No, you cannot use the HARP 2. Ginnie Mae is associated with FHA mortgages — not conventional ones. HARP 2 is for conventional mortgages only. There are very few instances in which a HARP applicant will be precluded from shopping for the best rate. Except in rare cases, no. With HARP, you can work with any participating lender in the country. And there are a lot of them. Yes, you can shorten your loan term via HARP. You must still qualify for the mortgage based on payments, though.
Be sure to ask. No, your private mortgage insurance payments will not increase. You can refinance via HARP 2. Yes, you can refinance your mortgage via HARP 2. There are banks closing HARP loans with lender-paid mortgage insurance attached. Your loan officer will know what to do. Just make sure you disclose that your mortgage has LPMI at the time of application so your loan officer knows what to do.
Otherwise, your loan could be delayed in processing. To find out if your mortgage has lender-paid mortgage insurance LPMI , locate your loan paperwork from closing. There should be a clear disclosure that states that your mortgage features LPMI, and the terms should be clearly labeled for you.
If it did, look to see if you are paying monthly mortgage insurance. There are different types of private mortgage insurance and not all kinds are paid monthly. One such example is lender-paid mortgage insurance for which your lender pays PMI on your behalf each month.
If your bank says no, ask another bank and you may get a different answer. The key is that the new loan has mortgage insurance coverage at least equal to the mortgage insurance coverage on your current mortgage.
There are plenty that of banks that can help you. Only rate-and-term refinances are allowable. The loan must meet typical program eligibility standards.
Yes, condominiums can be financed on the HARP refinance program. Warrantability standards still apply. Condominiums can be financed on the HARP refinance program. If your current lender is unable or unwilling to help, remember that you can take your HARP loan to any participating bank in the country. Other banks may know what to do with condos. No, you cannot consolidate multiple mortgages with the HARP refinance program.
No, the Home Affordable Refinance Program is for first mortgages only. Second mortgages cannot be refinanced via HARP, nor can they be consolidated into a first mortgage. Second liens are meant to subordinate. Just be sure to mention your second mortgage at the time of application so your lender knows to order the subordination for you. With the HARP refinance program, second liens are meant to subordinate.
Second lien holders know this, however, not all second lien holders will agree to it. This is against the spirit of the program, but second lien holders are within their rights to deny the refinance.
Second mortgages are ignored as part of HARP. Second mortgages are a non-factor in HARP 2. You cannot combine your two mortgages, however. You can only refinance your first mortgage. Only your first mortgage is eligible for Making Home Affordable.
If your current bank is not setup for HARP, find a new lender. HARP is available through any participating bank and there are a lot of them. Free, no-obligation HARP quotes are available online, too. Yes, mortgage balances can be increased to cover closing costs in addition to other monies due at closing such as escrow reserves, accrued daily interest, and a small amount of cash.
In no cases may loan sizes exceed the local conforming loan limits, however. In most U. HARP mortgages are underwritten like most other mortgages. HARP does require verification of income, but some lenders may require it anyway. If you cannot or will not verify income with your lender, you may show 12 months of PITI in reserves as a substitute for actual verifiable income.
This means that people who are employed and have good credit are able to take advantage of low interest rates, even if their home values have declined. The Fannie Mae and Freddie Mac programs have virtually identical eligibility requirements and features, with slight differences in minimum LTV ratios for multi-unit homes. With these programs, he says, you may have an easier time qualifying and benefit from the simplified documentation, but the rate may not be more competitive than other lenders.
With this option, the minimum LTV ratio on a one-unit home is The documentation standards around verifying income, employment, and assets are also less stringent than a conventional refinance. This is a plus, because you could refinance only once through HARP. Eligibility Requirements You must have an existing Fannie Mae mortgage note on or after October 1, You can look up if you have a Fannie Mae loan using this tool.
You must have at least a month gap between the mortgage note and the high-LTV refinance note. You must be current on your payments, with no day delinquencies within the past six months and no more than one day delinquency no greater than 30 days within the past 12 months. Freddie Mac Enhanced Relief Refinance Similar to the Fannie Mae high loan-to-value refinance option, the Freddie Mac Enhanced Relief Refinance program benefits homeowners who have little equity in their home but want to refinance to more competitive rates.
