 which would not have a LTV cap. So I called back 1 week ago and was informed they are not prepared for HARP 2.0 and to complete an applicastion and a Loan Officer would contact me. I completed the application today and this is what is on their website as of today:
UPDATE!
Green Tree’s HARP 2.0 Guidelines: At this time, Green Tree does not offer LTV’s over 125% with or without Mortgage Insurance on Primary Residence properties. We are working on a solution for our customers that require LTV’s above 125%, and we will provide more information and further details as they are announced!
Given the HARP 2.0 guidelines, is this legal?
I was wondering the same thing….but I don’t know if banks are really required to work with everyone or not, because some lenders are not participating all together. I have posted as well as many others that I have yet to find one company willing to finance more than 125%…I just don’t get it nor understand it enough of who is supposed to follow this if anyone…
It’s extremely frustrating!! Apparently, from what I could find… the program exists but states that all banks can make their own terms (pointless). So, it’s up to the bank what they’re willing to do via LTV. They explain that the best bank to go thru is the the one who currently holds your mortgage. But, as you, my bank will not go above 125% and I have yet to find any bank that will. Suntrust is stating they may go to 150%, but haven’t set their rules yet. It’s ridiculous to make this “great” program that only a very few can utilize. Typical gov’t *&#)!.
Ramondo, Cyndie & LA,
Here is some info that might help. The program facts so far.
1. Program is Voluntary
2. Fannie has easier guidelines/restrictions vs Freddie so far (from what ive run into so far)
3. Know you basic filters/qualifications of this program first, then select the bank who can best suite your needs. (ie. Loan needs to be owned by one of them, that loan also needed to have been sold to them by May 31, 2009, No lates in 6 and working currently… These are the basics)
4. Some banks WILL not take a HARP 2 with MI currently attached, but a lot will. just need to find them.
Here is your LTV frustrations: I’ll keep this is simple terms as possible.
It takes 3 players to play in the Harp 2 refi program. 1. Fannie/ Freddie will repurchase the loan when originated by same servicer or new servicer. 2. A new Originator who has systems in place to re originate the New HARP 2 loan. 3. Warehouse line – (This is the issue here) There function is to wire new money to pay off the old liens. The issue is they dont want to wire money on a collateral that is only worth half or a third of its value. ie. House is lien is 100,000… property is worth 30,000… Warehouse line is saying to originating banks, “I’m not wiring 100k on a 30k assets, so you will need to front 70k, until that loan is sold in the secondary markets” This is a real reason banks have pulled back on the LTV requirements in HARP 2. But it doesnt mean its over and will not work… Plenty of banks are working with their warehouse lines to fix this issues. So plan to have LTV move out into better LTV positions in April. You just need to locate a bank that can take on a Higher LTV Fannie or Freddie loan. They are there and or find a trusted source that can keep you in teh loop as the programs grows its legs.
Scott
Thanks for the info. This is my situation. I live in Las Vegas, NV I have lived in my home for 15 years. We refinanced 5 years ago to consolidate school loans and pay off our cars. This of course was before the market and economy took a hit. It was still the smart thing to do in our case even looking back now because though we have a bigger home loan, we also only have one interest rate instead of 6 and on one income now (several loans would be difficult). in 2007, we refinanced at 5.875% at 20 years vs. 30 as we did not want to lose our time vested in the home. We just want to lower our rate and get a 15 year loan.
We have 800 credit scores, have never missed a payment, and meet ever requirement under Harp 2.0 to a tee. We have a Freddie Mac loan that was originally through Quickens but was sold to Provident Morgage. Provident Morgage is not participating in the program and Quicken will not exceed 125% due to the risk of having to payback the loan. According to zillow.com our house is worth about $94,000, we owe $164,000 so as you can see that far exceeds 125%, in fact I don’t know if anyone in NV who is just at 125%. To top it off Quicken tells me that Provident is not even a participating lender in NV(which I verified), and I’m thinking ok so how did they get our loan, and thank you Quicken for screwing us it seems….as no one wants to take the loan unless you have a existing account with them. Any advice?
Just got off the phone with my lender (Nationstar). Not sure i’m getting a good deal with this so here goes. I’m in Tampa, bought my house in 2007, owe 305K and estimated now at 264K. Nationstar approved me for refi at 5% rate(currently have 6,125%)with total closing cost at around $9000 that can be included with the mortgage. So that would bring me to 314K with 5% interest rate, 30-year fixed. Monthly payments would be less $300. Never been delinquent with my payments. No PMI either. Any advice is appreciated.
Frankie, Shop around, it should be around the middle 4′s. Plus the 9 k is very high, but I think you are including your impounds in those fees also.
I agree that 9K in closing costs sounds very high..I would definitely check into that.
I have a Fannie Mac back loan looking at HARP to lower my 30 yr fixed loan. Have a 2nd loan-old 80/20 mortgage. Total loan is about what the single Fam rental house is worth-220K. Want to lower my 5.625% rate. Am working with my current lender -Citimortgage. They have provided a GFE with a better rate and offered a 7-1 ARM GFE.
See conflicting info that a HARP 30 yr fixed can not be converted to an ARM-
Is this true or can I convert the new Harp loan to an ARM?
Aslo can not seem to find a bank other then Citimortgage who will do a Harp on my Freddie Mac backed loan. Am I wasting my time trying to find another lender and compare rates?
Thanks
See some info on this web site that you can do a HARP with a 30yr fixed into an ARM if you have 105% LTV appraisal.
•’However for homeowners looking to refinance in to an adjustable rate mortgage the maximum LTV is set at 105%’.
Trying to verify if this is true.
Citimortgage now saying there is no means to move from a 30yr to a ARM under the HARP regardless of the LTV
Anyone know if this is the truth and how I can get verification to the Citimortgage?
Mark,
The program requires that you move to a more stable loan. So if you have an ARM they will allow you to go into an ARM with a maximum LTV of 105% or move to a fixed rate with no LTV cap. They will not allow you to move from a fixed rate to an ARM because that would be moving to a less stable mortgage.
Mark,
Just so we are on the same page. Its a Freddie Mac? (you wrote Fannie Mac to start this email and yes it say fredie mac below) HARP 2 can be used and moved into an ARM, BUT the LTV on the mortgage will be caped at 105% of its value. So if you don’t exceed the 105% of value on the first loan only, then you should. But if it exceeds that, then you will need to be placed into a FIXED rate mortgage.
My daughter and her family are still financially dependants because she is a medical student.Scott,what you got to tell me about a mortgage that is 140 % LTV,a 6 % loan bought in 2007,can not get my bank whom our family has been doing biz for decades to help us,is rented thus far and no missed payments, and a mom whom can afford to buy the sucker and let it go into foreclosure?Show me something,mister!
Susan,
You just need to stay with the “program qualifications”…
1) is it owned by fannie or freddie 2) sold by (and it sounds like it has) 3). no lates in the last 6 months 4) still employed
If that is true. Then i don’t see what the issue is.
You need to keep in mind a few things. The only dealing with loans that they control/own. (ie. Freddie/Fannie/FHA) They have no control or authority to undue a securitized mortgage contract that investors purchased and are getting paid for that at the current rates. Plus you obtained the mortgage, signed the note, deed, so they is no legal responsibility to refi out of your current mortgage obligation. On the other side, it seems unfair that the responsible ones pay (with lost equity)
I live in MA and have been trying to do a refi with CitiMortgage for the past 2 months. My loan was owned by FNMA and things were moving along slowly. First, they insisted on an appraisal, even though I was under the impression it wasn’t supposed to be required.
I bought down to an interest rate of 4.125, did the appraisal, and paid for a subordination for my home equity loan ($200 to file papers – I think I’m in the wrong business). Yesterday, though, I got an email saying that they were requiring that I take care of a bunch of cosmetic things the appraiser noted, like the house needing a paint job, installing some interior window trim and a missing closet door.
The interior things have been purposely left unfinished because I’ve been gradually doing some painting and remodeling as time and money allow. It’s also still to early to depend on the weather to get the house painted, not to mention I need to save more to pay for it. In addition, they’re also insisting that I show them bank statements proving I have enough “liquid assets” to cover $18K in credit card debt.
If I had $18K lying around, I wouldn’t have the credit card debt in the first place. And I wouldn’t keep that much money in cash anyway, given the pathetic interest rates being paid on savings these days. I invest all savings over a few grand in dividend-paying stocks, MLPs, or REITs to get a better return.
I bought my house in ’94, refinanced in 2003 after my divorce (did a quitclaim with the ex). I owe around $173K on the primary mortgage and $93K on a home equity loan. The appraisal valued the house at $340, but my next door neighbor sold in November of 2011 for $415, so I think that value’s a but low, since our houses and property are very similar.
I feel like Citi is shafting me on this, since they’ve know my financials since day 1. My credit score isn’t spectacular – around 710 – mostly due to a bout of unemployment in 2009 that led to a few months of late payments. I make very good income and do have some credit card debt, but I’m not underwater and have always paid on time except for that short period in 2009. I made almost $120K last year and will make even more this year, and have been steadily employed with increasing income since 2009.
Am I being screwed here? Any suggestions?
How do I know if my loan is with Fannie Mae or Freddie Mac?
http://harp-mortgage.com/who-owns-my-loan/
I’ve got a 780 credit score, I’ve paid my loan on-time and in-full from the day it opened 12/05, and I’m trying to cut my 6.125% interest down, but Wells Fargo tells me I’m not eligible for HARP 2.0 refinance (with them) because my loan originated with another lender (who no longer exists). What are my options?
I am in essentially the same situation. I have tried bank after bank but no one will do a refi. HARP looks good on paper but, in practice, appears to be useless. I would love to get a list of lenders who will actually use the HARP guidelines for approval.
Here is how it works:
Two types of harp loans ( so to speak). 1. Same servicer – that a Wells client being refi by a Wells loan officer. ( a wells loan officer can’t orginate a harp lo outside it their bank and why they said no). 2. New Servicer – that are all the other mortgage banks and that started march 19th. ( but not all a doing them at the current moment).
Test to see if you can qualify for a harp 2 loan:
1. Is your loan owned by Fannie or Freddie Mac ? ( got to their websites and find out)
2. Did you ” fund” your current loan by “march 31 2009″ ?
3. Have you missed any payments in the last 6 months and or more than 1 in the last 12 months ?
4. Are you still employed?
If you answered, Yes, Yes, No and Yes. You have a great chance to refi under harp 2.
Scott:
Basically applied and qualified for re-fi with Umpqua Bank, Fannie May and qualified HARP candidate. Never late, high 700′s (783/792 husband/wife!) Both fully (thankfully) employed currently at 6.375% 30 year, fully amortized, no PMI. Original loan $160k, owe $125K. Property valued at $139K (per Umpqua, not under water). Started process exactly 2/20/12 1 month ago! happy with 4%, $4k all costs, new 20 Year fully amortized fixed. Monthly will remain same at approx $1100.00 loan of $129k. Today we get email from Loan Officer stating we need $91.00 more per month for PMI??? What? Premium Mortgage Insurance PMI …does this sound okay? What are the parameters for PMI under HARP? Any ideas on when this needed to be disclosed. Property is non owner occupied in Bend, Oregon. Appreciate your advise.
Under HARP if your current loan does not have mortgage insurance then the new loan would not either.
Hi Julio, I’m almost positive your loan officer is doing a ” standard ” refi of your current loan. Here is why, 1. Harp 2 – doesn’t require a new mi policy on a harp 2 loan . Like Fred has mentioned. 2. They are adding Mi because they can, meaning you have equity in the property and that tip me off on why it’s a normal refinance.
I think he just wanted to do a loan.
. So, if you have not paid any money, then leave and or demand to speak to his manager about a proper harp 2 loan and not a normal loan with mi.
Thanks Fred! Thanks Scott! You’re both right, through extensive research I found a letter from May ’04 confirming that since I had the property re-appraised, the PMIcame off at the time so Fred, my current loan DOES NOT have PMI, I proposed this to them and I won that argument! Ready for the shocker…just yesterday I get a call from Loan Officer and email from under-writer and they are now saying that I WILL need an appraisal. I’ve got 2 emailed confirming that I wouldn’t need one but I’ve got an eerie feeling they’re trying to nickle-and-dime me on this. I realize 4% is a deal but it’s fishy when they try to get me for $91 per month and now they throw another curve ball…listen, $575 for appraisal I can put on my credit card, it’s the principle and how it’s being handled…Scott I believe you’re right…this people may only be doing a std re-fin not HARP…appreciate any commens and will keep you posted!
Trying to find out if my husband and I would qualify for HARP2. We paid $299,000 for our home in upstate NY in 2004 and only had $145,000 loan at the time. In 2007, the house was worth $360,000 and we took an equity credit line of 198,000 with another bank. Most of this money went for a new business, home improvements and college tuition.We want to combine the 2 loans and refinance at a lower rate. The house is now worth about$275,000. The 1st mortgage rate is 5.875 but the credit line is of course an adjustable. What are our options for refi?
Under HARP you can not combine your 1st & 2nd. You could only refinance your 1st and subordinate the 2nd. The 2nd lien holder would need to be willing to do the subordination but most of them are signing off on it.
I’m a bit confused on the Harp versions. Is there a 3.0? If so, is or when will it be available? I read online that there was but the lender I called knew nothing about it. As a matter of fact he did not seem to know much about Harp over all. This makes me uneasy and fearful to make any decision.
HARP 3.0 is only being talked about in Congress.
Nick, understandable, it almost sounds like a new release of a Calloway golf club vs a refi program.
If you qualify for harp2 , then I would jump in and refi, because these programs ( if you qualify) are only as good as their rates. (and rates are very good). Harp 3 – if I had to predict ( and if they do) all Fannie/Freddie properties with sold dates after may 31 2009.
Hello,
My 1st mortgage has been modified and is currently owned by FannieMae (I was informed). However, it wasn’t modified under the HAMP program. I’ve been trying to get my 2nd modified (Well Fargo), but since my 1st mortgage went through an in-house mod they will not entertain my application. My first application with Well Fargo, approximately 1.5 years ago, was denied as well. Due to some financial strain, I wasn’t able to pay my 2nd and was late on several payments. However, I’m now working on paying those late payments. Do you think Well Fargo will allow me to apply for the HARP or should I apply with Fannie Mae or my servicer? I appreciate it.
Rml, Sorry but harp will not work for your current situation.
Has anyone heard of or used first option mortgage?
They are supposedly helping people with HARP 2.0 even if you don’t have a loan through them…but I think they are a broker and I am a little leary on some complaints I read on the internet.
Cyndie, What state are of in? Harp 2 has opened up to new servicers as of march 19th. Meaning the banks other than your current servicer can help you with harp 2.
Scott
I am in Vegas (NV), no lender will take us unless we have a mtg. with them and ours isn’t participating. The only place that would so far won’t go over 125% and I am about 172%. But I am hearing that 125% is the average…We meet all the requirements and have 800 credits. We just want to refinance to a 15yr and take advantage of the lower rate to payoff faster. So frustrating…this Harp plan only seems to help very few so far…
Have $201,000 first and $25,000 second on townhome in Las Vegas. Comps would value it at about $75-$78,000.
My payments are current, my credit is ok, loan was thru builder, Wm. Lyons, MERS servicing Fannie Mae/Freddie Mac loan purchased Aug. 2006.
Would I qualify and can I go to any lender or just certain ones?Thank you
Any lender, but you need to know if it’s Fannie or Freddie first. Then find one that can go up to that high of ltv/cltv.
My current lender Provident Mtg. is not participating in the plan. Quicken sold my loan to Provident in my last refinance in 2007 when I consolidated by school loans into my home. That of course was before the market took a dump and house prices were at their high.
I have been working with Quicken for the last month to qualify for the Harp 2.0 plan but found out today that they are only going to take loans up to 125% LTV despite the new no cap guideline. Last week they said 150%.
According to Quicken the don’t want the to take on potential risks beyond 125% (the original Harp plan) as they have been told by Freddie Mac/Fannie Mae that they will be inevitably held responsible for the loan should the homeowner default.
I called a few other banks but was told that they will only do the Harp plan with existing customers.
I live in Las Vegas NV where the market is one of the states that has been hit the hardest. I currently owe $164,750 on my home and its valued at about $94,000. I am at about 172% LTV, many are worse off than that.
My husband and I have no other debt other than a couple hundred dollars on one credit card, credit scores in the low 800′s, have never been late on our home during the 15 years, refinanced prior to 2009, have a Freddie Mac loan and meet every requirement under the guidelines. We just want to take advantage of the low rates as we are at almost 6% and a 3.5% rate would help us out about $400 a month.
We plan to refinance to 15 years and continue to make our normal payment to payoff our home quicker.
Does anyone know of any banks we can try or other options?
I am in the same exact boat only in Miami. I too was rejected by Quicken Loans today. And my loan servicer Seterus doesn’t refinance. I am looking for any other banks that might help.
I am a loan officer in Phoenix and I was looking forward to being able to do HARP 2.0 loans without the cap on LTV. However we were told this week that there are not any investors who are going over 125% at this time except for banks and you loan must be currently serviced by the bank. The investors are all worried about being charged back if the loan goes bad. You may see some investors go above 125% in the future but for know they are all holding back watching to see how the loans being done by the banks perform before they get in.
Fred,
There are investors for HARP 2.0 that I know of in many states as of the 19th of March.
Vicky, Fred and Sam….just doesn’t make sense. So all this hype for the new Harp 2.0 and who is it helping….very few I would guess. What was the point of this no cap if everyone is placing restrictions. 125%ltv is not nearly enough to help those underwater, especially in hard hit states like mine and Vicky’s. Really its almost like the luck of the draw, if you were lukcy to have financed through or your loan was sold to a particpating company you have it made. One bank I called is setting no cap for their own….once again, it seems I fell into that loop hole. Sam if you know names of lenders I am sure all of us would appreciate some names.
When we bought we were a 2 income family now we are a 1 income family. Looking to refi using Harp 2.0 using on the working bowwers information. Both have good credit but now worker has grad school loans currently in defferment with no income to support them. Prefer not to drag them in….Is it possible to refi with only 1 of the borrowers info. Taxes would show only 1 income coming in.
I have tried to refinnace within the HARP 2 program but was told that my debt to income ratio is too high. I have made my payments for 5 years without a problem but my home is underwater by too much. I thought this program was supposed to help me but it just put me back in my same situation. I am looking for some answers or at least some help!.
If you are not late on your last 12 mortgage payments no matter how underwater your loan is this has to refinanced by HARP.
At this time that is not true. Most lenders are only going up to 125% LTV. Everyone was expecting to be able to do a frefinance regardless of LTV but at the last minute the investors all backed off and are staying at 125%.
Fred,
There are several lenders working with the new HARP 2.0 guidelines the 19th was the start date for Fannie Mae DU implementation.
Who are the lenders that are allowing greater than 125% LTV? Does anyone know because it sure doesn’t seem like any are willing to go beyond that amount.
The trick is to find a bank that is Fannie direct, a warehouse line that is fine with wiring money and the collateral is less than half or a third of the wiring. Then have a servicer on the side and not have one of the big banks hitting it with overlays before it gets back to Fannie. I know of one.
I have a mortgage that I am underwater in. I was trying to refinance, but the appraisal came back about 8k lower than what I owe. I do not have a Freddie or Fannie loan. Tried to refinance through a Lending Tree company and they said they could not refi unless I brought alot of money with me to the closing. I am retired military and am paying PMI (for some reason). Is there any option that I can take to refinance?
Paul, Do you have an FHA loan currently? If you don’t the only option at the current time would bring cash to close. I would wait and see if any other programs come out this out (to help all of the NON Fannie, Freddie and FHA loans that are underwater)
We refinanced using what our lender was calling “HARM” this past November 2011 not knowing we could qualify for a lower interest rate after December 31st. Now I need to refinance due to divorce, but my lender is telling me that we just refinanced, and that since we used the “HARP” program already, we cannot request refinance using HARP again. I couldn’t believe it when they told us we had used HARP and that we could apply more than one time. This was never explained to us during the process of refinancing. Also, the divorce was not something I knew would be coming, when we signed off on the refinance.
The problem is, I might now lose the house just because I cannot go to that lower interest rate and get my former spouse off the mortgage because the lender says we are now under water. What seems odd to me, is that before the lender said we were under water, we weren’t. It wasn’t until they devalued our property that we were under water.
Do I have any options?
Eric, Sorry about the run around and your situation. As of now, there is not much you can do with the refinance. they are holding very firm on the dates of May 31 2009.
my husband went to BOA to ask about refinancing we are at 6.25% original loan was180,000.in 2007. i did not go to bank with him but they did not discuss HARP with him our home at present time is only worth 104,000.
they have charged him $430.00 non refundable for the loan application to refinance at 5.25%
closing costs are several thousand dollars, so that the total loan again is going to be 180,000.
I told my husband that I thought it would be crazy to go ahead with this loan. Why would BOA not discuss this HARP information with him.??
We have not missed a payment and we have an excellent credit score. My husband is 82 and I am still working because I do not forsee being able to sell this hoe in the near future
any suggestions?? Ideas – options??? We live in Florida
does
Rate is high but The todays’s rate for me under HARP through GMAC is 4.625 and you have to have a FM or Fanny mae loan. Come Monday the 19th the feds may open it up for all loans.You should have a right to ressision and up to 30 days. That means you lost the $430 but you can cancel the loan!!!!!!! Read your doc’s about your right to resission or call them and ask “telling them you will right down what tey say for your lawyer to look at. Bet you get a response!! Hope this helps, Erick
Linda, something doesn’t sounds right. Couple of things for you. to qualify for HARP your loan needs to be have owned by Fannie or Freddie, your loan is to have been sold to them by May 31 2009, if so then HARP can be used. lets say it is, the loan numbers should look like this,
Remaining Balance – 104,000
Fees – 2800
Impounds – 1200
New Loan amount = 108,000
new rate = 4.125 to 4.5%
Not sure where 180,000 comes in or you meant to say 108,000?
