NOTE: this page will continue to be updated as I we receive guidelines from the lenders we work with and as the additional enhancements are released.
If your mortgage is securitized by Fannie Mae, the lenders I’m working with offer the DU Refi Plus, and currently have these guidelines based on this phase of HARP 2.0:
- NO Maximum LTV. No maximum total loan to value (second mortgages). However, any refinance with an existing second mortgage is only possible if the second mortgage (or HELOC) agrees to be subordinated. ARMS have a maximum LTV of 105%.
- Appraisal waivers have already been offered by Fannie Mae on certain homes based on data they have. Appraisal waviers are available for single family properties, including owner occupied, second homes and investment property. Update – Fannie Mae IS issuing more appraisal waivers for HARP refi’s. Not all HARP refi’s willl automatically receive an appraisal waiver.
- Property types allowed are owner occupied, second home or investment properties. Update – above mentioned property types (single family) are eligible for appraisal waivers.
- Loan amounts are limited to current conforming loan limits. In the greater Seattle area, the high balance conforming loan limit for a 1-unit home is $506,000. Click the link to left for current conforming loan limits.
- Minimum credit score of 620. NOTE: technically there is no minimum credit score for DU Refi Plus, underwriting overlays will most likely require this. If banks and lenders allow less than 620, I will update this post.
- One 30 day mortgage late may be allowed in the last 12 months provided it did not occur within the previous 6 months.
- No limit to properties financed.
- Private mortgage insurance companies are being more flexible. Qualified mortgages with existing pmi may qualify for a HARP refi. Even Lender Paid Mortgage Insurance (LPMI) is allowed by Fannie Mae during this new phase.
- Improved pricing for owner occupied and second homes for LTVs greater than 80%. Freddie and Fannie have adds or hits (delivery fees) that are factored into how your mortgage rate is priced. If you opt to refinance into a mortgage with an amortized term of 20 years or lower, the delivery fees are reduced to zero. Effective with the March update If your amortization is less than 20 years, the deliver fee is reduced to 0.75% for owner occupied homes.
I am required to have the language below if I am soliciting your Home Affordable Refi for your home in Washington…and yes, I would love to help you with your HARP (or any) refinance:
Freddie Mac and Fannie Mae have adopted changes to the Home Affordable Refinance program (HARP) and you may be eligible to take advantages of these changes. If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP. You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites: www.freddiemac.com/mymortgage or http://www.fanniemae.com/loanlookup/.