You can use this Freddie Mac program to refinance your mortgage as many times as you want, whereas with HARP, you were limited to only one time. Stay in the know with our latest home stories, mortgage rates and refinance tips. I would like to subscribe to the NextAdvisor newsletter. See privacy policy. The Marijuana Industry Is Booming. Mortgages Rates Dropped to 3. Before you go, sign up for our newsletter to get NextAdvisor in your inbox.
Home Equity. Student Loans. Some HARP approved lenders, however, will set tighter guidelines, including a minimum credit score for homeowners who pursue a HARP refinance through them. Your property cannot be automatically deemed ineligible based on a minimum loan amount or outstanding loan balance.
However, the program applies only to conventional conforming loans. Your mortgaged property doesn't need to be your primary residence. You can also seek a HARP refinance for your second home as long as it's a one-unit residence, such as a single family residence or condominium unit.
You can also refinance one- to four-unit investment property. If you refinance into a fixed-rate mortgage, your new loan LTV ratio is not capped. But if your new loan is an adjustable rate mortgage, your LTV ratio may not run over percent. You can hold a first and second mortgage on your property and still be eligible for a refinance, provided the second mortgage holder agrees to remain in a junior lien position to the first mortgage holder. Keep in mind that even though the LTV ratio doesn't matter for HARP eligibility, some lenders limit the maximum allowable LTV ratio to percent as a way to minimize their underwriting risk.
You may see conflicting requirements and steps to apply for HARP. That is because the U. Follow these steps to start the HARP process. You must meet all five conditions to qualify for HARP.
Your HARP lender will typically ask for your most recent income tax return, property tax bills and pay stubs. Have on hand your current monthly mortgage statement, which provides information about your current loan principal, interest, homeowners insurance and property tax amounts. Also collect paperwork detailing account balances and payments on all of your debts, including any credit cards, student loans and car loans.
Your lender will request information about existing second mortgage or home equity lines of credit. A good summary of your recent income is your federal tax return, and some lenders ask to see your most recent return. With your pay stubs, bank statements, and tax return at the ready, call your mortgage servicer the company you make your home loan payments to and tell them you wish to discuss Home Affordable Refinance.
If you qualify, your servicer is required to offer a HARP refinance option. However, your servicer. Shop around, and switch lenders if you are offered a lower rate or lower costs. Use a refinance comparison calculator to help you find the best deal.
The federal government has made an effort to accelerate the HARP approval and closing process. For instance, the program has largely eliminated income verification. You can satisfy the income verification requirement by providing proof that you have at least 12 months of mortgage payments in reserve.
Each mortgage payment consists of the monthly amount due for principal, interest, real estate tax payments, property insurance and, if applicable, homeowners association or community dues.
HARP has reduced other documentation requirements. It no longer requires verification of large deposits that appear on a borrower's bank or other asset statements. It has eliminated the appraisal requirement as part of the approval process. In most cases, if an automated valuation model AVM exists for your property, a separate, new appraisal will be unnecessary. You can complete a Home Affordable Refinance Program loan with any participating mortgage lender, or your existing mortgage servicer.
It's smart to compare offers from different HARP lenders. The path of least resistance goes through your existing mortgage servicer, which is already familiar with your mortgage and financial situation. In some cases, however, your loan servicer may not staff the loan officers to bring you through the HARP refinance process.
Not all HARP lenders are created equal. Interest rates and loan terms will undoubtedly vary among lenders, so consider shopping around for the rate and term that best fit your goals. In this manner, treat your HARP refinance as you would a traditional refinance. Fees and costs will also vary among HARP lenders, so obtain estimates of refinance fees and closing costs from lenders you are considering.
You will quite likely shoulder the costs of application, processing and title search, so shopping around will net you the best deal. If your finances can handle it, you may want to consider refinancing into a loan shorter than a year term because HARP reduces certain risk-based fees for homeowners refinancing into shorter terms.
As you investigate the Home Affordable Refinance Program's requirements, you may come upon roadblocks that indicate the program may not be a great fit for you. You cannot use HARP for a cash-out refinance to pay-off other debts.
HARP refinances are meant to assist homeowners who are underwater on their mortgages, or close to it. HARP is not intended to help homeowners who are current on their mortgage payments to satisfy credit card debt or car loan payments. You typically can't avoid closing costs and fees in a HARP refinance.
Just as in a traditional refinance, your HARP lender will probably require that you pay the closing costs and fees at the time of the refinance closing date. These costs and fees can add up and take several years to recoup from the per-month savings resulting from a reduced interest rate and mortgage payment.
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