So see if your a HARP candidate first, then ask for the numbers to be presented again.
Scott their value is $104,000 not the remaining balance. If they took the loan out in 2007 and original balance was $180,000 they could be back close to $180,000 after adding in fees and prepaids. They probably have not paid down the mortgage very much if they have just been making the required payments. BOA may not have talked to you about HARP because they loan may not have been eligible or maybe they were doing a HARP loan but did not tell you it was. Since your home is only worth $104,000 and you owe close to $180,000 it had to be either a HARP loan of an FHA or VA loan where you could do a streamline loan without an appraisal. 5.25% does seem high on the rate but if you do not have a FHA or VA loan it is probably your only option at this time.
I have a 7% fixed loan with Chase. I lost my full-time job last year and am currently working part-time and receiving unemployment. Will I qualify for the HARP program? If not, it would be a shame to have to continue paying a higher interest rate with a temporary lower income. Especially when the interest rates have dropped tremendously.
Regina,
sorry for the job loss… Question, is that part time job the same line of work? You might be ok, your plan is to have your file ran in Fannie and or Freddie LP or DU system to see what they would want from you. So have for your approved, then pay for appraisal/fees after the approval.
Does the HARP program have a 40 year option? So far, I’ve heard it’s just a 30 year fixed available. Trying to get our payments as low as we can, so we can rent out our condo, which the Fannie Mae loan is on, and rent a house for a few years. The loan is just under me, not my wifew.
I dont think you even qualify for any gov assist for a rental as we poor homeowners need it the most. The Paperwork I have is Primary res only and Believe the harp rules say so.
Brandon, Yes it does, you can also use an ARM. But, you will have some issues. Harp says its “unlimited LTV & CLTV , but the Terms need to be 30 yrs or less. If you term is greater or an ARM product, the LTV caps will be reduced to 105% LTV. So you can, but it will be based on your how LTV they determine it is. make sense?
40 year rates are so high today that it usually makes no sense to do a 40 year loan. HARP does allow investment properties though.
I was just told by NationStar that I didn’t get approved by Freddie Mac because my credit score is 679. I thought there was no minimum credit score. Is there something I can do? Can I shop around? I recently graduated so I have multiple student loans on my credit, if I consolidate them will that help? How about if I close my only 2 credit cards?
EMeaney, I would shop around, but you need to look for lender that will be Freddie Mac direct. Lots of banks have investors and or their warehouse lines are being capped with restrictions on what they can do for you on HARP.
Some questions come to mind: 1). was Nation Star submitting and or qualifying you under the HARP 2 or original Harp loan? 2). Is Nation Star your servicer on the current loan? 3). teh low fico and IF your LTV is high, that might have set off the decline with them. (risk)
I would want until the “NEW” servicers can run the file next week in your state, Plus make sure you find a Freddie Mac direct lender, so the overlays/caps will not hurt your ability to qualify with Harp 2. email me if you need a referral in your state.
I just got turned down for HARP by Wells Fargo, who said everything was fine except I have an open Chapter 13 so they can’t help me I would think those that need the help the most don’t get it. Last year I didn’t qualify for it either then they said I had to be more than 50% complete with the Chapter 13. Have the rules changes aONCE MORE!???
Carrie, I take it your loan is a Freddie Mac loan. Harp says it will be able to handle the BK, etc. Fannie clearly states that in its guidelines, but Freddie doesn’t or i have not seen it yet stated in their guidelines. wait until next week, when new servicers can take on the loan for you, plus the information starts to become more clearly defined.
I have a Bank of America/ Fannie and line of credit on my home. Want to use Harp2 to re-fi currently a 10yr.7.75% ARM current on pmts.credit score hi 700s employed but debt to income over 65% (widow)what is possibity of a 5yr. ARM property should appraise for less then required 105% PMI not a problem.
Victoria, Not sure i got the whole question, but your 1st td sounds fine, but make sure it was sold prior to May 31 2009. the dti might make it with a DU approval, but you lost me on the last part.
Scott,
How do I reach you?
I have a fannie mae loan. BOA and making payments to Green Tree.
I lost my job 2009 but am now self employed at a much lower income.
What do you charge to do this for us?
How can we do it without having to go thru this maze?
Now an arm would work for a short time but if you plan to stay dont get an arm!!!!!!!!!
What the heck? You can’t take advantage of this program if you bought after June 2009? Home values didn’t drop around my area until AFTER that date! Why this arbitrary date?
James, true on the date, speculation is not double dipping with the new purchases coming in and receiving home buyer tax credits. I say wait until the HARP and now the FHA streamlines program have lost some wind.
Why Wells Fargo charges $85 for credit raport while others $20? Please tell me…(sry English is not my native language)
Wells only charged me $11 you might want to ask why so much.
ULA, you can only charge for what it cost you. It might have been another line item in the gfe. heck, they just raised checking/banking fees 7, so you never know. get it in writing and send it over.
So what is being said is that come after 3/17, which is a strange date because it is a Sat, anyway, I can go to Wells Fargo for example and have them work on a Harp for me? I have an IndyMac loan since 2006- Indymac was shut down and Bankone bought them, do not know when that was, but IndyMac is saying they do not have any info on the Harp2 until April which seems not true.
My mortagae lender says at this time he does not have anyone to service my loan. So what do I do if IndyMac is not doing anything
Chirssy, the date 3/17 was chosen by FNMA has a date (weekend) that they could update their DU software for the New HARP 2 program. So monday, we bankers, can run file in the DU system.
Another thing to keep in mind about that date… HARP has 2 programs (so to speak) Harp Same Servicer and Harp New Servicer. same is wells, boa, chase, etc… new is all Mtg banks, not FDIC banks. the New Servicer needed to wait until Fannie & Freddie updated their software, so we could run files through for our clients.
Last thing to keep in mind… HARP 2 is an voluntary program, so not all banks (new servicer) are doing them and or have the capacity to do them
I have Green Tree in Nevada sold by BofA. As others have said they don’t participate in refi/ HARP in Nevada. I went into local Wellsfargo/ and credit unions and even though I have my 80 with Greentree/Freddie MAc and my 20 isn’t. That Rude Green Tree is disrespectful, bad customer service, and won’t answer questions and really won’t return your phone calls. I bought in 2007 and have always been current. They and other banks say they can’t refi/mod. I had to stay with Green Tree and they don’t participate in Nevada. Is this true or am I being lied to? I have done the right thing. Is my only option short sale? Thank you.
I live in Maryland, and our loan is owned by Fannie Mae. It was our primary home but we moved to a new house so it’s now an investment property. We owe $288,000 on the primary mortgage (SunTrust) and about $45,000 on a home equity line (also with SunTrust). Home is valued around $225,000. SunTrust has approved us for a HARP 2.0 refi, for a 30 year fixed at 4.75 interest rate, with about $3,000 closing costs. Currently we are in an interest only mortgage at 5.75%. Our monthly payments will initially go up by about $100, but we will be paying down the principal. Does this sound like a good deal or could I do better? Scheduled to close in a week or two I think. Thank you.
Rhiannon, its not great, but rates have moved up dramatically the last 2 days… So if you locked the loan, then just finished it out.
Hello, question. If I am underwater and neither loan is backed by Freddie Mac or Fannie Mae and I am current. Are there any options for me to refinance throughnthis program or any other program? The propertynis in NJ. Thank you
Mike, the only other is if your current loan is an FHA loan. If not, then no for now. just let this HARP and the FHA program settle in a bit. then maybe FHA will opens its doors (like Obama spoke about in his state of the union)
Eventhough my loan is owned by freddie or Mac I cannot refinance because of PMI (about $92.00)unless I come up with 40 to 70 thousand dollars. I get denied everywhere I go. I just don’t know what to do anymore. Now I understand why people walk away. Does anyone have any idea? Thank you.
JB, A few things for you. 1) is your current PMI company stil in business? (the one you generated the policy) Who is it btw? 2) Is it Fannie Mae or Freddie Mac? (who owns your loan? its one or the other) HARP 2 is designed to handle PMI, at least waht Fannie designed for it. So its either PMI is out of business and the policy cant roll over or the bank was to lazy to do it. Keep in mind, the original Harp program is still going until Harp 2 kicks for new servicer banks (17th) my point is, the old Harp will not accommodate PMI, so that’s way you are getting denied all over town. you are early to teh party so to speak. make sense? what state are you in?
Retired in March 2008…Refinanced our home in Nov. 2008 to lower interest rate from 8% to 5.75%….husband lost his job in Dec. 2008….we tried to take advantage of HARP in 2011….was denied because we apparently have sufficient income to pay the mortgage and the mortgage lender did not request the modification. Is there any way we can take advantage of the HARP 2.0 program? Do we need to apply where the current loan is being financed at?
Sufficient income should not have an effect on whether you qualify or not for the HARP program. I would contact a mortgage broker who can search other alternatives for you!
Rob,
Thank you! We had sufficient income to pay the mortgage but squeezing to pay other obligations! Our credit is good and all obligations paid on time. Just wanted to lower the interest rate. Called my mortgage lender First Hawaiian Bank…left a message for the bank manager advising that if they cant help us with HARP 2.0 then we would be taking our business elsewhere. Now they want to sit down with us and work it out. Thank you again.
Paula, question? do you receive a pension and retirement income? That could be ok to qualify with HARP. “technically its a non qualifying loan” but a VOE will be run and or some sort of income verification will be checked. who is servicing your loan?
Scott..
We both receive pension incomes. But my husband’s pension is paid by PCBGA & is only $530 per month…he had 24 1/2 years with UAL. Fannie Mae owns the loan and it is financed thru First Hawaiian Bank. What is a VOE?
Paula, sorry, VOE is verification of income. if you meet all of the HARP qualifications, then you should be fine. I would go to a New Servicer on monday march 19th to look into more details and have them run your file in their system.
We were just denied our loan with HARP due to a high debit ratio. Apparently, now they include the student loans that we co-signed with our daughter and that put our debit ratio up. Are there any other type of loans we can consider looking into?
Scott, We are currently at 5.75% and will take advantage of the HARP 2.0 next week. My question is we also have available to us a VA loan. Home value is $260 vs balance of $289. Which loan would be in our best interest? Home is owned by Freddie/Fannie.
Jeane, good question and nice to have options! If you qualify for Harp (that means your loan was purchase by Fannie or Freddie.. meaning you currently dont have a VA loan) So the answer is HARP, because you would have needed to been in a VA currently to do a streamline VA refi. Question- Who does own your loan? fannie or freddie? what state are you in?
Freddie Mac. California. We currently are not in a VA however, would that be a better option (for interest reduction) than HARP. Is VA streamline the only VA option available?
Jeanne, If you don’t currently have a VA loan, then you will not be able to complete a VA streamline refi. (need one to do one) The HARP will be able to help you and is your option. before you go any further, you should make sure you can qualify for HARP. here is the basic test i give.
1. Is your loan owned by Fannie or Freddie?
2. Was your loan sold to one of them by May 31 2009?
3. have you had any late payments in the last 6 months or no more then 1 in the last 12 months?
4. Currently employed?
Those are the big ones and if so, you should be fine.
you can email if you need help with the HARP loan. Thanks
i have a fannie mae mortgage and it closed on july29,2009. does that mean i am not qualified for the Harp motgage.
True… its for loans sold to them by May 31 2009
Hi, I have the same situation as atrain with the exception of Freddy Mac and the fact that loan was sold on Jun 29 2009…. Are there any other options for people like us? Just out of curiosity is there any reason the government came up with this particular deadline of May 31? Are there any plans that you know of to extend it to help more people?
Thanks a lot
Boris, sorry but its true for you also. But i would stick around, because i think they will that date. (allow more in) It will only be based on the success of this program or lack of actually consumers helped. Plus I also think they will go in organized waves. Keep in mind they also moved the MI premiums for FHA streamline a big time. So we will have to deal with HARP 2 and FHA streamlines now. So the dust will need to settle down a touch and programs assessed. why that date, might be that they don’t want the 1st time Home Buyer double dipping (buying) on the housing programs. The FHA date is about the expiration of the FHA UPFMI premium expiring on June 11 2009.
I was told 3 months ago with Chase that I qualified for HARP. Now that I am trying to actively pursue, they now tell me I do not qualify because of PMI/recorse debt. Is that crooked? Or I am missing something?
I have a double wide mobile home that is afixed on a basement. Will the new program help me? I have called 20 banks/mortgage companies and no one will refinance. Even my current mortgage company will not refinance
The bank that I am financed with offered me a HARP interest rate of 4.25% is that the lowest interest rate they could offer me? Can Credit Unions offer HARP? The bank said there was a closing cost of $1500.00 which will be added to my loan. Is that the way it works? Can I get HARP refnancing from someone other than my Mortgage lender?
Jackie, shop around, some credit unions can and one can’t. Lots of lenders can help now, Mach 17th is they date they can run applications.
I am one of the people fortunate to take acdvantage of this. I refinanced in Feb09 at 4.25% for 15 yrs. I have my mortgage w/Chase. They contacted me yesterday and got a 3.5% rate w/no fees. If I pay the same $ as I do now, I can still pay off in 12 yrs and save $27K more in interest. What a great break for me.
Jtct, Nice and you are the fortunate one. But you can do better then 3.5% on a 15yr.
Scott,
you seem to know the truth.
4.6 on a 30yrf Ok or not? Gmac wants to close quick-next week and only 3w total. It’s a harp and feel I could do better???????
Eric, Sorry just saw this post. It’s march 22 and the rates on a 1st Loan only harp 2 , with ok credit is in the low 4′s. And thats even with the big spike we had last week.
Hi! I currently have an interest only loan with Indymac in good standing, never a missed or late payment. I just called them and asked if I qualified for the HARP program and they said that although my loan was bought by Fannie Mae I had a PMI and their current guidelines did not offer the HARP program for loans with PMI. Is this only this bank or all of them? If only Indymac, can I refinance then under the HARP program with another bank? If yes, which one do you recommend? I have to refinance anyway this year because those were the initial terms of the interest only loan when I initially purchased the house. I should probably say that my appt in Miami is valued at $64,000 right now and my loan amount is $171,000. Any advice? Thanks!!
Anna, If your loan can met the Fnma requirements, then mi will not be an issue for you. What state are ou in?
She mentioned Miami, so the state of FL. I could possibly help her (Streamline Financial Group, Inc) we are licensed in FL.
I could possibly help you with your loan. The PMI will not discourage a lot of lenders from helping you refinance.
sorry, yes.
I talked to my lender and it seemed like everything was in order until they said that we were disqualified because our second mortgage was owned by another bank (sounded like a loophole to let them out of it).
botj,
Ask them about loan subordination for your second. I had the same issue. My bank went out to USAA (holder of second) and requested to subordinate the second to my new refi. No problem. So I end up refinancing my first and the second didn’t change.
I’m already involved in a Refi (not HARP). Lender sounds like they’re doing me a favor to get 4.5%. I think I could have a better rate with HARP, especially with rates below 3% these days. Can I stop the processing and switch to HARP with no penalties?
Bill, You will need 80% ltv or higher, loan needs to have been purchased
By Fannie or Freddie and the loan needed have been sold by may 31 2009. I tell my clietnts ” funded” by march 31 2009. Rates around 4% with no pts
I was just told by Wells Fargo that my refinance under HARP was turned down because I was over the 150% ratio. I thought there was no more ratio on HARP? They said it had to do with my house being a two family? They also said it could be an “IT” problem with Freddie Mac, that the ratio is not off on submissions. Does this make sense?
Carlyn, You use the term ratio, but i think you mean LTV (loan to value). there are NO ltv caps with HARP2. question, is this your primary residence or 2nd home? You should be fine, might have to be a manual uw. might need to find a more experienced banker.
Wells Fargo tells me I do not qualify under Freddie Mac because my property is in a resort area? I CANNOT BELIEVE THIS CAN YOU?
Jack, Harp 2 will handle primary, 2nd home and investment properties. So not sure what that was all about and i have not heard of that one before. what state are you in? FL?
I have two loans on my house on DC with Freddy Mac; one is service by Indimac Mortgage, and the small loan by Green Tree. The value of the property is less than the two loans. I was tough by Indimac that they don’t have that program and they recommended me to look for other Bank. What I should do?
Berta,
A couple of things. The loan is owned by freddie, but was to sold to them by May 31st 2009? The other is, its for 1st td only (your 1st loan0. then that brings up another question. what is the 1st loan amount and what is the value determined? what i’m getting at is, The 1st loan needs to be at 80% ltv or greater. It’s not the sum of the two loans against the value.
Can you provide a list of FannieMae lenders that support the HARP 2.0 program. I’ve go a real big problem with my mortgage company and they have pissed me off two many times. First of all good old Bank of America sold my loan off to Green Tree Mortgage which is located somewhere in the central states. I’m in NJ. Good old Green Tree is not licensed to refinance mortgages in NJ. I’m trying to get away from both of these banks that screwed us over. Sorry for the rough tone but I swear BOA did this on purpose to cover keep people like me from refinancing loans originated from them.
Has anyone dealt with TD Bank?
Will, there are plenty of banks on March 17th that can help you with this loan. (the 17th is when “new servicers” can originate the harp2 loans vs dealing with the “same” servicers)
That is important to understand, because if boa is not servicing your rt now. then you will just need to wait a week. I also take it that your loan was purchased by fannie or freddie? (who you make your payments too, is not who it was sold too, when your loan was funded (refi or purchase) Im also sure you check on the sold date on or before may 31st 2009, that needed to have been sold them? so owned by one or the other AND sold to them by may 31 2009. if that is the case, you just need to wait a week and off you go. email me and ill help with lenders for march 17th. thanks
I’d like to hear more about these new servicers that will be available on March 17th.
My situation is similar to Will’s in that my BOA mortgage was also sold to GreenTree Mortgage Servicing and I want to see if I quality for the HARP2 program..
Shannen,
very true. Its March 17th for us (a new servicer) to run Fannie Mae DU (desktop underwriter). we have been waiting, because FNMA needed time to update the software. (umlimted ltv, cltv , lower and capped fees, PMI, etc) IMPORTANT: your “servicer” has nothing to do if you qualify with HARP 2. so greenpoint, 123, etc just collect your payments each month. Your loan was sold to (at funding) to somebody. Fannie, Freddie, private, etc) So you need to go to their website to find out (enter your prop address, etc), then you need to determine if they purchased your loan ON or Before MAY 31, 2009. their are a few other qual details, but those are the 2 BIG ones. Then allow a New servicer to come in and help. what state are you in?
So Scott what you are saying is that come after 3/17, which is a strange date because it is a Sat, anyway, I can go to Wells Fargo for example and have them work on a Harp for me? I have an IndyMac loan since 2006- Indymac was shut down and Bankone bought them, do not know when that was, but IndyMac is saying they do not have any info on the Harp2 until April which seems not true
Chirssy, March 17th (sat) is the date Fannie is going in updating there DU (desktop Underwriter) software. So come monady, we (new servicer or NON wells, boa, chase, gmac, etc) can help ALL of you. So when we run your file in DU (fannie) it will approve the file with 150% ltv, reduced fees and or even PMI on the file. what state are you in?
Scott,
Thank you…and yes, I realize that the loan ‘servicer’ is not important…I went to the Fannie Mae yebsite and entered my address, it shows that ‘it appears Fannie Mae owns a loan at this address.’
I am in FL…
I’m in FL…I checked the fanniemae site and my address did come up as being owned by them and it was purchased before May 31, 2009.
Wells Fargo is denying my HARP application because they said that I did not reaffirm my mortgage with them when I filed BK 2 1/2 years ago, the home was discharged in the BK. They want me to reaffirm the home first and then re apply for HARP and I’ll get approved, but isnt applying for HARP essentialy doing the same thing is I am making myself liable for the loan again? My lawyer said that since the BK is now closed they can not re open it just for the purpose of reaffirming the home, the judge won’t allow it. Will I run into this with other HARP lenders? Thanks~
I have a condo that I owe 104,000 on its valued at 65000. It is owned by freddie mac- I have never been late and am working with a mortgage companay but they want me to pay 500.00 for a apprasial- i’m afaid if I pay up front I won’t qualify- should I do it – or just live with it the way it is?
HS,
Couple things for you. 1. Make your loan was sold to Freddie by may 31 2009. ( to you, that means funded by march 31 2009)
2. Are you working with your servicer on the loan? (ie. bofa or wells or example).
3. Let your loan get ” fully approved” 4. Don’t sign the intent to proceed or their appraisal form Until approved. 4. ONLY the big banks for Harp, so if this a smaller mtg company. Then they can’t submit until march 17 and sounds like the 500 bucks is more like an upfront fee
I currently have a loan with Bank of America/Fannie Mae. I started the process and was told that I owuld not need to bring any money to closing. Now they are tellilng me that I need to bring money to closing because Fannie Mae can only have a certain amount of the closing fees that can go back into the loan. Is this information correct?
Courtney,
If its a FNMA loan, then its not true. FNMA will allow you to add the closing costs to the new loan amount. Freddie is capped on the amount that can be rolled into the new amount.
