New Harp Mortgage Program Guidelines
Announced by the President, October 24, 2011, the New Harp mortgage program guidelines allow 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, 2015.
- 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.
Click here for HARP 3.0 Updates
(245 votes, average: 3.14 out of 5)
Loading ...
advertisement
Comments (892)
P. Chun
| #
We have good credit, have not missed a mortgage payment but are unable to qualify for a HARP loan due to our debit ratio which went up since they now add our daughter’s student loans to our debt. Which made it higher than their debt to income ratio. We had to go the student loan route when my husband lost his job back in 2008. Refinancing would reduce monthly payments and our interest rate and allow us to meet all our obligations without doing a bankruptcy filing. Any info to help us?
Reply
earl rush
| #
MORTAGE THRU CHASE AND UNDER WATER $50,000-60,000 FILED CHAPTER 13 THREE YEARS AGO PAID MORTAGE LAST THREE YEARS ON TIME WILL I QUAILFY FOR HARP PROGRAM TO REFINACE AND IF I CAN IF CHASE WON;T DO IT HOW DOES THIS WORK WITH ANOTHER BANK OR FINACER TO TKE CARE OF THE OLD LOAN?
Reply
Nana
| #
I am anxiously waiting for the program that would help all the thousands of home owners who have never been late on their mortgage, but stuck with high rates because they do not have a Freddie or Fannie loans. They cannot refinance under HARP and cannot refinance with any bank because they are upside down. just like the banks got help from the tax payers, these home owners need help too.
Reply
janeth
| #
We have lived in our home for 10 years, my husband lost his job a little more than a year ago. Since then we have been struggling and fortunately we still on time. with our mortage. We have been trying to find ways to stay afloat but things are becoming more difficult. Recently we decided to try the HARP and at this time is in process waiting for an answer, however talking to my sister who lives out of state she had mention about looking for a job for me and my husband and the possibility of moving. That means if we find a job out state there will be a possibility of having to rent our home. Is this possible?
Reply
CMT
| #
Chase told me that I am not qualified for the HARP refinance since my loan carries lender paid mortgage insurance; has anyone been told been told such a reason? How do you handle?
Reply
Kenneth
| #
American Servicing Company have our loan, and they do not offer the Harp Program. What other options do we have.
Reply
Sharon
| #
I have a loan (Freddie mac) and was told by my lender that I qualified for a HARP refi.. later i was told Freddie MAc does not extend HARP loans if your residence is a condo. IS this really the case?
Reply
GJC
| #
is there a difference in a harp program loan and a conventional loan?
Reply
Eric
| #
HARP are Conventional Loans that are serviced by Fannie or Freddie. All HARP is, is a program that allow’s those that are underwater in their homes to take advantage of the lower interest rates. You still have to credit qualify, however value typically isnt the issue.
Reply
GJC
| #
I received a flyer from Chase re: HARP offering to refinace a current morgage of 222k, 30 year fixed at 4.25 with NO CLOSING COST, no fees at all really. I didnt follow up on it, but was in bank, spoke to loan officer this week and he offered a harp, for 225,500, 4.125, and said I would need to pay 395 application fee and 500 at closing. when I met with him, the actual closing cost was something like 8500, but wait he said – thats before adjustments, you know that smart math they use,and then he said I would need to bring 1,800 to closing. When I asked about the 500, and the fact that the flyer said no charge, he said, he had not finished adjusting and I would probably not have to pay the closing at all. Does this sound on the up and up to anyone? And why is there such a difference in amount of current loan and new, if I am not getting any money back? His answer made no sense. He said the flyer was getting the extra money back through the fact that the interest rates were different? I am confused and hopefully i didnt confuse everyone. Is this a common practice
Reply
D. M. H.
| #
Wow! I was told about the same “crap” from Ally Bank when I clicked on my GMAC Mortgage to refinance. Ally handles all of the GMAC accounts. This was a “phone” conversation, which I hate and never should have done. He started out though, with $2,000 closing costs and a 3.85% rate and then, when we were almost done, it was up to $3976!! I asked him what happened to the $2,000 and was told his first figures were “off”. We have tons of equity in our home, great credit, and this offer didn’t even seem to apply to us, but he said it did. But I’m with you. Where are they getting these figures! We went into Chase and could get a 30 year fixed @ 3.67%, with closing costs of (at the most) $3700. Where do these people get these other figures on the HARP!!!
