As is the case with many across the country, a good number of Lakeland, Florida homeowners are facing situations where they’d like to refinance their homes, yet owe more than they are presently worth.
The Federal Housing Finance Agency has extended the government’s Home Affordable Refinance Program by 12 months.
HARP’s new end date is June 30, 2011.
Originally known as Making Home Affordable, HARP aims to help Florida homeowners refinance their mortgage who may otherwise be ineligible because of falling home values.
There are 4 basic HARP criteria every borrower must meet:
- The existing home loan must be guaranteed by Fannie Mae or Freddie Mac.
- Your home must be a 1- to 4-unit property
- You must have a perfect mortgage payment history going back 12 months. No 30-day lates allowed.
- Your first mortgage balance must be 125% or less of your home’s market value
If you’re not sure whether Fannie Mae or Freddie Mac back your mortgage, you can look it up. Fannie’s website is http://www.fanniemae.com/loanlookup; Freddie’s is http://freddiemac.com/mymortgage. If you don’t locate your loan on either website, your mortgage is backed by a third-party and is not HARP-eligible.
For homeowners that meet HARP’s criteria, there are some underwriting details of which to be aware.
First, if your original mortgage does not require mortgage insurance, your HARP mortgage will not require it, either — regardless of your new loan-to-value.
Second, all HARP refinances require income verification. It doesn’t matter if your original mortgage was a stated income or no income verification loan. You should expect to produce 1040s and W-2s for your HARP refinance and asset statements, too.
And, lastly, second (and third) mortgages may not be “rolled in” to a new first mortgage loan balance. Junior lien holders must agree to remain in a junior lien position, regardless of combined loan-to-value.
There is a thorough HARP FAQ section on the government’s website, but it’s for general questions only. For specific Home Affordable Refinance Program information, first make sure you’re program-eligible, then pick up the phone to call your loan officer.
HARP is complex enough that you’ll want to talk with a human before taking a proper next step.
I hope you found this post useful! As always, if you or anyone you know is in need of a local Florida mortgage loan originator, I’m your guy. Call me at 888-859-7418 or apply online for your Florida mortgage. We’ll keep you posted and let you know when it’s time to pull the trigger!
No related posts.
Very informative post about the HARP program, here are a few additional notes to add:
Subordinating the 2nd mortgage, or junior lien, is your best option since some of the 2nd lien holder will even waive their normal fee. I recently closed one that Well Fargo waived their normal subordination fee, saving my client $100.
Second, some lenders allow for an appraisal waiver on the HARP program, saving borrowers another $300-500 that they would typically pay for the appraisal.
James Mucci – Michigan refinancing