Are you sure you are correct on this? I believe the FNMA Refi Plus IS capped at 5% in closing costs….
this program is a joke!! I have a loan with Wells Fargo in great standing. Last year, my husband unexpectedly passed and I am no longer residing in my home as it is too much for me alone. I have not missed a mortgage payment since his passing because I want to do the right thing. I requested a refinance through the HARP program to lower my interest rate so I could continue to afford the mortgage payments. I was led to believe this process would be straight forward. To be honest, I dont understand why the process is not much simpler especially for great standing customers who want to do the right thing. After tons of paperwork and an appraisal at my expense, I was told that the loan was denied due to lo appraisal value. First of all, the banks are benefiting from the mess they created. If my house goes in to foreclosure, why should they care. The government will give them up to a certain percentage of the loan back. Plus they can still recover the outstanding balance from me. Wow!! So the consumer suffers while the banks stay in business. I was never for the bailout…its a JOKE!! I want to do the right thing and continue to pay…all im asking is for a little assistance from the guys who created this disaster.
Keshia
Keshia, I want to see if i could help you, but need some more info.
You say “have a loan with Wells and in good standing” meaning no lates. But one important thing, is your loan owned by Fannie or Freddie? Understand that the bank servicer (the one who is collecting your payments each month is Not the bank who your loan was sold to) HARP 2 is designed for loans owned by them. (please go to look up your property on their sites to determine) I think your loan might not be OR (and the second biggest qualifying factor) was not sold to them in the cut time frame. May 31st 2009. So i think whats happening is one or the other is disqualify you under the Harp 2 and they decided to take you down a “normal” equity refi path. which lead to the denial of the loan. Might be wrong, but check your address on their site and check the sold date also. If so, you should be able to use HARP 2.
Hi Scott, are you able to shed some light into Kathy and I’s situation below: We are both qualified for HARP and want to refinance our home that was discharged in our BK. I have been living in this home for 8 years now and filed BK 2 1/2 years ago and looking for a lender to refinance with, Thank you..
Hi Lynn, The big difference is it’s Freddie Mac vs Fannie. Fannie clearly states and waived the bk pretainer to harp. Freddie runs to a beat of a different drum. I’m a ” new servicer” and start with harp next week. Freddie has been slow to for change. I’ll research a touch more, but email me and I’ll have it all for you. You should and will be fine. Don’t pay anybody money upfront. Let’s this play out and have fll disclosure in the week or so.
Thanks Scott and Lynn for the information. I continue to research the issue and hope that Wells will modify this restriction to align with the eligibility requirements established by Freddie Mac. I too plan to write a letter to the “world” once I get my denial letter.
Kathy, what state are you in? Ill help you with this.
Wells Fargo contacted me and pre-approved me for the Harp 2 program as Freddie Mac owns my loan. I disclosed during the pre-approval that I had a Chapter 7 bankruptcy that was discharged in August of last year. The loan officer said that was not problem. Several days later, I get an email from the loan officer stating that if I did not reaffirm the mortgage that I do not qualify for the Harp program. I did not reaffirm. I have done extensive research on the Harp 2 loan since then and spent one hour with a HUD counselor and I cannot find anything that disqualifies based on this aspect. The HUD counselor stated that this should not disqualify me. Do you have any information on this?
Hi Kathy,
I am in the exact situation as you. I would like to be able to get this HARP refi but when it went through underwriting, they denied me for the reason that I did not reaffirm our home during the BK process, It is not a Fannie Mae/Freddie or even a HARP rule but an overlay that wellsfargo is requiring me to do. My problem is that our atty and judge in our bk case will NOT reopen the case for this purpose and the law stated that it shouldnt. I am now trying to get in contact with someone at Wells to see if this is even a possibility or just a way for them to say NO. Lets keep each other posted on our progress since we are facing the same challenge.
Hi Lynn,
I contacted Wells Fargo again and spoke with a different Loan Officer who had experience in the bankruptcy department. He confirmed that this is a criteria and told me it was not anywhere in writing and that it was a criteria of Freddie Mac. I am pursuing this aggressively to find out where this is in writing. One option we may have is to refinance through another lender; however, we would lose the BK protection. I will keep you posted. Kathy
Kathy, thanks for your reply, makes me feel better I am not alone. I did try to go through a different lender and the problem arised once again, The system they use to underwrite the loan is all automated and since the debt was discharged in our BK, it does not pull any mortgage balance to refinance which their system needs to read. You would think well just punch it in manually, she said thats not how the system works. I even went as high up as the Executive Office with Wells and filed a compaint on their decision to see if it can be overridden to no avail. You would think something so simple would be an easy fix. We are so lost as to what to do..
To both Kathy and Lynn. Once March 17th comes around you will be able to get a “new servicer” to possibly take on your loan with the HARP program.
I do plan on reaching out to another lender. Just received the denial letter from Wells which they indicate I do not qualify because of the bankruptcy. They did not say it was because I did not reaffirm the loan. I plan to send letters to those who might listen because Wells misrepresented to me over the phone that it is okay if I have a bankruptcy.
You’re right Kathy, Wells led me to believe the bankruptcy would not hurt my loan application. In the end they denied the loan for not having reaffirmed it in the bankruptcy. They said there is nothing on my credit report showing a mortgage debt to pay off with the refinancing. I really need a lender that will look pass this problem and make the loan happen, I am having no luck and cant guarantee that the 2.0 updates will help me.
I want to refinance my house. I have 2 mortgages One at 7% and One at 6.25%. I have these two so I didn’t have to pay PMI when I bought my house. I want to refinance but they are telling me I owe more then the house is worth, which I question. Where do I go from here ?
Glenn,
HARP 2 program is for 1st TD’s (your first loan). So if your 1st meets the HARP requirements, then you could lower the 1st and subordinate the 2nd loan. But make sure the 1st can qualify, before you send much time with the paper work.
I am in the exact same situation as Glenn. My mortgage is a Freddie mac. Will I be obligated to get a mortgage insurance?
mf, No, the rule of thumb is, if you came into harp without PMI. You will leave without PMI. The opposite is true also. If you have it… you will leave with it.
MY MORTGAGE IS AT 9% AND I RENT IT OUT AND LIVE SOMEWHERE ELSE. THE HOUSE IS WORTH 438,000 AND I OWE 419,000. DO I QUALIFY FOR THIS MORTGAGE
john m, good question. but before that, have you checked to see if fannie or freddie own your loan? (go to there sites to find out) Then did you purchase it by may 31 2009? lastly and to your question, did you purchase it as a primary? or was it a rental at the time of purchase?
I have about 15k in equity in my home but my LTV is 90%. Would I be reuired to pay PMI if i refi under HARP?
No if you don’t have PMI on your current mortgage and only have one mortgage. HARP 2.0 is primarily aimed at mortgages owned by FANNIE or FREDDIE and are in good standing, but under water. In your case HARP 2.0 might not do much for you since you are not under water.
That is not correct. Harp can help mark refi hs home. Harp requires only 80% ltv or greater. So mark can refi and not be required to add pmi to his new loan.
So great program , because the fees are capped
I have mortgage that is a little under water and my credit is good but i have a pmi. why does this matter if you are refinancing ? Help
It will not matter, but you will have PMI on your new loan as well. The thing you want to remember is “can I get a new lower interest for a longer fixed period”?
I live in CA and was advised that HARP 2.0 loans only apply to a first mortgage; my lender says my home equity line won’t qualify under HARP 2.0 (and it’s my biggest loan). Does anyone know if this is true (HARP 2.0 only applies to first mortgage and not to a 2nd mortgage or home equity line)?
JoJo, that is true. 1st td’s only.
My current loan is with Indymac/One West Bank. When I call them about refinancing with the HARP 2.0 program they say they are still waiting to see what it is going to look like, etc. They are still saying the 125% LTV but tell me that others are talking about the 2.0 that removes that and the appraisal….that One West is still waiting to see what it is going to look like. Am I getting the run around or should I call and ask to talk to someone who specializes in HARP at One West (would that person even exist)?
Cori, the reason why is because they might not sell directly back to Fnma. Meaning an investor is capping them at 125%. You need to find a bank to as no investor/ middle man blocking its way back to Fannie.
I have a rental property in MO that has PMI. It currently is slightly underwater, and it’s a FNMA loan. From what I’ve read, I believe it should be eligible for HARP, except for conflicting answers about the fact that there’s PMI.
You probably quality under HARP 2.0 except if you have PMI on your current loan, they will require you have obtain PMI on the new loan.
True, You enter a harp 2 loan with pmi, you will leave with the same policy attached. Issues are , and I would research your current pmi servicer. Many have gone out of business. So that reason, would a reason they will not complete your new harp loan.
I have my present mortgage with Wells Fargo, back in October I was consulting with one of their Home Mortgage Specialists…who said it was a straight forward Refi. I faxed info to him and finally sat down with him first week in November…a few days earlier I was laid off. The lay off was supposed to be until the end of February…so I did not tell him about it since I had never been late or missed a payment…and nothing would change with that process. The paperwork kept dragging along…every day there would be another document necessary…yada yada. Finally, a week ago they told me when I called, that the latest income verification came back as”could not verify” so they declined the Refi. If I already have a mortgage with them, and the only difference will be a lower payment on my behalf and more closing money for them…why is my Refi declined?
I am convinced that when you try to refinance with your current mortgage holder for lower payments they ask themseves”Why would we reduce the amount of money that we are making on this loan?” “Do you think that they will move their mortgage to another bank”? Statistics show that when the refi falls through the mortgage stays there. The loan continues to make the forecasted profits. We are talking about hundreds of thousands of loans. Think about it! They are banking on the fact that you not going through the rigors of what you just went through with them to reapply somewhere else.
That is not the case. The issue is he does not have a job. There is not a company out there that would refinance you without employment rather you have the loan with them or not. In closing, think about this if you had the loan would you refinance the person for a new loan with a longer term who doesn’t have a job. I think not.
Welome to the world of the big 4. Unfortunately you got caught in there very slow 90/120 process. They are taking locks on rates at 90 days minimum.
Then the bank will run what’s called a voe on you. Verification of employment. So a backed log system and the loss of the job killed it. So sorry for you. Rates will stay low and the program is here until dec 13. So you will find wk again. Just don’t go to wells again.
We were told that we don’t qualify for the HARP because we make too much money. We went to our lender Citimortgage and was told that there was nothing they can do to help us with our 2nd mortgage that is at 9.775%. We are good on our mortgages, never missed, yet have no equity so no ability to refi. I now understand why people walk away from their homes, it seems like the only logical move. Any suggestions about what to do, would be really appreciated!
It sounds like you need to consolidate both mortgages. If your 1st mortgage was sold to FNMA then you have a chance to participate.
Harp was designed for first td’s. Not 2nd. But harp also has no limitations with income. Just a lack of equity refi program period. Just check to see if fannie I frefddie own the 1st. But Make sure you “funded” that loan prior to march 31 2009. ( it’s really may 31, but that’s sold to Fnma and you wouldn’t know sold dates. Just when you funded the loan. I spoken to Fnma and they said 60 days was a good window)
Does anyone know if there are HARP 2.0 loan programs actively in place which would cover properties in Colorado? Every place I call tells me that they don’t have a program in place yet.
We are facing the same thing. I am working with Quicken Loans and they said that they are still inevitably waiting on Fannie Mae and Freddie Mac to finalize some things. They anticipate finalization by mid March. Apparently something to do with the LTV ratio. According to HARP 2.0 there isn’t supposed to be a limit set for fixed rates but apparently thats not the case. They will be setting a limit and even then the banks don’t have to take the loan. I live in Vegas where its been hit the hardest and I am at 171% in my house already which is low considering some people that are much higher. I hope they can get it together, because getting the lower rate will make a significant change to our financial situation.
I was told to call back after March 19th.
Lenders are taking applications now
Which lenders??
Cyndie,
I, too, live in Vegas. I was told the same thing by Quicken Loans. They said they should have the info by March 17th. I am waiting. Let us know how you did.
I contacted a company who were advertizing HARP 2.0 refinance. The loan originator explained to me that the expectation, of realtors, is that the program modifications will help very few people. He advised me to buy a new house and then do a strategic foreclosure on my existing property. I’m in Las Vegas with an LTV of around 160%. I have since contacted other companies who have simply told me they will not be participating in NV.
Bank of America, who have stated on their website that they will participate in HARP 2.0, and offer it to all of their eligible customers, sold my loan to a debt collection agency 4 months ago. This is despite me never missing or being late on a payment and having an excellent credit rating. I have heard that they are selling off all loans that would be eligible. I am forced to believe that doing the honorable thing and standing by your mortgage is in fact just dumb. The financial institutions will play the moral card but where are their morals. If by the end of March HARP 2.0 does not come through – I will have no problem walking away from my current home.
Your loan terms should not change If your loan is owned by FNMA you should be eligible. If the collection agency is trying to foreclose contact a good real estate attorney
I’m in the same situation. Chase sold our mortgage to LBPS and then that I guess was acquired/absorbed by Seterus, both companies who focus specifically on debt collection. Never missed a payment, never been late on a payment. I’m in AZ, my 80% 1st mortgage is now somewhere north of 125%. I guess they do that because they play the odds, and the odds are probably not in their favor that the homeowner is going to stay current on their 2x underwater loan.
If HARP 2.0 helps us out, then we’ll pay our 2nd mortgage off faster. The buying a new home and strategically foreclosing doesn’t sound any different than what a lot of folks have been doing which is generally referred to as “buy and bail”. That is considered mortgage fraud and apparently you could be tried for perjury because on the new loan for the new house I believe you’d have to state what you are going to do with the existing home. If your not selling it, then you’d have to state that you are going to rent, which would be completely false once you took the bail route. There are probably so many thousands if not tens or hundreds of thousands of folks doing this, so you could always play those odds.
Morals are tough to deal with in these situations when you have your middle-class neighbors bailing and foreclosing driving the cost of your home value significantly down, and white trash families moving in squeezing Ma, Pa, the kids, the illegitimate grandkids, the new great grandparents, beat up cars pouring out of the driveway onto the street all in a house that they picked up for less than half of what you paid for your home across the street 5 years ago. No better way to put it than it sucks.
I suppose if you find a new job which requires you to relocate, you might be able to get out of it with a decent relocation package. Then it wouldn’t be buying and bailing. It’d be buying, relocating, attempting to sell, and being forced to foreclose.
Dear Tim, sounds like you are very bitter. If I may make a few suggestions for you. 1. Sell your “high dollar” upscale home to one of your upper class colleagues at a nice discount (since it sounds like you should be able to wipe your ass with Benjamins) & it would simply get you out of your now “middle class, white trash” depreciating neighborhood. Or… 2.Just “pay it forward” and sell your house to another less fortunate, trashy family & just be gone! But you might also consider taking the high road and setting a positive, clean example of living a fine life in your wonderful home & maybe others will be inspired!Good luck.
Mark, the HARP 2 refi is alive and well in NV. but by the sounds of things. you might not meet the qualifications?! 1) owned by FNMA 2) your “current” loan was sold to FNMA prior to May 31 2009. go to the loan look up and see if those are true. then a NV harp is in order.
HARP 2.0 isn’t supposed to be in place until March 19, 2012.
Harp 2 is open business now… You need to understand that there are two harp loans , so to speak. A ” same” servicer and a ” new ” servicer. Same is boa refi a boa client. New is when I would take that loan and refi it under harp. The “Same” started in dec and the ” new” have started but we can’t run what’s called du. That’s because Fnma will have it computers updated on march 17. We know all of the guidelines. I have over 50 clients apped and ready to go march 17th. No need to wait. Get your paper work going now. Or go to a ” same” harp lender, but that is least 90 days +.
I purchased my home in Dec 2007 with a 30 conventional at 6.5%. I just tried to refinance, but I owe $244k and the value came back at only 235k. They want me to bring 11k to the table which is not possible. Can I qualify for HARP?
Ryan, for what I understand if you have a Fannie Mae or Freddie Mac loan you should qualify as long as you haven’t missed more than 1 payment or been late more than once in the last 6 months. In your case it seems your LTV ratio is low…so the bank would be at less risk, where as in my case I owe $80K more than what mine is worth and so my LTV is higher. In your case you should be able to qualify for fixed or arm (though of course fixed would be th better option). This program is supposed to be for individuals who are upside down/under water on their homes, who have good credit/payment history but because their home values are so low can’t refinance (according to what I read). We had a bank tell us the same thing years ago, and its like why would I give you all that money to save money each month. If I had a chunk of money I wouldn’t be worrying about trying to save on a payment each month. Good luck.
P.S. What I mean by a low LTV is that you meet the requirement of having to exceed 80% LTV with you being at about 103% (per bankrate.com). The banks should be more likely to accept a new loan with you. Mine is at 171% and though there is supposed to be no cap its probably less desirable, lol.
Ryan, you can refi easy. Harp is designed for consumers with Fnma loans, funded prior to march 31 2009, have less than 19% equity and are current. What state are u in?
Looking to refi, current I think green tree owners my loan. Owned since 2007 never missed never late. House is worth approx 20k less than what I owe. Can I use HARP?
We tried and were told because we refinanced in July of 2009 we did not qualify. They said we would have had to have closed the loan by May of 2009 to qualify. Our house is worth approx 20K less than what we owe, we have excellent credit and have never missed or been late on a payment. It frustrates me that this bit of information is not included here.
Jerrit, yes you can. But you need to look on Fnma or freddie mac website. They need to own your loan. The bank you pay your bill to is called your ” servicer” not the one who owns it.
Marie is correct also. Your loan needs to be purchased by may 31 2009 by either one of them to qualify.
I just tried to re-fi through Quicken Loans and everything was going great until the appraisal. I was told I was 132%LTV and they killed my loan under the HARP program. I was under the impression the 125%LTV was now not a factor. Now I’ve paid them $500 which includes the appraisal that just sunk me. Something is not right here!!
Mark, who is your current mortgage lender? Quicken Loans does not have HARP 2 in place yet.
Have them give you lender credit for the appraisal since it’s not needed in the next phase of the HARP (2.0) loan. If they want your business a $500 credit is not a big deal to them.
Mark, That was not good business. Quicken is considered as a new servicer to harp. We can not run du until march 17. ( that’s when Fnma updates they du to allow 132% ltv to be approved) The issue is that 500 went to the appraisal company. They just collected it. Hvcc .
Can I refinance two properties that are under one mortgage now with Wells Fargo at a very high interest rate.They won’t do it.I would like two separate mortgages.
I am pretty sure you would have to do a regular cash-out on the home with no mortgage and then use those funds as a principal payment on the one mortgage. Then refi the rest of that under HARP. I have no idea what the bank requirements are or if this is feasible. You might be able to get the same bank to do both loans with a simultaneous closing and just take the cash and apply it to reduce the principal on the full balance. I would definitely inquire.
I am interested in refinancing with the HARP program. I have a Freddie Mac Fixed and I couldn’t Dow streamline refi because a verbal VOE was required and I don’t work anymore. My spouse is it on the loan and he pays all of the mortgage payments. Would I qualify for the HARP program?
Does your spouse work. The voe for shoud be fine. Evn though no voe can be taken with you.
I was told by a Wells Fargo lender that when you have a Freddie Mae loan with Wells Fargo you have to stay with them. So my hands are tied,I hold my breath hoping to get a honest loan.
Carol, I’m a Real Estate Broker and former banker and I don’t think that is correct. I have a friend that works at Wells Fargo. I will check for you.
Stephanie,
I am in ch 13 and do not have a FNMA or FHLMC
LOAN, but am upside down on my mortgage do you know if I would qualify for the HARP and who I can call? Any help you can provide is greatly appreciated
Not True!y you can refinance with any lender, I can refinance your loan
Fred, can you refinance a 1st and 2nd non FHLMC OR FNMA. We are upside on ours and in bankruptcy. Any help you can provide is greatly appreciated
NOT TRUE. You can refinance your Fannie Mae loan with any mortgage company.
Citimortgage was shocked when I quoted them for my Freddie Mac HARP loan and told them NO! She said “We’ll we already hold your loan.” That may be true, but they also where offering a whole interest point higher, and higher closing costs.
Not true… You can go to a ” new servicer” for a harp loan.
I too have been trying to get a Harp loan since time immemorial but my bank Hsbc has ben using a delaying tactic in fact one of their associates has told me that the upper echelon of the bank has been stating that the program will go into effect next month for the past three months! My home is above water and I haven.t been late or missed a payment. The banks and Fannies are deceitful( Freddie has fixed the deck against the American homeowner in my opinion.
Sometimes it is because of what Fannie and Freddie tell Fannie Mae lenders on timing. Just found out Fannie Mae will update release in mid-March so higher ltv and cltv shortly after that.
I work at Credit Union and can broker nationally so never wish to mislead.
Do you qualify with an active chapter 13 bankruptcy, or do you have to wait for it to be discharged?
HARP 2 allows you to refinance with an active CH13 BK, as long as you have made the BK payments on time. Email me for more info.
I was told you cannot refinance with Harp with an active chapter 13..
Hi Todd,
Seems like you really know a lot about the HARP 2.0 program. I just got rejected for this program for the second time today—-first by my present lender (Chase) and now by a smaller mortgage company because of my credit history (Mid FICO score is currently 633) but I have had one charge off that I am now paying through collections and I have used consumer credit counseling services for assistance with paying off my other debt. While I know that this might impact my eligibility for conventional financing, I thought these factors weren’t significant if you met all of the HARP eligibility requirements. If you know of any company that could assist me with a HARP 2.0 refinance on my property in Colorado, I would be sincerely grateful for a referral. Thanks for your time.