Reply
KAELAN
| #
I participated in the original making home affordable program. Though my monthly payments were reduced, my outstanding balance was not reduced. If I were to move, I’d have to pay the entire outstanding balance. Is that right? Now Bank of America has sold my mortgage to OCWEN. OMG, customer service is in India and they are difficult to understand. In addition, when I switched my homeowner’s and earthquake insurance, they totally screwed things up. Every time you call there is a different story. Can I now participate in this HARP program and get my underwater mortgage permanently reduced?
Reply
Nancy
| #
I was told I did not qualify for the HARP
program, because I purchased my home before
January 2009 and refinanced in early 2011.
They said to wait until HARP 3 comes out.
Is this a true statement?
Reply
Mike G.
| #
Last week I was pre-approved by Bank of America for HARP on my residence. Bank of America then changed their mind and turned us down because of a late payment on a different investment property with Wachovia/Wells Fargo who are impossible to work with. Does the HARP “one late in last year, no late in last 6 months” rule apply to the property you’re trying to get the HARP on, or are you ruled out based on a different (other) property you own as well, even though you’re not applying for HARP on the other property?? Or is it simply B of A that doesn’t want to do it? Any advise is greatly appreciated.
Reply
David
| #
B of A doesn’t want to do it. Going to “your” bank doesn’t always warrant you the best loans. Find a smaller broker. They tend to know the business’ ins and outs better and know how to work around situations.
Reply
Nancy
| #
We financed in April 2009, our loan wasn’t sold to Fannie Mae until July 2009 which means we Don’t Qualify!!! We’ve tried and because of that little issue we cannot take advantage. Had the house appraised and it appraised $34,000 less than in 2009!!!!!!!!!!!!
Reply
Lisa
| #
I purchased my home after 06/01/09. Are there any programs that can help me?
Reply
brandon
| #
Is the HARP program available to me if i used CalVet to purchase my home in 2008. Most of the the programs I have heard of dont work with CalVet mortgages. So If anyone knows of any, that info would be greatly appreciated.
Reply
Andres
| #
If I refinanced in May 20, 2009 (this was the closing date) do I qualify for HARP? I’m not sure when Fannie Mae actually received the new mortgage (probably after June 1, 2009. Does it “count” that I closed before June 1? How do I know when the mortgage “hit the books”?
Cheers, Andres
Reply
Nancy booker
| #
Nothing in the terms of ur deed changes whenever ur Loan is transfered
Reply
Kirk Thompson
| #
The date you closed on your loan has no bearing. Your loan had to be sold or transferred to Fannie or Freddie prior to June 1st, 2009. Usually your closing date has to be 2-3 months prior because a borrower needs to make a payment or two on time before the loan can be sold.
Reply
Eric
| #
You can go online to Fannie or Freddie’s website to confirm you are serviced by one of them. The other step you can do to confirm is by calling to confirm they have your loan and its within the date to qualify.
Reply
Linda VanConant
| #
If you qualify for the Harp loan, and contact a bank that processed HARP loans can they require that you are a member for 6 months before writing the loan?
Reply
DC Terry, Sr
| #
Hi Linda,
The banks can Customize their guidelines to match their desires.
Reply
C. Wingfield
| #
What can I do? I have an elderly mother and disabled brother. Despite having 2 Master Degrees I have not been able to secure a job over the past four years. My mortgage holder is GMAC but the server is a group called IMPAC who will not help. We went through NACA & Florida’s Hardest Hit, deplected all savings and 401k what can we do next??? Please advise if possible. Thanks for your time.
Reply
Denise
| #
I just talked to a Mortgage lender about harp, He told me since i have PMI on my loan that i do not qualify for the harp program. I have talked to several lenders over the last 2 days and nobody has told me this.Is this the truth? Thank you
Reply
Laith
| #
One a mortgage company seem to be B.S.ing you get a lawer yes that’s what I did according to the harp or Obama program for home owners what they told you is not true but again I don’t know all the facts about your loan but you can email me if you like to let me know more
Reply
DM
| #
Just a note from someone in the industry.
IF YOU FEEL UNCOMFORTABLE WITH A LENDER, SHOP AROUND.
SHOP, SHOP, SHOP!!! Do not feel obligated to stay with any lender. If they make you feel uncomfortable, move on to another.
Reply
ryan
| #
fannie loans any type of mi unlimited ltv not an issue here
Reply
Brad
| #
Started HARP refi with GMAC “Ally” on Apr 2nd. They told me on Apr 24th they were just waiting for MI to be transferred to new loan. Since then they have extended my rate twice and now my settlement charges have gone up. I have shopped some but it appears that the charges are higher and there is an out-of pocket appraisal??? This stalling feels like more fraud from the big banks. Oh and conveniently will only communicate electronically now.
Reply