I am in ch 13 and do not have a FNMA or FHLMC
LOAN, but am upside down on my mortgage do you know if I would qualify for the HARP and who I can call? Any help you can provide is greatly appreciated.
When is the date for this program going to be extended to loans owned by FannieMae/FreddieMac past 6/1/2009. I tried to refi on my loan that was purchased in 7/2009 and cannot because the ltv went up to 87%. This program is unfairly penalizing those with newer loans.
Is an appraisal and credit report required when refi-ing under the HARP2? Information I’ve read say no; but, the loan officers say yes. I’m in a condo. Is there an exception with condos? If so, why? Any information you can provide would be greatly appreciated.
Hello, Appraisal maybe, depends on what du says in your file. Credit , yes.
Condo, no big deal.
Wells Fargo Is not good for me my current lender – i will try a new bank as sam suggest.
Why? What are you trying to do?
So, it seems to me that if I was prudent when I bought my home. Stayed within my means. Did not let the Fannie May or Freddie Mac crooks take advantage of me. I am now left out of the loop on the refinance programs even though my home value dropped just like everyone elses. Am I to understand that we allow Fannie Mae and Freddie Mac to continue to operate and from what I am seeing on these comments provide extensive double talk and hood wink more hard working Americans into refinancing. This is the stuff the causes actions like the 99% protestors. Get these crooks out of power, stop the superpacs. Vote for someone backing the Fairtax Act and lets get our country growing again.
I bought my town home in 2006. At the time I was instruceted to do an 80/20 loan. The first loan is through Chase (backed by Fannie Mae). However, my second loan is through Citi Mortgage which is not backed by Fannie Mae or Freddie Mac and is a baloon after 15 years. I currently owe $50,000.00 more then what my home is worth. My current interest rates are 7% and 8%. I am current on all my payments and my credit score is 820. I get different answers dpeending on who I talk to. I even called the 1-888-995-HOPE and they told me that HARP 2.0 guidelines will not be released until May of 2012. Do I have any options? Ultimately I would like to refinance both loans together with a low interest rate. Is there anything I can do regarding what my home is worth? Meaning, if I decide to sell I can’t because I don’t have the $50,000 to pay off my loan. Any information you can provide would be greatly appreciated!!
Geminii Girl,
which state is your property in?
You have many options available to you. With the new revisions to the Freddie/Fannie HARP program you can refiance your home even though you have that second. Key point is whether or not your first mortgage is less than 80%LTV. If you haven’t found anyone to help with this issue you can always contact me.
My vacation home was purchased in 2008. Loan is 299,000 (bought for $400k)and the house is now worth $240k. One West (indymac has loan)
Do I qualify for HARP 2.0?
Joni, have you looked on Fnma website yet? If yes ,then yes harp 2 will.
I’m in the same boat you are. bought a condo in 2006 as well. Totally upside down and my 80 loan is interest only so I’m lost right now with no options.
Geminigirl, You qualify for the 1st only. Harp is designed for 1st loans owned by Fnma or freddie. You need to look at the savins of the refi, then add that savings to payoff the second. I have a client who s saving 569 ever month, then paying off his 44k second in 3.5 years.
can I still take advantage of the HARP program if I haved filed banckruptcy
No. If you are in Chapter 7, you must wait 4 years from the date you are discharged.
Is there any programs available to assist home
owners who have filed Chapter 13 Banckruptcy?
This is not true. Even with traditional refinancing, with good (rebuilt) credit, you can apply for a mortgage 2 years after a Chap 7 discharge.
Yes, I am going through a HARP 2.0 refi now and we’re less than 2 years past our discharge. BK is not supposed stop you in the HARP 2.0 plan from what I have been told.
my BK 7 has just reached the 2 year discharge date,may I ask who you are working with, I am in California
Thank you for any help
Yes. Who is your current lender? HARP 2 allows a refinance regardless of how recent your BK was discharged.
Yes. HARP 2 allows you to refinance 1 day out of Ch7 discharge, and you can currently be in Ch13, but must have no lates on the payments.
I had a Chapter 7 bankruptcy discharged in March 2011 but I was told by my lawyer that no trusty in the State of Minnesota will allow reaffirmations on Mortgages. Will I still qualify for the HARP program if my mortgage was NOT reaffirmed at time of discharge?
Hi Chad, I am in the same situation sarviced by Wells, They denied my HARP for not reaffirming my home when it was discharged in our BK 2 1/2 years ago. Do you have any new info on your case? Thanks
If my is serviced by Green Tree to I have to apply for refinacing through Green Tree or can I go to another bank? Green Tree Sucks!
green tree only service your loan.formerly serv. bofa ami also – we will go with a new bank as sam says!
Paul, no. What state are you in?
Looking to refinance. Purchased house in 2006 and I have qualified for any previous programs. I owe more than 100k more than home is valued. Would love to refinance through HARP II but my mortgage is with M&T. Is M&T partnered with one of the five banks named in program?
Zap, is your loan owned by Fnma or Freddie? ( You can go to there websites to find out). If so, yes.
Hi all. I called today about the HARP program and was told that I would have to get an appraisal and that I actually had to have a minimum of 5% equity in my home to qualify for HARP since I have PMI. I thought this program was meant for the folks that had actually lost value in their homes and were looking to refinance but were unable to do so normally because of their LTV. I’m confused. And everyone keeps talking about something changing in March. Will this eliminate the 5% equity requirement and appraisal requirement???
it s true try gmac u cant have been late must be fannie may
Who is your current lender? LTV should no longer matter on HARP 2. I can possibly help depending on who your current lender is.
Just wondering what the credit score criteria is, if any. I have someone who is current on their primary residence but in foreclosure on their investment properties
Can you advise?
Everything about Harp and other plans is about homes under water, what about the hundreds of thousand or millions of home owners that are not under water. In fact many of us have great equity in our homes. Below 80% LTV but, we can’t refinance conventionally because either we are “under employed” too high DTI ratio, credit scores below 710 or in some cases unemployed. Even with these obstacles we are current with our payments and have high interest rates. WHERE IS OUR RELIEF???
This is my problem. If you find something for folks like us, let me know.
So I’m to understand that unless your mortgage is owned by fannie or freddie you are ineligable?
That is correct but doesn’t mean all loans owned by them are eligible! If your bank dumped your loan after may2009 to Freddie or Fannie they are ineligable also!!
I live in Califrornia I bought my home in 2006 for 265k I owe 215 K. My home is now worth 130 k. I am fanny Mae backed. My mortgage has recently been sold to Greentree. They say I don’t qualify for harp 2 because I have a PMI. Is that correct? My interest rate is 6.35 and I would love to get it lower. If not I will just walk away. I have no late payments.
This is not true. The mortgage insurance companies are on board as well.
I was told that the borrower could not have PMI on the loan. Conflicting inforamtion that needs to be asked of the loan company/bank you talk you.
You are not eligible if you have LPMI, lender paid mortgage insurance.
I am wondering if I should wait to refi my home at this point at 4.5% or wait till 3/1/2012.
I submittted my HARP packageAugust 2011 via fax as instructed. Have confirmaiton the received it, but it mysteriously disappeared. Did not know this until I called in November to find out how our application was progressing. Was told to resubmit ad now there are new forms, so waited for the forms. Yesterday I called to find out why our paperwork keeps disappearing and how can they offer services when they clearly are not interested. Now told we need an appraisal? First time to hear this news. But was told we were over 25%, not 125% but 25% is the maximum for HARP consideration. Then the US Bank HARP person made the mistake of saying to me that yes, I can see your interest rate is 6.25% and HARP will certainly be helpful to you. Well, I wasted no time in telling her that yes, US Bank (where USAA put our mortagage) was collecitng that interest rate every month and instead of helping us achieve a lower interest rate they continue to take advantage of a 100% disabled veteran and a govermnet employee with a frozen salary! Now, like may of you, I have to wait and see if March 15th brings a program for us to take advantage of HARP.
Have you checked on a VA/Disabled Vet Loan? Don’t have all the info, however just found out you can supposedly refinance now. My husband, and I are in the same boat. THANK YOU FOR SERVING OUR COUNTRY!
I was told that I can not refinance with the HARP the 2nd time. My first refi was back in Jan 2011 on HARP. Can I refi again with the lower rates today through the HARP?
I was wondering the same thing. Refinanced mine in 2010
Nope. Once you use HARP, you cannot use it again at this point.
I was told by my current mortgage holder, Wells Fargo that I cannot apply for a HARP loan if I drop one of the co-borrowers from the original mortgage. I need to refinance after a divorce and I was the only co-borrower with income at the time of the mortgage, but I applied my spouses name just for death benefits should I have preceeded her in death. I can easily qualify again for the new loan, but the lender says I can’t apply without my ex-wife on the mortgage and I need to remove her name per our divorce decree.
This is not true. You can drop a borrower as long as you can verify that you have been the one making the payments for the last 12 months
I have been told I can refinance with my current lender (GMAC)now at 4.5%. i am wondering if folks believe that there will be some competition once the software is distributed on 3/1/2012 and the interest rate might be lower.
We were told on the phone that we would go from 5.875% to under 5%. We were told no appraisal fee. We were told it would be about $1000 to do this. After all said and done it went down to 5.25%, there would be an appraisal and we went from 1000 to $2600 in fees, plus we had to get flood insurance. What a rip off. There were no savings after they were done.
No wonder nobody does these programs, they don’t help anyone except the mortgage companies.
I am currently employed. Started a new job on 6/28/2011. Was unemployed for a year and a half before I started this job. Will that disqualify me?
No Ray it will not. after an extended time of unemployment you need to be back on the job for six months. Looks like you have accomplished that. If you are in California, send me an email. or find a lender in your area
Vickie, I applied for this program through Quicken Loans and wound up paying $350.00 for an appraisal. I have a loan through USAA (which is not participating in the program) however it is owned by GMAC and backed by Fannie Mae. Quicken told me that since I owe $128,000.00 and my home is now appraised at $85,000.00 I am eligible only if I can come up with an additional $25,000.00
1)I thought this program did not require an appraisal
2) I thought the CAP had been removed.
Also I subscribe to equifax and have access to my three credit reports. According to the “big three” my credit score is approx 740 yet when Quicken looked it up they said it was 643 I immediately went on line while I had them on the phone and pulled a brand new report which stated my score is 741. Quicken could not explain the discrepancy.
Mark,
The LTV caps should be removed in March also appraisals may be removed as well. There is light at the end of the tunnel.
I have a question after reading a lot of these post’s. I qualified already for harp 2.0 4 days ago with BOA. im waiting on paperwork. My old Mtg 2008 did not have “PMI” my question is will they try to add PMI to this new mtg.?
I was concerned about the PMI as well. I was told that my PMI situation would not change even though the LTV would change. However, I am running into other things, like an appraisal that the instructions say is not required.
Hi, I called BOA 4 days ago to apply for Harp 2.0, and was told they were not taking any applications, and would call me back in 60 to 90 days! I am in WA state. Curious what state you are in?
good luck with BOA i have tried ever since the Obama programs were announced ..i didnt realize they put investor PMI on my loan and they say they cant hellp me,, so i have since contacted another lender that ststed they did not understand why BOA said they couldnt help me they other lender had made it passed all hurdles so idk if BOA really wants to help any of us i actually contacted them on the first day of dec 2011 and they told me to call back in Jan only to tell me they couldnt help me.. i think they should help all of us that pay our mortgage and are underwater or anyone that needs it .. hope i can get over this last hurdle then i can say good ridence Boa
I’m in the exact same boat. B of A told me because I have lender paid mortgage insurance I don’t qualify. I’m going thru a mortgage broker to validate that.
Wells Fargo told me the same.
I’m in Indiana. I was told 60-90 days also
If you did not have pmi on your original mortgage, you wont have it with harp. Refinanced in December 2010 at 103%
Dave, who did you go through for your refinance? I had a loan writer tell me yesterday that since you are still over 80% LTV most lenders would require MI, even under HARP.
My mortgage was originally held by Bank of America, however M&T took it over. Freddie Mac is the investor. When I spoke with a representative with M&T regarding the HARP 2.0, I was told that I needed to wait until mid March due to the fact that they are not able to help anyone until mid March due to the fact that Bank of America is still showing as the lender and they are working on the adjustments. Is there any way around this?
I have been reading up on the New HARP and I found out the banks have been given permission to implement the new HARP since October 2011. Banks have had ample time to implement these changes. The banks have also had enough time to collect applications, which according to my research has been since December. I too had my loan through BoA and my loan was ‘sold’ to M&T. When I spoke with M&T they said for me to ask again in January. I called in January and was told to call in February. With your information and what I have experienced I have come up with a conclusion. BoA sells their loans, not because they want to help smaller businesses or decrease how much is owed to them or because they want to increase their positive cash flow reporting, but because they are eventually going to lose money due to the specifics of the HARP program. In this case everyone is helping each other out, except for the owner of the home in question. BoA sells loan to M&T, M&T takes their time implementing HARP program and makes the investor, Freddie Mac, a little more cash off of us, the RESPONSIBLE OWNERS. Bottom line is Freddie messed up and they know it. They bought loans from BoA knowing they were from responsible owners who would pay and they can take their time implementing changes to programs that would help them lower their payment. All that said, WE CANNOT DO ANYTHING TO SPEED UP THE PROCESS! We can’t even choose another bank because WE ARE UPSIDEDOWN! BoA looks good! Freddie Mac will report XX amount of positive earnings, (caughing) I mean M&T Bank, and both of them have us haninging by our tails. It’s just sad.
Called M&T today – same situation as above except the initial message indicating that M&T may be considered a debt collector and any information I would provide could be used for collection purposes didn’t make me feel too comfortable …
Was ultimately told that b/c having a conventional mortgage and being underwater I would not be able to refinance until April …
So M&T has little to no interest to refinance at a lower rate. I’m seriously considering going into default as this seems to actually get them thinking about alternatives. Last but not least being asked when they could expect my February payment (never been late on the mortgage) was truly a wakeup call in regards of debt collection agency practices. Too bad that I have no saying in who can buy my mortgage and who can’t … local credit union may be a safer bet and stocks in a ruthless company making profits to round it up?
Michie, what state is your loan?
I’m interested in refinancing my mortgage to lower my payment and to get into a fixed rate. Our first mortgage is for $326,400 and the second mortgage is a home equity loan of about $76,000. Our home is now only worth about $310,000 Freddie mac owns the loans, but both are serviced by ONE West Bank who tells me that they do not have a HARP program. I have check all the criteria and it seems we are eligible for the program.I really would like to use this program but I don’t know who to go to. Can someone please help?
Hi Tony
I will be able t
I don’t know what state you are in, but try a mortgage broker….they will help you. or e-mail me back if you are in Michigan. Don’t take the answer from one bank, if they aren’t in the program, someone else will be, so make those calls.
Greetings Tony,
I am a mortgage banker and I can refinance your home for you. Pease email me so we can get you qualified.
How can you help when everybody else can’t. i am in NY
Nancy,
I am located in Michigan and am interested in refinancing using the HARP 2 terms. Freddie Mac website says I am eligible. CITImortgage is my current lender, but they are not interested. I have talked with another broker who says HARP 2 in not in place yet. Can you help me?
we went to chase to get a harp loan they said they were pretty sure we would qualify, but when we went to chase they said it wouldn’t go through because of a bankruptcy my husband and ex-wife filed in 2004
I went to Chase today to see about refinancing under the HARP program also. They said that our credit rating was excellent, in the 800′s and that we qualified for a “Chase” refi at 3.375% on a 15 year note, from our current 6.75%, 30 year. Our bankruptcy was discharged in 2000, 4 years before we even purchased our house. The bankruptcy fell off our credit reports in 2010. They said we did not qualify for HARP because of the bankruptcy. Can anyone shine some light on the validity of Chase’s comments?
TexasMo: I am ready to close on a Chase HARP refi and we also had a bankruptcy back in 2001 (discharged 8/01) and they never mentioned it to me at all.Our score is about 800 also. I would call them back and speak with a supervisor. I got a 15 yr mtg @ 3.75% fixed rate.
TexasMo, you can do the HARP… Keep in mind, you deal with the loan officer and not the “bank” per say. The intellectual capital in the BIG banks is poor. That is because all of the compliance changes. harp2 with deal with current bk’s
I am with Wells Fargo and have gotten the run arund for months. Now that the Harp2 elminates the 125% we finally qualify so I thought . Was just told my mortgage doesn’t qualify because there are restrictions put on it by Freddie Mac but of course Wells Fargo doesn’t know what it is. They service the loan. I contacted a Freddie Mac rep who said that Wells Fargo needs to get in touch with them and they would be able to work out what it is. The Freddie Mac rep gave me all the details for Wells Fargo to contact them. Customer does all the leg work and Wells will still do nothing!! How can that be??
Your problem is that the bank employees answering the phone don’t know what other bank departments are doing. Try transfering to a different department or supervisor. There are numerous departments – Foreclosure, loan modification, etc. Save yourself some time & get a local Realtor who knows the biz to look at your case,; and also consider a short sale. It’s preferable to a foreclosure.
First off I want to say I am not lookign to forclose or short sell this home. I own the mortgage and trying to do the right thing by paying it. I have been intouch with each department of that Bank. Along with the mortgage person who originally did my mortgage back in 2006. Of course she says nothing she can do untill the guidlines come out. We’ll I say that is not enough as they can start working with Freddie Mac to see why there is a restriction on my mortgage. Next step is to see if I can work with a Wells Fargo in the New England area whereas my condo is in Florida. This is just unacceptable especially where I work in the finance field and this would not be acceptable if I was working on.
I have finally found my answer as to why there is a restriction on my mortgage by Freddie Mac. Seems that condos were excluded from the original Harp program depending upon how they were coded. As of March the restriction will be lifted and will be able to refinance. I will tell you I will NOT be refinancing with WELLS FARGO. I have found a great morgtgage company who enlightened me with this information and will be getting all my paperwork in order this week for them to review so all will be in order from March. Better one on one service…nothing like Wells Fargo. You can do a Harp with another company do not need to stick with the one you now have
curious to know who you found…i too have had the run-around w/wells fargo. thanks in advance!
I would gladly give it but don’t want to post all over this blog! email me
I have condo and have had the run-around w/wells fargo for two weeks. I would appreciate if you can provide more information for me. Thanks.
I have been told that I can only do a HARP with BOA the owner of my Fannie Mae mortgage. Please give me the name of your mortgage company.
Tricia, I would also love to know who your new mortgage co. is as I also need help.
Please advise.
Thank you,
Steve Ropeta
Tricia,
I have BOA and can’t make any progress. Please let me know who you have found to work with…..Thanks!
I, too, am curious to know who you found. Wells have been giving us the run-a-round too. Didn’t qualify for Harp after getting all of the paperwork together. They say we qualify for Harp 2 but have to wait until the 2nd week in Feb. I have been reading on here that it will not come out until March.
what is the name of your new mortgage company.
Please tell me………Thanks
gladly would share the name email me
Very interested, could you also tell me the name of your new mortgage company? Thank you.
Can you tell me who this bank is??
What is the name of the company?
I’d LOVE to know too!
Would love to know the name of your mortgage company that handled your refinance. Wells Fargo has been horrible.
Thanks so much!
Todd
would also like the name of the mortgage company
thanks.
what company?
Tricia, You said it. The big boys have NO idea.
Tricia
could you let me know which company you did this with? Did you get a good. Rate. Thanks
I’m applying for HARP assistance to refi my house. My wife and I separated and they told me I won’t qualify cause I’m removing my wife on the loan which she already agreed. I have to have my wife on the loan in order to qualify. I love to save the house even with no equity right now but I guess I just have to abandon it. Any advise..
Romy they tried that with me too. But as long as you can prove you have made the mortgage by yourself for the past 12 months they can do it. You have to provide the divorce decree giving you the house and the deed granting her off of title
HARP and HARP 2.0 have different guidelines. The major difference is 2.0 removes the 125% LTV cap..thus, you can be seriously upside down and still qualify. HARP 2.0 won’t go into effect until at least March of 2012. To participate, the first step to take is to determine if your mortgage is owned by Fannie Mae or Freddie Mac. If it’s not, you cannot particiapte..period. google is my loan owend by fannie / freddie and you’ll see the two websites that were set up to help you answer this question. I’m a loan officer for a national bank and I will be happy to answer your questions about HARP.
Folks, these is a link in the tool bar above to the Fannie and Freddie websites. Use it to determine if your loan is owend by either of these two ‘GSEs’. They must own your loan if you wish to use HARP or HARP 2.0.
I called BofA and asked about the HARP program, as it appears I meet all of the qualifications. They said that I didn’t qualify, but couldn’t tell me why. I did a HAMP (completed Feb 1, 2011, which lowered my $2,600 payment by 70.00). According to the guidelines, I believe I qualify, but BofA can’t tell me why I don’t qualify, only that their computer states that I don’t. Would having done a HAMP disqualify me from the HARP?
Bob, thx for the info you’re providing. I’ve been researching and so far seem to qualify. I did want to ask you a question about closing costs…can you provide any insight on this? Some lenders I’ve seen have really high closing costs. Any idea what we can expect to be charged for or what are reasonable costs? Any insight you can provide is appreciated!
Why is FHA not included in HARP?
My loan is owned by Fannie Mae and serviced by Wells Fargo. I went through the HAMP program back in 2010 and have on time and current payments since my completion of the trail period in Feb 2011. Under the previous guidelines, WF said I do not qualify for HARP 1.0 but based on my interpretation of the regulations, I may qualify for HARP 2.0 since Fannie Mae has also owned my loan. Can someone confirm this?
Bob: Just wondering on HARP 2.0 due out in march, can you roll your home equity loan into your mortgage? I have heard that you can’t. My home eq is at 6.5% which is killing me. Thanks for any info
Toni, you cannot pay off a 2nd with HARP or HARP2.0. BillB, you probably wont want to use HARP is you recently modified. Cathy, HARP and HARP2.0 are for fannie and freddie only. FHA already has a ‘steamline refi’ program that does not require an appraisal, income or asset verif, and a mortgage only credit rating. Carol M., the fees should be normal fees for a refi, and they can be ‘rolled in’ to your new loan amount so that you won’t need to pay them out of pocket.
No you can’t I’m going threw the harp 2.0 as we speak. Went from 5.78% to 4.5%
My mortgage loan was with Bank of America and sold to M&T Bank is it owend by fannie / or freddie ?
Dear Bob,
I have a bankruptcy that was discharged in 2004. I also have PMI with my current mortgage. Under these circumstances, would I qualify for a HARP 2 refinance?
You should be eligible for HARP 2. Depends on who your lender is. Banks will implement the program but will all mostly have some sort of “overlays”, which are their own guidelines on top of the HARP 2 guidelines that may put some resrictions on eligibility. Who is your current lender?
I have been getting the run around from Wells Fargo every time I contact them about the Harp it is always some non-sense with them such as we haven’t came out with the new guidlines yet, call back in Dec. call back in January than was told to call back in february around the 6th. I do not trust Wells Fargo and wang to find another bank to handle my loan. I have always been on time with my mortagarge payments. Except when Wells Fargo told me back in July that in order to be accepted for the Hamp I must be late on my payments in order to get it.
Hello Bob,
I have a Freddie Mac loan that I closed on July 1, 2009. I have been told that the cut off date for qualification is May-2009, however was told that the new guidelines coming out in March may extend this date so that I qualify. I was told that I qualifiy in every other aspect. Do you know if the loan dates are going to be extended?
Bob, I was told by Chase that my husband and I did not qualify (currently) due to our loan closing l month prior to cut off. I would be very, very interested to know if you have information on whether the loan dates are going to be extended at this time. My Chase person did not have any information in talking with her around the first of February, 2012.
Thanks!
Bob, are you a mortgage rep? If so what town/state are you located. You seem very informed and I would like to work with you if possible.
Looking to refi under HARP. We Qualify but BOA is just not responding to us at all. Tried two mortgage reps and they just refuse to call back after the apps been placed, been three weeks. Email me if your bank can help.
Talked to BOA today about HARP as i am undrwater at least $20,000. They told me i do not qualify as I have Leneder PMI? Is there any way around this? i do not remember anything about this or being told of such a thing? on the Freddie Mac sit it shows my residence qualifies. Any help would be appreciated.
I had BOA and they told me the same thing. They sold my loan before 2.0 came out. My new company is worse I can’t even reach a loan officer to find out if I qualify because I have lnder paid pmi.
We have our loan through BOA(owned be Frannie Mae) as well and ran in to the same problem while trying to refinance with First Option Lending. After shelling out 4 bills for a required appraisal and countless hours on the phone with BOA(they[BOA] had a very difficult time figuring out we had lender paid PMI) and verifying this to First Option. Anyway, First Option basically threw their hands up and told us they could not do it. BOA has a backlog of people interested in the HARP program so the waiting list to get a callback is 60-90 days.
Has anyone figured out a way around this?
I am sorry to hear of all these issues. I found refinancing under HARP to be the most painless process and from start to settlment, it took under 30 days. We brought in 2007 for 182, financined 158 @ 7% and owed 149 at the time of the HARP. Under HARP, our rate is 4% and we refi’ed 152. We DID NOT have to pay for an appraisal. We DID have to pay WELLS FARGO a 400fee upfront, however that is returned at settlement – that fee was to insure we went through with the deal and Wells wasn’t wasting it’s time and manpower. Had we canceleld just because we changed our minds, we would have lost the 400 fee.
I am getting ready to apply for the HARP loan with Wells Fargo. Glad to hear that someone had a good experience. Did you have to pay the closing costs as well as the $400?
Under the HARP 2.0 program, is there a limit on the number of properties a person can have financed and be able to use the HARP refinance program for the refinancing of some and/or all of those properties?
I have a citi mortgage and a chase 2nd. I would like to refinance them together but combined they are over 80% current home value. Should I try Harp on 1st loan or try and pay down to 80% and roll into 1. Should this be taken up with a mortgage co instead of 1 of the big banks.
I have my Mtg. thru Nationstar. I was told in Aug 2011 that I had to be behind a min of 3 months before they could help me with any programs. I quit making pymts in Sept.2011. I filled out paper work for a modification program and was accepted but it only dropped my total pymt 130.00 which I still can’t afford. If I dont pay this new agreed amount by Jan 31 2012, the offer is off the table and I cant resubmit my request for help. My question is this: If I accept their terms and start making these new pymts….and they put all my arrearages at the back of my loan…can I still qualify for the Harp program next year after I have been current on my pymts for 12 months ??
I’m looking to refinance my home and the new HARP program says that the maximum loan to value has been removed but when I called Citi Mortgage they said that my Freddie Mac still has this requirement. Is that true? I thougth the reason to have this change in the program would be to help everyone that lost all their value in their home. Can you please confirm that Freddie Mac guidelines are correct? I hope not because I really want to refinance my home. Thanks
erika, if fannie or freddie owns your loan, HARP or HARP 2.0 should be available to you. HARP 2.0 may be available this coming March. When it becomes available, you may use any bank to refi, and it wont’ matter how far ‘upside down’ you are with your equity. Currently, HARP will only allow you to be 25% upside down.
Thank you!!
My credit has suffered a bit due to the economy and my home is underwater buy almost 100,000 (although current), would this hamper my ability to refinance my loan to a lower interest rate?
No, credit is not an issue. Althought they look at your scores to make sure there are not judgements or liens, your score does not impact whether or not you will be approved.
I qualify for a refi under the program. However Chase says I do not qualify because I have a ‘bifurcated’ mortgage. I’ve never heard of that. Can Chase stop me from going to another bank in March to refi? Can a ‘bifurcated’ mortgage prevent me from refinancing under the new program?
I got the same excuse I was “bifurcated” I checked with chase through another number and they did not have any record of the flaw, then I checked with freddie mac and there was only that they owned my loan. I will try another bank. Chase is too big to care. I will also contact freddie mac and see how much of my loan they do own. I see it as a scam to keep me at 6.5%
I too am in the same boat. I just found out today after failing multiple times to find out why I am ineligible for HARP and now HARP 2. My note is supposedly Bifurcated. MERS’ website and Freddie Mac’s websites show Freddie Mac as the owner. This is ridiculous.
Chase gave me the same “bifurcation” obstruction. My loan is 30 fix, no second motgage, and perfect payment history. I fit into the HARP parameters without flaw, other that this. Any luck finding a fix to un-bifurcate.
Am i eligible to refinance a1st and 2nd that are seviced by FNMA or FMLC with a HARP loan?
No only the 1st they wont combine an EQ or 2nd mtg.
I have been trying since November of 2011 to refi w/Nationstar Mortgage for the 4.2 program. I meet all criteria’s however, they are telling me to call back in March 2012 as that is when the guidelines will be in place. Can you please clarify this as I received a letter from them in November that I was eligible yet they keep putting me off.
I have a mortgage with Northstar… however I DO NOT want to refinance with them. Can I refinance with any bank of my choosing undering the HARP progarm?
You sure can. Any Lender who is approved to do HARP Refinances can help you.
I would suggest a Mortgage Bank instead of a “Big Bank” (i.e. bank of America) due to better interest rates / lower or no fees, etc.
Mortgage Banks do not have the overhead that these “Big Banks” due and also work much quicker.
Kevin any suggestions for a good Florida bank as I am with Wells Fargo and they have been awful…I qualify for Harp but they keep putting me off with excuses
That’s EXACTLY what happened to me. However,even more strange I went to 2 Wells Fargo banks within an hours time. The first one told me no and the second one told me yes!
Im suspicious!;(
Tricia, our crrent mortgage is with wells and we financed under HARP with them and the process was done and we settled all within 30 days.
Thanks Kelly…not the case with mine seems there is a problem with Freddie Mac or Wells Fargo on a restriction on refi with Harp2. Wells Fargo will not look further into it which really stinks as we are upside down alot and never late on our mortg. They are the servicing bank and was told by freddie mac they are to follow through with my request but they are not.
Hi. I just contacted CitiMortgage about refinancing under HARP. The loan specialist says that my LTV ratio has to be 95% for the refinance – even though everything on the Freddie Mac/Harp website says otherwise! She also said that my Freddie Mac loan wasn’t “marked” HARP so I didn’t qualify?? I meet all the criteria for HARP! Please help!
I CALLED CHASE. MY MORGAGE COMPANY, AND I WAS TOLD THAT I TOTALLY QUALIFIED FOR THE HARP PROGRAM. WHEN I WAS FORWARDED ON TO THE NEXT PERSON TO GET THE PAPERWORK ROLLING, HE TOLD ME THAT I DID NOT QUALIFY DUE TO THE FACT THAT I REFINIANCED MY LOAN TO A LOWER INTEREST RATE A YEAR AGO AND THAT WAS TO SOON TO DO THIS NOW. SO HE TOLD ME TO CALL BACK IN A YEAR. IS THIS TRUE??
YOUR LOAN HAS TO CLOSE BEFORE JUNE 2009 IN ORDER TO QUALIFY FOR HARP2
My loan now is with BOA and according to the guidelines you have on your site I qualify no problem..My question is, my loan now is a sub prime in that I financed 100%..Will I still be able to use the Harp 2 program..Also, why is it if you have the new guidlines the banks state that they won’t have them until Feb or March
Can anyone tell me what appraisal the lenders are using to determine PMI,LTV,Points,and interest rates, when there is no appraisal needed?I have been told by GMAC they use a preparatory appraisal that I have no access to!!
They are correct. The law changed about 2-3 years ago where the bankers & real estate agents can not interact w/the appraisers. When I did a home equity loan the bank when onto Zillow to see my value. I think the only reason they didn’t do an appraisal as I had so much equity in my home that an appraisal wasn’t needed. I hope this helps.
i was told by my new mortgage co green tree servicing that i would not be able to refinance my home through the harp program because my property is located in new jersey and new jersey does not participate in this program is this true
HARP is a national program. Go to another mortgage co. Also real articles on the internet for your state.
I have a BofA loan and just spoke with them about HARP. I was told that I wouldn’t qualify because I have lender paid insurance. What does that mean? Who else would be paying my home owners insurance? I was also told that the newest set of guidelines have not been finalized, is that true?
We seriously need a refinance!
Check w/another bank in your area.
Thats a bunch of bull!!! Check your mortgage statement. Typically your monthly payments include PMI or property mortgage insurance. It’s normally a requirement of your first mortgage which you were supposed to be informed of by your lender. You have the RIGHT to know whom it is. It would be listed in your original closing documents. First check your mortgage statement. It should have a break down of your monthly payment. Are you assigned an account rep?go to the BofA web site. It list all the eligibility requirements. If your have an account rep ask for the name of his/her supervisor!
Lender paid insurance is not home owners insurance – it is mnortgage insurance because you had less than 20% downpayment when you originally purchased. Lender paid is more difficult to figure out as it does not show as a separate payment as the lender paid it and you paid a higher interest rate to compensate
I had the exact experience as Beth. The thing is, the Banking Industry had their lobbyists make sure that the new HARP 2 guidelines excluded those with Lender paid mortgage insurance. If you refinanced your home when values were high (which most people did), you probably met 20 percent equity and weren’t required to pay MIP (and most people didn’t because it saved them 1-2 hundred a month). The Lenders, however, paid the mortgage insurance themselves upon closing escrow to protect their own interests. This is not usually disclosed, and if it was, who would care what the bank paid or, who would have guessed what the eventual consequences would be? Most borrowers that are in trouble will fall into this category.
HARP 2.0 will fail as well..
I have 1st & 2nd mortgage…1st w/SunTurst, 2nd w/Wells Fargo. Both are current, never late. SunTrust hold 1st loan, Wells Fargo has indiciated the it simply “proces” load for private investor.
Does H.A.R.P. allow for the consolidation of both loans in to new loan lower interest rate?
Both loans total approx. 250K according to FEDs/Zillow..house value 185K
Any direction, tips, advice, you can offer is most appreciated.
I am in same boat!Per GMAC: No, program will not combine both loans.Gov. is not aware if we default on 2nd we still lose house!!
Unfortunately HARP does not allow you to combine the 1st and 2nd since these loans are Rate and Term only. They would consider this a cashout to payoff the second. My advice is to find out which one of these loans are fannie or freddie owned, refi that one under harp BUT tell them to subordinate the second mortgage. By subordinating the second, the bank is allowing this mortgage to stay in second position while the HARP loan assumes 1st position. I have my first with Wells, 2nd with TD Bank and that’s what I had to do to take advantage of the lower rate since HARP does not allow you to combine the 1st and 2nd. After your HARP refi is closed, check the rates on your second to see if they are lower. Its much easier to refi on the second into a lower rate. You normally only pay a processing fee.
Ask your 1st mtgr co to consolidate. The 2nd mtgr is subordinate
1st mortgage lender is unlikely to consolidate as it would put them at a higher risk – and most loans have to meet guidelines that allow the loan to be sold (standard guidelines). It will be difficult to roll both loans into one unless you have quite a bit of equity in your property – catch 22
you are most likely stuck – but I would really encourage you to keep making your payments as it will take a long time to fix your credit score once your mortgage payments go bad – do what you can to get 2nd paid off so you have some equity in the property – eventually, values will rise
I have 2 mortgages through Wellls Fargo, can this program help me get rid of my 2nd mortgage?
Probably ask your mtgr co
I notice that the new requirements above do not state you must be current without any late payments/fees. Is that still a requirement? We made a decision to walk away because WF would NOT help us because we were current on our mortgage. In order to refi they wanted $100,000 to cover the difference in loan value and home value. Would we even qualify now since we are not current on payments?
Leigh, I am a loan officer at a local bank.
Your mortgage payments need to be current for six months in order to qualify for this program. Other guidelines in regards to credit also apply.
Please let me know if you need further advice.
Anna
what about if you have short sale another property within the last 2 years, will it affect the application of your refi thru HARP on your primary residence?
Anna,
Would you please get in touch with me? I do have few questions that I would like to discuss more in details with a loan officer.
Thanks.
Anna, you seem to really know and understand the HARP program. I have been reading and researching for months. I do have a Freddie Mac and it’s with Wells Fargo. I do qualify, but at the bank the loan officer said that I didn ‘t and that was about 3 -4 weeks ago. I want to reduce my interest rate and get a fixed, can you advise me?
Anna…my son has a mortgage w/GMAC, backed by Fannie Mae. After going through a divorce, his income was reduced by more than half. After applying for a modification loan (HAMP?), he was approved. This lowered his payment by $800/month, and he made all payments on time. His payments prior to this were also made on time. Four months later, he was told the modification program was rescinded because his ex-wife would not sign a “quit claim deed”. They then considered those 4 months delinquent, thus dropping his credit score substantially. With the help of family we have now gotten him current. He believes he will qualify for HARP 2 after six months of being current, which will be June or July. Is this correct? Also, I have heard it may be to his advantage to go through a private lender. Pros/Cons?? Any other suggestions? He lives in MD. Sorry to be so lengthy
You need to short sale your home at this time. The credit hit is a bit less then forclosure
That is outrageous. HUD has a program called Principle Reduction Program. The regular loan process eligibility for a loan modification apply. But the benefit of this program is that HUD will match a principle reduction up to $50,000 if the lender agrees to match. That’s a potential of reduction of $100,000.00? And for the bank to tell you that they couldn’t help you because you were current on you mortgage is PREPOSTEROUS. To protect yourself, note on a file the date and time you were told this by the WF rep. Also note his name. Ask for his supervisors name as well. My best suggestion is to keep really good notes on any conversations you have with them…recording it also saves your butt.
I bought my house in 2007 for $389k and have paid it down to $292k. With rates so low I can refi from a 30 term to 15 yearm term and keep my monthly pmt basically the same. However, the developer of my small development (14 total lots) died a couple years back and the bank foreclosed on all but the 2 lots I own and 1 other as the developers widow couldn’t pay the property taxes. They then had a “fire” sale to get rid of the lots. I picked one up for a third of one of my other lots. However, the house “next door” which is the same as mine on the same size (2 acre) lot went for $258k. Thus, I know my appraisal won’t come in high enought to do the refi. However, when my bank got wind that I was looking to refi w/ another bank (probably because they saw my credit report was pulled) they sent me a offer to refi under this HARP program. What I don’t get is that I do not have a Freddie Mac or Fannie Mae backed loan. So why would they offer? I really want to do this refi but I am wondering if they are just going to charge me the appraisal and appl fee and then say I don’t qualify as I am not backed by Freddie Mac or Fannie Mae. What gives?
Ask for you costs upfront in writing
I have a rental home that is a freddie mac loan.I want to refinance because I am at 7 1/2% on that loan. I had a lender willing to do refinance until the appraisal came back extremely low. I owe just under $94,000. The appraisal was for $106,000 even though All my research says that it is between $135,000 and $169,000.The lender balked after seeing the app. What can I do to get a refi on this loan. I am willing to pay $3000 towards the principal.
I’m not sure where to go for advice or what we can do. No one can seem to help. I’ve been divorced and remarried for a few years now and we never refinanced our house because of the market. My ex just moved out and my new wife and I assumed the loan. Now we’d like to refinance but I’m not sure it’s possible. While the house is worth more then what we owe, even in today’s market, we have a 2nd mortgage that’s crazy high. I wish we could combine the two and start fresh… any thoughts?
Refinance the 1st mortgage and do a subordination of the second. At least you can lower the rate on the first.
You should be able to refinance under the HARP program if your occupancy has not changed from when you did the existing loan.
Ok, so an appraisal is no longer needed according to the new guidelines however Bank of America is trying to get me to pay a $425 non-refundable appraisal fee. According to all of their calculators I am eligible and there should not be an issue with the 125%, which is also supposed to be going away in March. Not really sure how these banks are getting away with saying they are offering HARP loans but then not following the guidelines.
same thing here, i just called BOA earlier and thats what exactly they told me, i need to pay $425 appraisal fee
Same here as well. But before that, my mortgage company almost got me into a H.A.M.P. ( not HARP ), which is a home modification and goes against your credit score. With that in hand, if I accidentally went with the HAMP, I would have to get my home appraised at, of course, a fee. BUT, my mortgage company does offer a HARP… But not in my state. Question – if they can get an appraiser out to my home if I need modification, why can’t they do the same for another program. Contractually, is a lender supposed to go out of their way to screw people over..?
Same with us. We had to pay $400 for an appraisal fee for HARP refinancing.
I was told by BOA that the appraisal was not needed, but they needed an upfront fee of $470 to begin the process, etc. I was told by BOA that I could start the process today, but when I called the mortgage brokers…they said to call back in March because that is when everything will be finalized. Not sure which is correct.
When we register/lock a loan we are required to charge a fee of $425 for an appraisal even though HARP tool may give a value. If in processing the application it is actually determined in u/w that an appraisal was not needed the $425 will be credited back to the customer.
I PURCHASED BY HOUSE IN 2007, BACKED BY CHASE, OR SHOULD I SAY CROOKS, TRIED NUMEROUS TIMES TO MODIFY, TO NO AVAIL, DO I QUALIFY? IM IN CALIFORNIA, AND MY HOUSE IS BELOW WATER BY 50,000 HELP SOMEONE, CAN’T MANAGE THE PAYMENTS.
Suzanne, Did you check the system to see if you are backed by Freddie or Fannie? If so you can submit to see what the savings will be.
Does anyone know of a bank that’s refinancing under HARP 2.0 for new customers?
I have an FHA Fnma MTG ….i have not had an appraisel done in over 3 years but know the value of my home is 80k less than my principle does anyone know if i have to get a new appraisale to qualify for HARP
Yes you do
no you do not!under harp guidlines
I was told that an appraisal is not needed via BOA. May want to check around with different companies to see what they are doing.
I too have a Wells Fargo mortgage. When I called back in November they told me my loan was flagged as paying PMI. I told them I have my mortgage statement right in front of me and that no PMI is in my payment. I did pay a fee upfront for “prepaid PMI’ but that was it. Apparently when Wells took over my servicing, they coded my loan as being a PMI Loan. The mortgage guy told me that they would change the system and that it would be updated Jan 6th (almost 40 days after my phone call). I waited. Today I find out that the system never got updated and the guy promises the system will be updated on Feb 6 and that is better for me because that’swhen the HARP guidelines take effect. Huh? I get the feeling Wells is jerking me around.
I have been in contact with Wells Fargo too and I was just told last week that they will start taking applications Feb 6.
Greg you are getting jerked around. Private Mortage Insurance is required on all loans if you have less than 20% equity. You can pay the PMI monthly, or front-load it as “Lender Paid PMI”. You pay a higher interest rate and your lender takes the extra money and pays the PMI insurer. HARP says that if you don’t pay PMI now (monthly or lender-paid) you won’t need to get PMI on your new loan, even if you now have less than 20% equity because your home has declined in value. However, if you DO pay PMI now you MUST get PMI again on your new loan, no matter what program you refinance under. PMI insurer’s aren’t banks. They are insurance companies. They will not issue new PMI insurance unless you meet their specific qualifying rules. Anyone using HARP, HAMP or HARP 2 doesn’t meet their qualifying rules. If your Lender can’t get PMI insurance, they can’t do your loan. No one who pays Monthly PMI or Lender-paid PMI should be spending any money to try to refinance right now. Don’t let some loan officer/order taker at a big bank take your money.
I have mort with wells fargo closed 3/06. 140,000 mort value is about 65000 in florida as 2nd home..we were just told we don’t qualify under harp because it is a condo only single homes! on 7 yr variable due 2013. have been told not backed by fannie mae which at some point we were told we were. just doesnt make any sense. our mortg up north when the rate went down they just sent us a paper and we signed and the rate was changed. Of course this is a small co-op bank. maybe if more banks took this approach with good paying individuals our families wouldn’t be loosing their homes!! Any thoughts on what I was told why we don’t qualify due to condo
Tricia,
The way the guidelines read is that if the loan is held by Fannie Mae be it condo or co-op it should meet guidelines. This is because it met the right criteria the first time to be sold to Fannie mae.
sorry it is Freddie Mac backed..not that that makes a difference..I spent 2 hrs today on the phone with Wells Fargo looking for the answer why Freddie put a code “J” reason why they will not allow my mortgage to go under the Harp Program..after several conversasions about what the “J” meant I was told it meant condotel? resort community? which it is neither…so I pushed further on this and was told due to to many rentals/forclosures or low reserve in the HOA…well no wonder why that is!! If they allowed the refinancing you would not see this happening…Freddie Mac reviews every 6 months…It’s a catch 22 but as usual these programs will never work for people who DO pay their mortgage! Would love to talk to Freddie Mac but can’t get intouch with them…
Try a different lender.
I meet all the criteria however I no longer reside in the property and its rented out im active duty military and was forced to transfer and couldnt sell it. does anyone know if i can get some kind of waiver on the residnecy requirement
The guidelines state that a second home may be refinanced under HARP 2.0
When are the new guidelines going into effect, they were announced in October 2011 and my mortgage holder tells me they have not gotten the paperwork from the government. I qualify for the program but it’s taking so long.
I was oriignally told December 11th, then I was told to try back on Jan 27th, but then I have read online it could be the end of March. I am hoping it is sooner as I qualify too
I have a 30yr fixed @ 6%, funded by Fannie, serviced by Chase. Recently a Chase rep called and said he could “just barely” get me into a HARP refi if I paid an application fee and an extra point, because my LTV is 108% but the cut-off is 105% LTV. I did a little reading, and it seems the HARP program should allow up to 125% if I stick to the same product (30yr fixed), is this correct? Was this guy calling with an offer of assistance, but is actually making a profit based on false info (adding points for higher LTV% when it’s not necessary)? Should I reasonably expect to pay an application fee, appraisal fee, and a certain percentage over prime, or is the HARP rate regulated in some way, like prime + ‘X’%?
Chris, the Amendment to HARP announced on Oct 24 states that “The maximum Loan to Value (LTV) cap has been removed on home owners looking to refinance in to a fixed rate mortgage.
Chris, I have a Chase loan as well. Do you know if all Chase loans are services by Fannie?
Chris u need to go to the fannie or freddie website to determine if either one owns it .
My house is at 87% LTV which includes a second of $73000. All my payments are on time and I am not paying PMI. I took out the second to avoid PMI. QUicken loans says that my loan shows up with PMI and that I could only refi my first under Harp not the secon. They asked to see my HUD when I told them I am not paying PMI. I called Citi would services my first and it is Fannie Mae and they told me my loan does not have a special code so I do not qualify for Harp. No one their can explain to me why. Very frustrating. I meet all criteria. Can anyone help?
Only some loans that are backed by Fannie/Freddie actually qualify for the program. The only way I have heard of to know for sure is to have a mortgage person take a full credit application and run you through Fannie’s automated system and then it will tell you in the summary weather you loan qualifies or not
I HAVE PMI INSURANCE ON MY MORTGAGE THROUGH BANK OF AMERICA
I HAVE A FREDDIE MAC LOAN, WAS TOLD TO CHECK BACK IN FEB.2012
WILL I QUALIFY IN THE COMING MONTHS OF 2012 TO REFINANCE AS I;M UNDERWATER ?
Heidi,
Bank of America is the mortgage insurance company?
The new program allows for PMI.
http://harp-mortgage.com/mortgage-insurance/
I have LPMI which is through Bank of America, which I was not aware of.
I was told I could not be helped, to call back in Feb. of 2012 My question is will I be able to apply to any other lender, provided the new guidelines comes available for those with LPMI to qualify ?
Heidi,
From the new guidelines I read, it sounds like loans with LPMI are not eligible for the program.
Heidi, I was told the same thing by BOA. They said because i had mortgage insurance they said to check back in Feb to see if they removed the 105% ltv. I did a little research and it looks like we may be able to go to another participating lender to do the HARP refinance. Check Freddiemac.com.
My loan was funded by Fannie Mae, I closed on October 2008 at 5.875% I bought my house for 269,000 and my balance is about 232,000 + i pay pmi, my house is worth about 246,000 and i have a credit score of 700+ can i refianance?
246,000 according to zillow.
Hi Rafael,
You should be able to refinance but the fact that you have MI may be a problem but won’t know for sure until the guidelines are released. If you are in California and would like to send me an email I can check back with you when the rules are released.
yes I am from southern California
Paschal I have the same problem can let me know also,about the new HARP PROGRAM
My 7 yr arm doesn’t go variable until July 2013. It is fixed until then. Would my loan be considered fixed with no LTV cap or variable with 105% under HARP II?
Hi Mike,
The guidelines refer to the new loan that you would be taking out. The 105% cap would only apply if you were looking to refinance into a new ARM. If you would like mor details and are in California feel free to email me; I am a direct mortgage lender.
Regards
To: Paschal C
Can you email me I would like details and I’m in southern CA
thanks!
Paschal,
Would you please email me more information regarding the HARP? Perhaps we can sign up with your company.
We qualify for the new HARP, except our loan closed in 12/2010. Is that an acceptable date?
No, June 1st 2009 was the cutoff date.
I am currently in a 6.25 interest only loan with a 230,000 loan with the house worth 160,000 … I am current on payments and wondering if I can use the new HARP 2.0 ?
When the LTV cap is removed by Fannie and Freddie in the new year you should be eligible.
I have mortgage loan through Citimortgage. I called to apply for HARP refi under new guidelines that eliminate 125% LTV requirement. The old HARP was of no use to me because my homes LTV exceeds 125% LTV. However, I was told that my “Freddie Mac code” qualified me only for the 125% LTV loan program, not the new one. Again, I meet all the publicly stated requirements for the new HARP loan, but am being told that I can only apply for the 125% LTV loan. Anyone heard of this or received the same information?
I am assuming the code is being generated by LP (Loan Prospector) Freddie Macs underwriting software. Freddie mac has not yet implemented the above 125% LTV program.
http://harp-mortgage.com/harp-program-faq/
I was just told by CitiMortgage the exact same thing – that I only qualify for 125%. When I explained the cap had been lifted, I was told that “only a few” mortages qualify for loans above 125%. When I asked what the criteria was, I was told it was just a decision made by CitiMortage and Freddie Mac. I was also told I couldn’t go to other lenders – only my existing mortage holder can take advantage of HARP. Is this true?
Hi Joyce,
They don’t know if you will qualify or not yet for HARP 2.00 because the underwriting software has not been updated to reflect the new changes. The changes won’t go into effect until March of 2012. If you are in California feel free to email me for more info as I am a direct mortgage lender.
Regards
Can you please email me your information? I would like to speak with you about my Chase mortgage loan.
Thanks
r.castro_77@yahoo.com
I have a property which I own that has a 5/1 adjustable rate mortgage at 6% and is ending in the next month. This property was previously rented through section 8 and was declared on my tax returns as such. I’ve recently contacted my lender (chase/freddie owned) and they are qualifying my loan under the HARP program to modify to a 30 yr fixed mortgage.
My question is when they ask for my tax returns and see that I declared this property as an investment in the past, will that make me ineligible to qualify for the HARP refi? and are you allowed to refi a rental property if they declare this as a rental since it was rented in the past? Will they ask for any type of support showing it’s not longer rented? thanks.
Ditto – sounds good
Hello,
Does anyone know if a HARP loan can be denied based on your status within the USA? I am Canadian and have lived in the USA since 2000. I have owned my home for 5 years and have a credit score of around 780. Well Fargo denied me my refinance based on me not having a visa. I work on a TN-1 which is based on NAFTA. Any thoughts or experience with this? Please post a link to a good site for future reference. Thank you
Mark,
They should know that a TN-1 IS a visa. Go to “travel.state.gov” and there is a ton of info on all State Department programs, including visa classification.
I have heard both yes and no on the question of whether HARP can apply for second homes. If someone can point me toward any written guidelines that say it is, I would be extremely grateful.
I just refied under HARP for my investment property. It can be done, not sure where you can get it in print however.
Tim–did you use your existing lender?
My original loan started out with Midland Mortg which was apart of Fannie May..It was sold to MGC Mortg which Say THERE NOT A LENDING COMPANY…Is there any help out there for me?? I tried to re-fi and got a low apprasial.
I am currently with Bank Of America (Originally Countrywide) & when I asked the BOA local broker about HARP for me he said I didn’t qualify because my original investor is Bank Of New York. I never dealt with Bank of New York. Can I still get the HARP program? Thank you.
I refinanced in 2008; my bank did not sell my loan to freddie/Fannie. Can I refinance under the new harp program?
My loan was just sold from BofA to Green Tree. I thought I was perfect for Harp 2. I owe about 215,000 on house worth 135,000. I am also up to date on all my payments. I am also backed by Fannie and have a PMI. I was just told by green tree I would have to have paid off at least 80,000 of the original loan of 235,000 before I qualify which she said is 20% but that does not work out to 20% either? but is the 20% correct anyway?
Brett, they are wrong, and whoever you spoke to knows nothing about the new HARP program. If the loan is still owned by Fannie you are eligible for HARP 2. But the lenders have yet to make their guidelines public, though Fannie and Freddie have. If you are in California, email me.
I am in California
Tony, I have the same situation as Brett; would it be possible for me to receive some information from you also? Thank you.
Need to know what lenders are doing harp loans. I have been late with 2nd mortgage. My 1st has been modified but they will not even try to do harp to combine both because of late payments to 2nd. Any suggestions? I am in IN.
Thanks.
I have encountered the same thing …….my loan was sold to Seterus which is a loan servicer they dont do refinance….I must find my own lender..I have called several no one wants to help have enough income but my credit score is in the toilet
Harp 2 great program but no one wants the public to be successful in thier finances….sounds like the lenders want the money for themselves instead of helping the America Public….We are slave to the lenders
I was waiting to refinance my mortgage with BofA through the new HARP program as they told me I would be eligible. I called at the beginning of November. Two weeks later I received a letter from another bank, M&T Bank stating that BofA had sold my loan to them. Now, I have learned that my new bank doesn’t participate in the new HARP and that BofA and all the other banks that participate are only offering this option to existing customers. Is this something that is happening to a lot of people and does anyone have any suggestions?
I just spoke with Green Tree (I also have a loan sold from BofA) and was told I didn’t qualify for HARP 2 because the LTV was more than 99%. I told them about the new guildelines and they said that I sill didn’t qualify for the same reason. So frustrating.
Also advised that if you have “PMI” on current loan you are not elgible…which pretty much includes everyone in a 125% loan to value situation. Appears the insurance companies aren’t on board with foregoing their part of the money stream…tons of ostacles. Wonder if the President who got a bunch of play signing the 125% inclusion is actually aware of the challenges! Hard to find his e-mail address.
I agree….I wonder if President knows how much pushback we are receiving from lenders
I thought I qualified for the HARP program since I signed a Fannie Mae Note and Mortgage in 2005 (no PMI, etc.). Come to find out, Fannie Mae sold it. Now, I have no options to refinance (or sell) due to the LTV on my home. There are millions of others like myself who would benefit from the HARP program if the government extended it to those of us who are in my position or if the government provided another program for non-conforming loans.
Is there a chance that when the HARP 2.0 guidelines roll out in March 2012, the May 2009 deadline for the load origination date will be relaxed. I started my current loan application April 2009 but it didn’t actually close until Aug 2009.
I have the same problem. It’s really frustrating that they insert these restrictive rules and hoops you have to jump through so that you can’t refinance and then say in the paper that they have no idea why so few people take advantage of the HARP loans. They are just playing games with us, which is worse than if they did nothing at all.
The new HARP is of course not for anyone! why would I expect any different from banks or the government!! Our loan was taken out in 2008! it is Fannie Mae! We are never late with payments! Have excellent credit score! Think we would more than qualify to lower our payments!, but oh wait not so simple, screw you Joe, because you were not able to put 20% down at the time and had to get PMI at the time of your mortgage you do not quality, sorry, good luck keeping up with your payments!! so now what?? foreclose???
not for everyone that is, like myself! total bs!!!
This is EXACTLY our situation. I think my blood pressure went up significantly when we spoke with BofA just now (BTW — had to speak to a min of 5 diff reps before found someone who “sort of” knew about HARP). I looked at our closing docs from 6/2008 and there is absolutely NO MENTION at all of who is paying PMI or the fact that we have it at all. It sounds like this loophole is b/c the PMI ins cos. aren’t willing to give up whatever BofA is paying them – I guess. Best I can tell BA is paying $25 – I assume a month although it is NOT very clear to me at all. BofA told us to check back in a couple of months b/c apparently there are new guidelines. Did you hear that?
No, you were right the first time. HARP is a political ploy that sounds good but doesn’t actually do the public any good.
Same Here I went through Quicken Loans if you have a PMI we can help you if you bring in $18,000.00 Then they ripped me off withe a on goddly appraisl fee. and if everything may of worked the refi fee would have been about $4,500.00 These banks have just turned into Loan Sharks I also have a great credit rating and never missed a payment. Good for you bob but we just can’t help you at this time cost me $400.00 for a apprasial fee to find this out when I had already told them the value of my house already.
I left a message (3X) on this site as to why Freddie Mac blocked my loan at the computerized underwriter level. I have met all the requirements for a HARP re-fi and yet Freddie Mac blocks it. No PMI, no outstanding debt, qualifying income and my LTV is 125%. Freddie Mac owns the loan yets blocks the final step. WHY???????
Gail,
This is a question to talk with your loan officer about. Freddie Mac digital underwriting software provides codes that should give you specific answers according to the code that is being generated. Ask your lender what code is being generated when it denies you. That should help narrow down your answer.
Divorced;investment property with ex’s name on mortgage; value to loan ratio not good;does ANYONE know of a program to help people in this situation? Can’t bring $25000 to table to refi.
Ken, depends on a few things. Who owns the mortgage, payment history, credit score. The fact that it is an investment property does not elimiate the eligibility for a refi. The HARP program may have options for you. Look to see if loan is owned by Fannie or Freddie (this can be done online through each of their loan-look-up search engines). if the property is located in VA, DC, or MD feel free to email me. Otherwise contact your current mortgage company or a local lender for further information. Best of luck!
Kevin, I have a rented out property in DC that is a bit underwater. It currently has an adjustable rate mortgage, and I’s like to get it to a fixed rate loan. What are my options?
My bank is willing to do a Fannie Mae-HARP2-20 year refi! HOORAY!
Can anyone tell me what fees the bank is allowed to charge me for this process? Is there any limit, or are they allowed to just pile on any fees that they choose?
we have a 30yrs fixed mortgage and are current on our payments. we are offered the 3 step harp program through wells fargo. is that the right way to go.
We are coming out of Chapter 13 bankruptcy. Our mortgage is with Ocwen. In September of this year I was deemed disabled by my doctor after third back surgery. I worked for our county schools for 20 years. I have also applied for SS.My disability check is 50% of my normal salary. I also get a check from a personal disability insurance. We need help with getting a cheaper interest rate,ours is 8.5.We owe 9 more years. Can someone please point us in the right direction? We would greatly appreciate it.
Chapter 13 must be discharged prior to application for a refi. as for the income, you would need to prove at least a 3 year continuance of whatever income you are using to qualify. There may be options for you as well. if property is located in VA, DC, or MD feel free to email me directly. Otherwise speak with a local lender for further information.
i cant find no one localy in kc to help the # i call no one ever answers?
I have a 1st owned by Freddie and I also have a 2nd D/T not owned by Freddie . Underwater of course. What are my options to get the 2 loans together to lower the total monthly payment. Can I refinance both under the HARP Program? Please advise
Hello Lost,
I work for one of the BIG banks and we hear this everyday. The HARP 2 is still in the works and we are awaiting guidlines so that we can advice. Under current guidelines the 2nd has to be subordinated.
We have an 80/20 loan with both owned by Fannie, must husband called GMAC today about refinancing and they said we can only refi the primary loan but that we were lucky that Fannie owned both since they typically sell the smaller loan and that would have made un ineligible for the HARP Program if they didn’t own both.
I requester a hrp loan, because I have 2d loan with Bank of America, they said they only can refinance the fist. Thanks for the information. By any chance can you tell me where I can find this information. Also they want to charge 2400.for closing cost and points. Is this right
My husband and I have a condo we rent out because we would lose too much to sell. Can we refinance this rental under the new changes? We do own another house in which we live. We haven’t lived in the condo since 2008.
Thanks!
I’m in the same boat as Kristi and need to refinance an investment property….rent $300 under what it costs each month. I cannot last much longer and I currently cannot find a renter. Please help.
With HARP you can do second and investment homes.
Condos are a little harder to do
We’re in the same boat as Kristi and Anne. Can you tell us why condos are a little harder to do? We fit all the requirements for the current HARP with the exception that our condo is not owner-occupied. I tried calling Wells Fargo just now and was told that the condo had to be owner-occupied to be eligible for the new HARP program. Is there any way to point to something in writing in regard to owner-occupancy and the new HARP?
Can anyone please tell me what Bank are willing to write HARP 2.0. I have talked with Bank America & they are still telling me that the LTV is 105% & the need an appraisal. They said the HARP 2.0 loan program does not apply to Washington / Seattle area.
BOA will do whatever it takes to keep you from refinancing with HARP. Try a different lender. I did hear that you might not be able to take advantage of the new LTV rules until spring. I don’t know why that is, but it certainly isn’t because the program doesn’t apply to the state of Washington!
I meet all the listed requirements, but was told my mortgage doesn’t qualify because it was a no closing cost mortgage for Bank of America. Any validity to that?
Your probably trying to go back through BofA. Try a different lender. Go to fannie mae and/or freddie mac.com to see if your loan was backed by them first. Loan must be fannie or freddie.
What is happening is that you probably got that loan because they advertised it as having “No fees, no PMI,” and you put less than 20% down. Now BOA claims that it put PMI on those loans without disclosing or notifying you of that in any way. I have another property with the same problem. I had no idea I had something called “Lender Paid Mortgage Insurance” (LPMI) until I tried to get a HARP loan, which I qualify for in all respects. But BOA will not give it to me because they say they raised the interest rate to pay for the LPMI (which means, of course, that I am paying for it) and they refuse to say who they are paying the LPMI to. They won’t give anyone with LPMI the chance to refinance using HARP. Why, because they just won’t. Now they have codified it in the latest HARP rules. The government will do nothing about this. I sent letters to my senators and to the Freddie Mac compliance office. No one will do anything. Our government works for the banks, not us. I did ask one of the many people I spoke to at BOA if it was okay if I changed the contract that we had signed in 2007, without telling them. The irony was lost on them, I fear.
Linda,
Sorry to hear about your situation with BofA. I do believe that the new guidelines allow LPMI take a look. http://harp-mortgage.com/mortgage-insurance/ “What if my loan has lender-paid MI?”
Sam
We’re trying to refinance our underwater mortgage with HARP. We fit the requirements, but our original lender Taylor, Bean, and Whitaker – as you know – is six feet under. Our mortgage is currently held by Freddie Mac and serviced by Cenlar. We can only refinance with another lender, according to MGIC guidelines, with an LTV of 105%. According to MGIC, we have Lender Paid PMI (but we have documentation from TBW underwriting from loan closing that indicates that we have “No MI option.”) First, can you please explain what “no MI option” means? Second, would the changes and new ammendments to HARP help us refinance (we are still too far from 105% LTV to afford paying the difference)? Thank you!
Luimila, I am in the exact same boat with Cenlar!
Typically “No MI Option” means you do not have mortgage insurance on the loan. If you purchased the house using a VA loan or USDA loan no MI would be required, Also if you financed only 80% of the homes value with the primary mortgage MI would not be required.
Yes the new HARP mortgage program sounds like it would help you.
Chargers Fan is correct on most of it. When you said no MI option it can also mean the following.
When financing yourloan you would have been required to pay MI, But there are some lenders who have a no MI/PMI option where you are charged a slightly higher rate or fee to not have it.
Ditto for me as I have Cenlar as a mortgage administrator as well. I was told the mortgage firm or bank they use does not do financing or refi in my state so I have to go out on the market. I’m the perfect no risk, but underwater, home owner with about as good as it gets credit score. I can’t find any bank willing to refi me because they aren’t accepting outside their own current client base. However, some can’t because they haven’t set up a system to accept new clients under this program so there is hope for the future; perhaps things will change for better in a few months.
Similiar situation, Wells Fargo services my loan but was not the originator of the loan (used a broker) and have Lender Paid PMI (thought no PMI)so my mortgage is not eligible for HARP??
Lender Paid MI is the same as No MI Option. You didn’t pay for PMI because the lender paid for it with the premium pricing that they were getting paid back by the investor.
If you have LPMI, you do not qualify for HARP
Pete,
I believe you may have LPMI but it will have to be manually underwritten.
http://harp-mortgage.com/mortgage-insurance/
I am in a similar position. I qualify for the 125% LTV through the HARP loan program. My credit scores are above 800, no outstanding debt at all, no PMI and income qualifies. I am at the 125% LTV and all the lenders I speak to say it is a slam dunk! However, the loan gets blocked at the computerized underwriting level at Freddie mac. I have written to Freddie Mac for an explaination without results. It appears this program is a joke. All advertising and Freddie Mac website denotes particular lenders who can do the loan at the 125% LTV but Freddie Mac blocked it. Anyone else have this problem? If so do you know how to rectify the problem? Any help is appreciated. Thank you
My wife and I were married 2 years ago. We wanted to refi and add me to the deed & mortgage of my wife’s house using the equity from my home sale to drop our interest rate and payments. WF said we are qualified for a HARP refi but that the program does not allow you to add a person to the loan. This doesn’t sound right to me. Does anyone know if this is true?
HARP will allow you to add your spouse onto the loan IF it is a Fannie Mae loan. If you have a Freddie Mac loan, you are out of luck.
I wanted to re-finance to a lower interest rate. I was told that I qualified for the HARP program and to apply with my lender who is Bank of America. Bank of America took my application over the phone. About month later they sent a letter informing me that they transferred my account to Greetree Servicing,a debt collector, with barely 2 weeks notice. I have never been late or delinquent on any payments, my fico is 742. Why did they do this? Neither company has given me answers. Stating they don’t have all my information due to the transfer process. I’m also not being credited with a mortgage payment that was made for the following month after this transfer was to occur. My account was one mortgage payment ahead. Green Tree does not seem to want to recognize that payment. What are my options against both these companies? How do I file a complaint?
Renita,my story is identical to yours,7.5 years never missed a payment, just transferred to Greentree a month ago, 750 credit score, qualified for HARP. Just hung up the phone a minute ago after being told by Bank of America that I have no refinance options.
Same story here. It sounds like anyone who qualified was sold to Green Tree. Can they do this? Does anyone know if Green Tree will participate in HARP once the transferring is complete?
If Treen Tree doesn’t – You can use another lender.
File a complaint with FTC.gov, and the Consumer Finance Protection Bureau, OTS.gov and OCC. gov.
Filed a complaint with FTC. I was told by Green Tree they did not participate in HARP in Virginia. They referred me to Wells Fargo, who told me my best bet was to check with BoA since my second loan is through them. When I phoned BoA they told me I was not eligable since my primary loan was not through them. The shocker is BoA sold my primary loan to Green Tree. I feel as though they purposely sold my loan to Green Tree to keep us from utilizing HARP
Thomas and Renita — I’m under the same situation. Was a BoA customer, loan just got transferred to GreenTree. Spoke to my realtor, he said as long as it is just servicing, there shouldn’t be a problem. I too initially thought that this was a way of preventing people who qualified to refinance. Still waiting for my full loan info to finish transferring to GreenTree, was told by GreenTree that there will be no late payment fees since the mortgage was not paid on Dec. 1st. As far as the HARP goes, think I have to wait until March to actually apply, so won’t know if I’m going to face any opposition until then. I’m going to look at other lenders and see what they’re options are. Good luck!!!
Tom Im in your exact situation verbatum. If this was wall street it would be called insider trading and illegal.
Exactly how housing got in this mess in the first place..lot’s of greed, “fine print” and subtrofuge. They’re at it again and sadly the problem is so big that even the government dosen’t appear able to get ahead of it. For every solution the banking and insurance industries build an obstacle..it’s a sad state of affairs. They’re jumping over themselves to get at the “easy” loans to make it appear as though they’re on board with the program. My 4%, no second, paying down the balance loan was bought twice in one week! My 125%, great credit, up to date son can’t even get anyone to consider his application.
I was sold to greentree also, never a late payment, perfect credit. Why?
I believe our loans were sold because BofA and other big banks are about to go under.
Can I refi with a HARP loan? I have a conventional,adjustable loan and would like to go to a fixed rate loan. My mtg doesnt offer the HARP loans and my home is now upside down 20k with 8.25% can you help me if so how do I apply and with who?
Have you checked to see who owns your loan?
http://harp-mortgage.com/who-owns-my-loan/
Everybody: I don’t have my loan with Freddie Mac or Fannie May, my loan is with CHASE which fits; since I’ve spent the last 4 yrs chasing CHASE! Once I got educated on what an ARM is; “One year” later I called CHASE to change my loan from an ARM into a Fixed. Imagine how shocked I was when I was told sorry we can’t do that, you owe more on the house then the house is worth! CHASE has me right where they want me, they will not allow me to refinance either. For the last 5 yrs not one cent has been applied towards the house it’s all been interest. My job was just eliminated, once I can’t pay the mortgage CHASE can start chasing me. After reading all the replies and the different circumstance’s every one of us are going thru we are running around in circles. Until the goverment makes some hugh changes! We are forced to ride the storm out.
Bambi,
Chase may only be your servicer. Use the links on this site to see if Fannie or Freddie actually own the loan. For example, my Chase loan is actually owned by Fannie.
We have a first and equity loan on our primary residence through Beneficial. Is the new program going to allow refinance of loans like this that are not held by Freddie/Fannie?
Unfortunately you will not be able to participate in HARP unless you are in a Fannie or Freddie mortgage
Our home (owner occupied) was purchased in 2004 for $400,000 at 6.5% fixed, interest only payment for the first 10 years and then amoritizes like a 20 year mortgage at 6.5%. Our current loan servicing agent is Ocwen Mortgage. The value is at about $240,000. We pay faithfully each month and have not been late. Not sure if it is Fannie or Freddie backed. Does anyone know if this program would assist my situation? Thanks!!
Ask your Ocwen Mortgage(Servicer)or go to makinghomeaffordable.gov to check and see if your investor is Fannie or Freddie. That is one of the requirement for HARP 2 Refi. If qualified, HARP 2 refi won’t look at your LTV regardless how much u’re underwater. You can lower your rate which mean lower your monthly payment; however, since LTV is above 80% you’re required to pay monthly PPTYTX & Insurance along with Prin & Int. Good news you might be able to lower rate but total monthly housing expense might be more if currently you don’t have impound. Still currently you’re paying $2600 interest only. If you got FICO score above 720 and employment, I say shoot for rate below 4.5% 30yrs fixed. At 4.5% your Prin and Interest would be $2,026 and if you include PPTYTX & INS your monthly housing expense would be less than $2600. Huge Saving!!! You can do HARP 2 Refi Program with participating lenders and not just your current lender. Suggest you shop around.
Hi John: Thanks for your reply. I called Ocwen and my loan is a conventional loan. My total housing expense is at $2800 (int. only payment 0f $2166 and putting aside $600 for taxes/insurance). Ocwen transfered me to a loan agent and they couldn’t help because I don’t have an FHA or Fannie/Freddie backed loan. Back to square one!!
I dont understand how PMI comes into play with the HARP program and was wondering if someone could help clarify. My mortgage broker is telling me I cannot refi with HARP because I pay PMI. Is this true? If so, is there a new progam coming out that allows PMI via the HARP refi? Any expectation as to when this information will be released? Thanks!
I am 6 yrs into a 30 year fixed loan with Chase.
what do i have to do or can i get a harp re-fi.
Be careful with Chase for a HARP refinance. Chase has two places you can go for a refinance: its national call center which is the phone number on your mortgage bill and its retail division which are the friendly people at your local Chase bank. Though the company is the same, the two divisions have completely different rules for what it takes to qualify for a HARP loan. The retail people are aligned with the HARP guidelines, the call center is not. The retail people are flexible. The call center people are not. Example: The call center people sent me an email asking for documents that were not required under the Fanny Mae guidelines, promising that they would not show the documents to the underwriter. As soon as I emailed the documents, they gave the documents to the underwriter. Those coerced documents blocked me out of ever gettting a HARP loan. On top of that, the phone center people stuck me with a $395 charge on my charge card. The Chase retail people told me that if I had gone to them first, I would have gotten the HARP loan. The retail people tried three times to reprocess the loan, but the coerced documents in the system blocked it each time. Bottom line is this: never go through Chase’s call center for a HARP refinance. If you do, hire a lawyer to work with you.
Yes, you can refinance with the new HARP mortgage program, The new guidelines from Fannie Mae state that if you have PMI you must keep your PMI but are eligible to refinance.
A couple of questions on the New HARP program. First how does this work? Does the amount you owe revert to what your house is now worth? Where do you begin? By calling various mortgage companies? Do you have to have a good credit score to qualify?
They will not drop the amount that you owe to the current appraised value. The thought process behind the program is if you already have a loan with Fannie or Freddie it is in the best interest of all parties involved to allow homeowners to refinance regardless of their current situation in to a more stable program(I.E. fixed rate, lower interest rate, lower payments, etc..).
Just contact WF to do HARP 2 Refi on my Condo, reps said won’t incorp New HARP 2 til weeks from now. I have also learned with HARP Refi you’re required to have PPTYTX & HOA impounded. Currently I have 30yrs fixed at 5.875% monthly pmt $2620 without impound, HOA $200 PPTYTX $625. I’m underwater at 104% looking to lower rate & pmt. WF offer me HARP(which I qualified) refi at 4.875% with no point w/ CC included in loan monthly saving of about $217.00. However, impound is req’d which run me about at $3207/mo compare to $2820/mo(cur P+I and HOA). I don’t pay PPTYTX til Apr and Dec yearly. Confuse on whether to take the deal or not. If no impound, that would be great. Seek Help.
Impounds are required on anyone over 80% LTV. Its is a fannie and freddie requirement. It is non negotiable.
This impounding is on the new harp 2 as well? How can they do it with hoa? I understand pptytax. How do they distribute the hoa to the company? What if hoa management changes hands (ours has changed 2x in last 2yrs)?
Am I eligible if self-employed beginning in Ocober, 2010? I have been told I am not/ need 2 years financials. I receive W2 income from the company I own. Thought we were trying to promote the small business owners in USA? thanks
I just called BoA and they are telling me that it is not possible to re-fi under (HARP 2) until Feb 12. I explained that this information is contrary to what I’m reading online – but their comment seems to be “too bad”.
This would depend on your situation the HARP program FAQ has more info on the timeline and restrictions.
No, it doesn’t seem to depend on anything other than Bank of America. I spent over an hour on the phone this morning with very high hopes, only to be deflated by the new that I am eligible under the new guidelines, but BoA is unable to process or take any action until Feb 12. Thankfully 2012 is an election year.
And also it appears the flaw is in the design.
The Fannie Mae website clearly shows the following:
“DU Implementation of LTV Expansion
The changes to the LTV ratio limits described above will be implemented in DU in March 2012. Until such time as DU is updated, DU loan casefiles that receive an Ineligible recommendation due to an LTV ratio above
125% will not be eligible for delivery.”
So until such time as DU is updated, there will be no Re-Fi’s under the new HARP guidelines.
As echoed above, this level of bureaucracy may cost me my eligibility due to my own personal situation.
So, now . . . if I really must wait until March 2012 . . . then what I’m really waiting for is November 6, 2012.
Good luck to everyone who was waiting.
I understand your frustration you should call 1-888-995-HOPE to talk with the people about your situation. They are very helpful.
If your particular situation puts you over 125% and Fannie Mae owns your loan it looks like you will have to wait until March if, if I am reading it right. Have you spoken with another loan officer?
SO you can elect a new bank? Sounds like BofA is the culprit here. The regulations under which they operate long preceeded the current administration.
I thought that the HARP new program would refinace the amount your house is worth now, not what you owe. That means the payments would still be the same even if you get a fixed rate from 6 and a half percent to 4 and a half percent. What is the truth? Thank you
You are thinking of the HAMP program.
No, I am thinking of the new HARP 2 refinance. What the heck is HAMP?
HAMP is a Loan Modification program. Neither HAMP or HARP will reduce your principal. If your interest rate is reduced – your payment will be reduced….assuming the same term is used.
I want to refinance using HARP but my lender GMAC tells me i cannot as i have PMI on my Loan, They told me that a new program with HARP is coming out in Dec do i qualify? Thanks
The new HARP program allows PMI.
Do you know if that includes lender-based PMI?
No. They specifically disallow it if you bought your house and didn’t pay 20% down. It’s better if you are paying the PMI yourself. After a while (I’ve been trying to do this since August), you just realize that it’s all a scam.
do you have to go with your current lender or can you use another broker/lender? I keep getting different answers on this.
The mortgage broke from Bank of America told me that since I have PMI, I am not eligible for the HARP 2 program???????
Mortgage insurers are more than willing to allow for HARP refinances on loans that they insure. MI companies are aware of the repayment crisis that many homeowners are facing, and will provide the resources to allow them to refinance and stabilize their mortgages. Fannie Mae has been collaborating with the MIs to modify existing MI certificates so that loans with MI coverage can be easily refinanced.
JUST WAS TOLD BY GMAC THAT THEY DO NOT HAVE A PROGRAM IN PLACE FOR HARP IF YOUR HOME HAS A LPI.WHAT TO DO NEXT???
We have a first and second mortgage. Both mortgages are backed by Freddie/Fannie, but the first is thru Citi and the second is thru Wells Fargo. Can we use the Harp program to refinance both first and second into one loan? We are either underwater by about $10,000 or above by about $10,000 depending who you ask.
You can not combine the two mortgages in the new HARP Program.
Is it possible to use HARP to refinance both mortgages separately?
I just heard of a program were the 1st. works with the 2nd to modify the loans.2MP and Treasury FHA second Lien program FHA2LP.
web site. Makinghomesaffordable.gov
Ok so sick of dealing with bank of amaerica. I’m trying to do the refi with the harp and they told me since I have pmi I have to bring 6000.0o? I guess they say my house doesn’t appraise for what fannie mae will allow???? PLease help I feel like bofa just feeds me bs after bs.
There are new guidelines that are coming out today December 1, 2011 that may help you. Check with a different lender other than Bank of America. With the new program you don’t have to go through your present lender.
One of the benefits to the new HARP program is that you don’t have to go through your current lender to get the refinance done. You can use a different bank or broker. As of today, there has been very little information released to the lending community about the guidelines we must follow. My suggestion would be to inquire about the New HARP program with your local bank or contact a Mortgage broker. They will be much more willing to help you out.
We want to apply for new HARP Program. Where do we apply? Do we need to call BOA directly? What lenders are participating inthe program?
We have a 30 year fixed loan
Thank you
you all have been so helpful . Learned quite a bit. Thank you for taking time to help so many.
My current note is held by Bank of America. Must I refinance directly with them or may I choose a loan broker. Also, I currently have a fixed rate note as opposed to an adjustable. Under HARP, am I eligible to trade my fixed 30 year for a 15 year fixed? Thank You
David,
You may use any lender that participates in the program. Moving from a 30 year fixed to a 15 year fixed would be considered movement to a more stable product, so yes you would be eligible.
When I read the new guidelines it does not mention you have to currently live in the home that you want refinanced. So do you have to live in or not?
Walla, I understand the program to be owner occupied.
Yes, you do have to occupy the home.
I am with Everhome Mortgage and I am attempting to do HARP. I’ve talked to a loan officer twice who says that Everhome has the Guidelines for the Harp 2.0 but does not yet have a loan program to originate. This sounds like smoke is being blown. Can anyone tell me if Everhome should be doing Harp 2.0 loans???
My mortgage just switched to M & T Bank, called them today, I was told to call back after the first of the year, that it wasn’t passed yet???
My mortgage now is with fanniemae but it is a subprime mortgage. Will I qualify under the new HARP program
Yes, however your application must be approved by DU it can not be manually underwritten.
In your reply to my question you said that my loan app would have to be approved by D U…What is D U…. Thank you
Mike, it’s the software program used by lenders to submit the loans via automated underwriting. Desktop Underwriter is an industry term.
I was told that I did not qualify for the 3-step HARP refinance because my home is log. Is this a general rule or just arbitrary on the part of the lender I spoke to?
I’m in the process of refinancing my condo with wells Fargo. They are requiring a appraisal. Dose it make a difference that I have a condo? I thought I should not need a appraisal .
With the HARP-2 you do not need an appraisal.
So under the old HARP program those who have MI could not refinance. Is that going to change?
Suzanne, those who had MI on the existing loan did require MI on the new loan, even on the old HARP.
I understand that you are not eleigible if you are paying mortgage insurance. Obviously this eliminates a large number of homeowners. Is this true?
No, homeowners with mortgage insurance are eligible for the HARP program.
The Mortgage Insurance co. will just recertify the current insurance in place. That will stay the same. Only the loan changes.
So currently pay 61 MI if I refy now they tell me new rate would be 200 Is this true?
Someone said the payments would ballon at the end of the loan? Are there any “catches” to these loans?
The product you refinance into with HARP 2.0 has to be “a more stable product” I.E. they move you from ARM to a fixed rate mortgage.
Unlike mods, where there is usually an abrupt end to the loan with a balloon, the HARP does not. It is a new mortgage with conforming guidelines.
Although Wells Fargo has agreed to refinance my home loan the charges have eaten up what equity I had, gave me a rate of 4.875 and they want to charge me for an appraisal. Is there an agency I can speak to in order to find out if they are giving me the best they can. Would appreciate any tips. Glendale area of Arizona
Grandma,
You should probably shop around a little bit. The new HARP should not require an appraisal also the rates have not been that high since April.
The rate could be appropriate depending on credit scores. Not everyone qualifies for the same rates!
can you recommend a lender?
Note automated underwriting has to be used and only if scored without conditions can you get away from needing to get and pay for an appraisal. No lender would require an appraisal where it wasn’t required.
I am trying to do mine with Wells Fargo to and I got the same rate. However the problem is they want me to pay for an appraisal now but I don’t want to because the new Harp 2.0 isn’t in effect yet with them. I keep calling my rep and he states he don’t know when they will have the update. Now I just read on another site that Wells Fargo might not put the new guidelines in effect until March 2012. If that is the case – that sucks. Rates may even be higher by then.
Grandma, the appraisal is likely required but the interest rate is quite high. Shopping around would help you dramatically. Remember banks have their 1 guideline that overlays the program and may limit what they can do, even though it’s allowed in the program. Finding a lender over a bank gives them many “investors” to choose from.
is their a specific closing costs set by harp, in ny. to a % of refinanced loan, say 5%, on 50,000 loan thank you
I’m seeing conflicting information on whether this HARP program applies to investment property as well as owner occupied. My lender BofA doesn’t have this in place yet and was not much help in answering any questions. So will this program apply to my rental as well as my primary?
BofA has started doing HARP loans on investment properties again, I just started mine. Are you sure your current investor is either Fannie or Freddie and you don’t have mortgage insurance?
Chad – is this true? I just spoke with BofA and the person I spoke with said they are not doing HARP refinances on investment properties yet. Very discouraged – he did not seem to know anything about HARP. Do you have a contact person I can contact?
Yes, I am also seeing a lot of conflicting information about whether or not the property has to be owner-occupied. I also talked with Wells Fargo and they said it had to be owner-occupied or it was not eligible, but yet the new guidelines don’t mention anything about that. Any substantive information on this would be much appreciated.
I Talked to Huntington and cITI AND they said you could refi with harp if the no work in a non owner occupied. AFTER MARCH SUPPOSDY ANY LENDER CAN DO ANY HARP.
My banker Wells Farge is telling me I cannot do a HARP if my mortgage has a revocble trust is this true?
You cannot do a HARP “3 Step Express” with no fees if property held in a Rev Trust, but you can do a regular HARP with a “Trust Certification”. Easy !
my mortgage lender is us bank for my primary home and my rental home. both properties are under water. Primary home is like 200 thousand under and the rental 30 thousand under. Both properties are neither fannie mae or freddie mac. what are my best options.i am planning to short sale the primary home and going back to the rental house which is lesser of under water worth. i really would love to stay at my primary home though. please advise.thank you
Shera,
Here is a link for the “Principal Reduction Alternative” US bank is a lender on there.
http://www.makinghomeaffordable.gov/programs/lower-payments/Pages/pra.aspx
Got a lender in Ohio helping with HARP got a rate of 3.375 FOR 24.6 years with no appraisal.
Can you tell me of the lender in Ohio with HARP.
Laurelyn
Laurelyn- That is either a question or BS from Garrett. The no appraisal program was not in effect until today. 3.375% on a 30 year fixed would COST a borrower about 5 points. Feel free to search me, Id be happy to set you straight.
I spoke with Wells Fargo last night. I qualify for the HARP program, but like many others, they want me to spend $385 for an appraisal and the closing costs are $3600, which seem astronomically high to me. They told me that those are the going rates for closing costs. Also, the interest rate is 4.75%. They told me that because they have my current mortgage, I have to go through them for the HARP program. Is that true? Who is the Ohio lender???? I am very interested.
Lisa,
You do not have to use your current lender for the new HARP Program. There are many lenders that may do the loan for you, shop around talk to some other loan officers.
I tried refinancing through our Mortgage Holder (Wells Fargo). We were turned down because our debt to Income was high and it was an investment proeprty. Isn’t that what this program is for, to assist (Adjust) people so they can make their payments?
Fannie Mae doesn’t have a maximum Debt to Income ratio and they don’t care if it is an investment property for HARP. But different lenders have
different overrides that they can apply to the program.You may want to try some other lenders. The other issue though is that most lenders aren’t as lenient in their guidelines when refinancing another lender’s debt. I would try a couple other lenders to see what they say.
I was told the same thing from my mortgage lender (Baxter Credit Union). I really am tired of getting the run around. My husband has been out of work for 1 year and some months..we have never missed a payment the whole 6 years we have been in this house, meaning we had to put other bills off to pay for our mortgage and they still cannot help us because our DTI is too high? HELLO, of course we are going to have some kind of debt accumulated.. DUH. NO OTHER LENDER WILL TOUCH US. This is our primary residence. @ Melanie, so you are telling me that no matter what the guidelines are, the bank can override some of the qualifying criteria. That’s just great, another way to say we are losing our house regardless. My frustration is through the roof already!
I went through the whole process with Chase I was told I’d get 4.75 from my original 6.5 but never saw the Good Faith estimate. It moved fast (2 & weeks) I’m set for closing tomorrow. Just talked to the woman meeting me for closing and she tells me I’m supposed to bring $675.00 cash to the table and my interest rate is at 5.0. I verified that with the lender even though they never bothered to mention it to me. I cancelled the appt and am going somewhere else. Seems like the thing to do here.
Yes it is. Days of the bait and switch are over. Better yet, close the loan and within the first few days (your right of rescission period) rescind the loan and you will be entitled to any costs you incurred (appraisal) to be returned to you.
Isn’t the new loan an FHA loan, so it requires mortgage insurance…correct?
No
I own my home since ror more than 15 years tha is my primary home now we just refinance using the harp refinance in september 2011 now we are looking to buy a second home and move to the new home and rent the harp refinance home is that legal? if not wath can i do to make it legal? home
Yes, this is OK. It’s all about the occupancy intent when you originally applied- you can change your mind later.
You should read your loan documents. If you refinanced as owner occupied you received more favorable terms than as an investment property and you are required to reside in the property as your principal residence for 12 months. The only valid reason allowing a move would be something like relocation due to new job outside a reasonable travel distance, etc. Your decision to convert to investment property could be considered loan fraud.
Under HARP refinance for an underwater mortgage, do you end up having to pay mortgage insurance even though you aren’t on the original loan?
No, only if you already have MI is it required.
Queens, NY – Everyone has been so generous with their info. Thank you. My Q/Q – Chase has told us that we qualify for HARP, however, they’re asking for an appraisal (we’ve owned the property for 4 yrs.) & they quoted a 4.8% from 5.8% . We have good credit & have never been late/missed a payment. We also have PMI. Are these things negotiable? Thks.
JE,
From my understanding a full appraisal is not required by Fannie or Freddie, however different lenders may have different additional requirements. I would recommend speaking to another loan officer just to get a second estimate.
Freddie is requiring an appraisal now, (pre HARP 2.0), Fannie does not. Not sure if they will change with the revamp of HARP
I’m having a hard time finding a lender that does not require an appraisal or extra processing fees. Can you recommend one?
I currently have a loan with US Bank and they want to charge me at least $2500 and no guarantee my rate will decrease.
The appraisal is required, due to the need for them to know they type of MBS (mortgage backed security) that it will grouped as (if over 105% etc). It does not matter the value to get approved though
I am with chase. I have 1st and 2nd mortgates and i am on the process of refinace thur harp program. My current rate is 6.125%. they agree to lower the interest rate to 4.375%. however, they kept charging me points and i do not want to pay for points. They told me if i don’t want to buy points than go with 4.5%. they also said they can’t give no credit towards closing cost either. Closing cost is about 7K. How do i negociate with the mortgate consultant to get 4.375% without paying points?
Tu, not sure why you aren’t moving forward. If the second is included in the transaction, it is considered a cash-out in most instances. With that, there is also an additional cost. They also will limit the loan to value. The rate is good without the upfront fees. Normally points pay down the mortgage lower then .125% though. Check around but it seems like a good rate.
I have an interest only adjustable loan which matures in March. In addition, my property is $90,000. under water. I have good credit and good mortgage payment history. I was declined for the HARP approximately 4 months ago because my property was too much under water. I was informed by my lender that I would need $60,000 dollars to quality for the HARP. Would I qualify for the new HARP 2.0 program?
From what you are saying it sounds like you are the perfect candidate for the new HARP Program.
I had the same issue. Please keep me informed on what they can do for you.
Diana, you are exactly what this program is designed to help.
Diana, I also have an interest only adjustable loan and I qualified for the new HARP program. In my situation, going from an ARM to a 30 year fix sounds great, but on paper with the HARP program my monthly payments would go up $200-$300 a month. So frustrating! Anyways, this program doesn’t work for everybody. Mass media sure did a great job getting our hopes up!
I completed a deed in lieu on another property 1/12 years ago. I have never been late on my current property which I have now owned for more that 2 years. Is it possible to refinance my current home at this point? It is a Fannie Mae backed loan. I need to refinance to remove my wife’s name from loan as per our divorce agreement. Thanks
Jon, that short answer is yes you should have no problem. Having a strong file and proper explanations will help make it easier.
We refinanced (I think through HARP but not sure?) about 2 years ago to lower our interest rate. When the new modifications to HARP were announcerd last month, I ready that we could refinance and go from a 30 year to a 15 year without a dramatic change in payment – is this true? Our situation is:
Owe: $198,000
Rate: 5 1/8
30 year fixed
We’re probably $20K – $30K upside down and trying to find a way to make a dent in what we owe – can HARP help us?
Cassie,
You would really need to weigh all of your options and compare the fees you will be charged vs interest rate savings. Personally I would say paying a little extra on your current mortgage each month might be the route to take. For example if you added a $250 principal only payment each month you would knock 10 years off your mortgage. Here is a link to a good calculator to use http://www.bankrate.com/calculators/mortgages/loan-calculator.aspx
Cassie, Cutting 160 payments by paying for closing costs is the way to go. Paying the additional money first, will never catch up with cutting 13 years off. The amortization on the shorter term also makes it a no brainer. AND if the payment is not going to change by much, then take the “additional payment” and put it in a savings account.
Giving the bank your money today for a benefit 18 or 28 years from now makes no sense. Even if it grows at 1%, it is your money and you can cut a check sooner then 10 years earlier if you choose. Sorry Chargers Fan.
Will the new HARP be available in Puerto Rico? My loan is with Fannie
Thanx
Yes
I am currently under water and would like to lower my interest rate. What are the requirements for harp as far as fees,apraisels and such? I fit all the other criteria, but cant afford to spend 5k plus to lower my rate. It would be nice to know these things before I call my lender..Thanks
I believe your lender would determine most of those fees. The fees for HARP vary between Fannie and Freddie, also certain situations have effects as well. You really need to talk to a loan officer to determine what your costs would be. For anyone to just throw out some random closing cost or interest rate is really irresponsible in my opinion.
All fees associated with your new loan will be included in your loan. There should be no out of pocket cost for you.
I called Chase about HARP & on the phone the Loan Officer was able to give me APPROXIMATE costs & interest rate. That gave me a pretty good idea of what the finances would be.
Who determines the rate for the new harp?and how do I know if I am getting the best program for my family future.
What about PMI? Before the new announcement if your loan had PMI you had to go through a bank and could only do 105% LTV. I am so tired of seeing the RATS get help but a first time homebuyer who had PMI attached to their loan at the time Fannie acquired it (and hasn’t missed or been 1 day late in 5 years!) is just told to #send. Oh, my mortgage carrier is SOLELY a servicer also, so I can’t go the 1 route available to me. Any word on PMI? PPLLEEAASSEE!!??
You shoulld be ok. Previously, they did not allow you to go elsewhere, but now have options to shop for your rate and approval.
If you had PMI, you will need it still. But it should not change.
You can exceed 105%.
Are there any refi programs for people in the following predicament:
Good credit.
Stable long term jobs.
NO Fannie Mae or Freddie Mac.
Upside down $50,000 on house.
We have been told “No” LITERALLY over 20 times.
If you know of a company that will refi us, please e mail me, dac6902 at yahoo dot com
We were told by our mortgage lienholder, Chase, that we weren’t elligble for a HARP refinance loan because our mortgage insurance was paid in advance by our lender. Will the new rules change this stumbling block?
Is your loan with Fannie Mae or Freddie Mac and what date was it purchased?
I have a Freddie Mac loan, 5/07, with MIP. B of A says no because of MIP. What banks in Al are partici[pating even with lender paid MIP?
Any lender willing to obtain MI coverage comparable to current level. Also B of A should be able to refinance your loan it will just need to be manually underwritten.
My wife and I have been trying to refinance using the harp program for about a year now. We currently have a conventional loan with BoA with built in PMI. BoA said we’re not qualified for the harp program because we have a insurance attached to my loan. The HARP program does not have such specification, this is left to the banks’ discretion(big mistake). This is their only reason for our disqualification, i don’t understand why BoA does not want to help it’s customers that are struggling to make ends meet. You just feel so helpless when these big banks like BoA are making hundreds of millions in profit and still can’t be fair to it’s customers.
Alex, each lender will have their own overlays and criteria as to what they feel is a “good loan”. You have options outside the current servicer. Also, not to kick BoA under the bus, but this is brand new and yet to be finalized. What you describe may be the guidelines of the past year and not the new program coming out.
Can mortgage brokers originate the harp program?
Mortgage brokers can originate the HARP program. What state are you in?
Yes brokers can help you get a HARP refinance. However, if you have a second mortgage, the lienholder of that second mortgage will have to agree to subordinate the second lien to the new first mortgage. If the lender who holds your second mortgage is the same lender who has your first mortgage, they will be reluctant to let your first mortgage walk away into the arms of another lender while they are stuck with just the smaller second lien.
The way it looks right now, many mortgage brokers will have to wait until March 2012. The banks will be able to start December 1, the problem is the banks are back logged 60-90 days.
I am currently up to date on my mortgage but the appraisal value of my house is about 100k less than what my current principle is on my loan. Will this program be able to restructure my principal to what the appraisal value of my house is?
No, this is not a debt-reduction program. Your principle is not cut, you are simply allowed to refinance so you can (conceivably) get a lower interest rate and/or move from an adjustable or interst-only loan into a more stable fixed rate loan.
I filed bankruptcy 2.5 years ago. All of my mortgage payments have been paid on time, but am underwater. Does the bankruptcy exclude me from a HARP?
Yes. You may be eligible after 3 years from your BK discharge date, however.
I’ve noticed the biggest misconception about HARP loans is you have to use your current lender. being in the business I can tell you that is simply not true. use any one u prefer.
Troy, this is a critical issue to me. I am a mortgage originator (w-2′d) and my lender insists that the borrower must take his loan to the same lender that currently services it. I can’t believe that is in the HARP regs,before or now. I have some 14-15 apps I need to get to work on with a lender that is serious about this program.
Fred, if your employer thinks that way, then find someone who actually reads to employ you. If you are in Florida, I would be happy to assist.
I, TOO, WAS INFORMED THAT ONLY MY CURRENT MORTGAGE CARRIER WOULD DO THE REFI. I AM HARP ELIGIBLE, MY MORTGAGE IS FANNIE MAE OWNED, AND GMAC WROTE THE MORTGAGE. I WAS ALSO TOLD I COULD RENT MY HOUSE, HOWEVER, I’VE JUST LEARNED THAT ONCE I RENT OUT, MY PROPERTY BECOMES INELIGIBLE FOR HARP. THIS FEELS LIKE SUCH A RUNAROUND.
WHAT TO DO?
CAN I APPROACH OTHER LENDERS? MY HOUSE IS ABOUT $35,000 UNDERWATER. AND IS IT TRUE I CANNOT RENT TO OTHERS? MUST I BE LIVING IN THE HOME, OR CAN I MOVE TO A WARMER, CHEAPER CLIMATE FOR THE WINTER MONTHS, TO EASE MY ARTHRITIS?
Have a convenional fixed rate loan with chase at 7,12% and would like to refinance my loan…I am currently underwater and want to get my payments down…How do I go about applying for the HARP program
Contact chase and ask them about their HARP application process.
If you are happy with Chase I would agree but you are not obligated to refinance through your lender. Also different lenders have different timelines of when they will have this program implemented. Something to take in to consideration if rates start to rise.
Bernie, just like the day you decided to buy, go find the company you want to give your money to. Find someone experienced and and if that happens to be Chase, then so be it. If not, shopping may give you a better loan.
Hello I have never been late on my mortgage or personal debt. I did have a business loan that I dfaulted on when the economy turned. It was guaranteed by me and impacted my credit score. My wife has a 790 score and as I said all our personal debt have always been paid on time. Will I qualify?
Whomever the primary applicant will be must have a credit score of at least 660.
From the new guideline released from both Fannie Mae & Freddie Mac the minimum credit score was 620.
Terry, from my review, credit scores are NOT considered to qualify. You will have issue if the defaulted debt can attach to the property as the lender will surely ask. Both will have to be on the loan if you both are on it now. You can be removed only if she can qualify individually and you are also coming off the deed or divorcing.
MtgMan your credit scores are a factor in refinancing – the mortgage company will not refi if you have lousy credit. I have been in this process for months with SUNTRUST mortgage. The govt should know that mortgage companies are scamming the american public…this is an outrage.
Several years ago I had my mortgage loan refinanced. The original loan was an FHA loan. Now BoA owns the loan. Can I refinance this loan through the HARP program?
No FHA (government loans) are not allowed.
There are a few FHA refinance programs out there.
http://fha-refinance-program.com/fha-allows-greater-refinancing-for-underwater-homeowners/
http://fha-refinance-program.com/fha-short-refinance/
http://fha-refinance-program.com/homeowner-stability-initiative/
What I learned so far is:
1- your mortgage has to be originated by Fannie or Freddy.
2- you must not have refinanced since 2009.
3- You can easily check online on F/F websites to see if your mortgage is owned by them. plug in your account # and look it up. It either says your mortgage is owned by them or not. BoA is irrelevant for harp eligibility.
I previously refinanced under this program last year and would like to again since rates have dropped significantly. Is there a limit to the number of times a person can refi under this program?
Yes there is a limit. You can only refi on the HARP program once.
Also would like info for applying for refinancing of loan not by fanny m/or freddie m for 1st & 2nd mortgages combined w/fixed rates asap!!
Programs to help underwater homeowners?
FHA Short Refinance Program.
The purpose of FHA Short Refinance is simple: allow hardworking homeowners to refinance into FHA-insured mortgages that are sustainable and affordable.
When your current lender consents to refinance, you will have the amount owed on your first mortgage readjusted at or less than 97.75% of your current home value.
http://fha-refinance-program.com/fha-short-refinance/
State & Federal Mortgage programs.
Some states have additional mortgage programs to help underwater homeowners.
http://government-mortgages.com/
http://government-mortgages.com/making-home-affordable-programs/making-home-affordable.html
Best Regards
Will this program be extended to cover loans not owned by FannieMae/FreddieMac? Our loan is owned by AmericaServicingCompany.
This is specific and exclusive to Fannie Mae and Freddie Mac owned loans which were originated prior to May 31,2009.
Have you checked to see if Fannie or Freddie is the owner? Here are the websites:
Freddie Mac: https://ww3.freddiemac.com/corporate/
Fannie Mae:
http://www.fanniemae.com/loanlookup/
If it says no match found then you do not have a Fannie or Freddie loan and would not be eligible for the HARP program.
Sjellis33, The web sites provided are pretty good indicators if your loan is Fannie or Freddie owned, but not guaranteed. To know for sure you would have to go thru a loan application. ASC may own, or may just service your loan (collect payments).
Are the new HARP guidelines available to borrowers as of today, November 15th?
Starts December 1st
I have heard that the guidelines are supposed to be released today, Nov 15. I would like to know where on the web, can they be viewed.
I came here because I am looking for the same information… Nothing in the media or on this site as of yet…
The news report I heard on major network stated the new program would be available 12/1/2011.
New applications can be submitted to HARP program lenders effective 12/01/2011.
I ALSO WOULD LIKE TO KNOW WHEN THIS WILL GO INTO EFFECT!
I understand the new guidelines came out yesterday and the program is supposed to roll out 12/6/11
How do I know whether I have a Fannie Mae or Freddie Mac loan in order to qualify for HARP?
Call your mortgage company and they will tell you.
you can check the websites:
http://www.fanniemae.com
http://www.freddiemac.com
insert your address and it will tell you if it’s backed by either agencies
will i be able refinance my rental property that is upside down?
Under the current HARP program you can refinance an investment property. It’s not limited to owner occupied.
Can homeowners whose mortgages are financed with credit unions participate in the NEW HARP program?
Only those loans originally funded as Fannie Mae or Freddie Mac loans prior to May 31, 2009 will be eligible for refinance with the HARP program.
If your home is owned by Fannie Mae or Freddie Mac it can be. You can look up your address on Fannie and Freddie’s website.
Or you can use the link “Who owns my loan” up above.
Dodd- Frank states there must be an interior inpsection appraisal on these typs of loans, so to utulize a AVM would be illegal!
What alternatives are there for loans not owned Fannie Mae and Freddie Mac?
I would like yo know when this takes effect.
Does your current loan still have to be from Fanny Mae or Fanny Mac or can it be from another leneder?
Does the harp program apply to second home mortgage?
NO
I understand the original HARP would only refinance 1st mortgages but the new one that is scheduled to roll out on 12/6/11 is supposed to allow refinances on first & second mortgages…
can a home equity loan and first mortgage be refinaced together
No, the HARP program only allows for the 1st mortgage to be refinanced the 2nd would have to be subordinated or paid off with other funds.
My financial adviser says yes it can be rolled over, not only what you owe but the full extent of the credit line. worth double checking…
HARP program is only for loans owned by Fannie or Freddie….2nd mortgages are portfolio products owned by a bank, not Fannie or Freddie, they are not eligible.
We are wanting to Refinance but, have a conventional loan. My husband does qualify for VA benefits. I was hoping HARP could help but, not having an Fannie Mae or Freddy Mac loan prevents us from doing this. Is there anyone that can help us. In 40 years we haven’t had as much as a late payment! Please Help Us.
Clarice & Joe
Clarice-
Look into the FHA refinancing options such as the FHA-HAMP program or the FHA short-refinancing option. I would find a mortgage broker who specializes in refinancing. They can be a great resource on what programs are available.
First, allowing people to refi above 25% negative equity and growing? That’s just wrong!
Second, if this is just a GREAT deal, then why is there still a CAP 5/31/09 on the age of the loans.
It is a good thing. Fannie & Freddie are already on the line for the mortgage. Allowing the borrower to refinance will improve the borrower’s cash flow and reduce the liklihood of a default. This has been possible for FHA loans forever. This is one of the first smart things I have seen done.
I believe it is a good thing, however I feel it should be for a customers PRIMARY residence only so they can keep a roof over their heads.. Investments and second homes should not apply, if you cannot afford to keep up with a mortgage payment on more than one home, I’m sorry, you should sell the others and live within your means.
Being active duty military, we have moved around and are accidental landlords. We had intentions of selling after 5 years, not holding onto it because the market collapsed. We do live within our means, think of all scenerious before offering opinions. Our property is underwater as well. Should we be left out of this deal because of the sacrifice of military?
They need to come out with a program to help everyone whose home is valued less than the balance on their mortgage and not just loans owned by Fannie or Freddie
Does it matter if my single family home is on 12 acres? It is owned by Freddie. My appraisal is 470K and loan is 380K. I am moving from primary res to investment prop and re-fi a 5/1 ARM. Thanks.
WHEN WILL THIS GO INTO EFFECT?
Please tell what the requirements for refinancing my current Fannit Mae Loan.
Thanks,
William Cunningham
can a home equity loan and first mortgage be refinanced together
I refinanced my house 2 1/2 yrs ago,with a home equity loan fixed at 6.25 .I still owe 85,000 my house is only valued at 49,000. Have a 820 score. Can I refinance,under Harp
The new HARP Guidelines are supposed to alleviate LTV requirements.
Hi Katyh,
No you can not combine your first and equity line into 1 new mortgage but you are able to refinance your current 1st mortgage and keep open your equity line, considering your equity line lender allows this. Please email with any questions. Thanks.
Did they lower the price of the refi? BOA tried to charge me 10,000 bucks just to lower my payment by less than 200 bucks per month. They wanted to charge me points and it seemed like a RIP OFF.
I would look closer at your good faith estimate, the bulk of your cost are probably not bank related rather they are title, escrows, state and county charges. If you are getting charged points you should be able to negotiate out of those
Looking to refi. Purchased house in 2008 and refinanced in Dec 2009. Does this mean I exceeded the July 2009 cut-off for this program? I owe on my mortgage approx $20-$30,000 more than my house is valued at. Would love to take advantage of this program. Please send me more info!!
You are out.
I’m interested in refinancing my mortgage to lower my payment to help us out. thanks, Sue
When can I apply and how do I start?
have small balance on first mtg. 14,000.00 at 5.75% interest. Have home equity loan for 40,000.00. What can I do to re-finance first mtg and how would I go about getting help with home equity loan which is current prime rate. I only pay the interest on the home equity loan now.Also who i seek out to help me in this situation. thanks Maureen
Looking to refi. Purchased house in 2007 and refinanced in Dec 2010. Does this mean I exceeded the July 2009 cut-off for this program? I owe on my mortgage approx $80-$90,000 more than my house is valued at. Would love to take advantage of this program. Please send me more info!!
SSS, Sorry but you can not take advantage of the HARP porgram at this time. Your loan must have been purchased by Fannie/Freddie by 6/1/2009. any loans done after that will not qualify