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 Freddie Mac, the lenders I’m working with offer the Home Affordable Streamline Refi – Open Access, and currently have these guidelines based on this phase of HARP 2.0:
- NOTE Date of mortgage being refinanced needs to be prior to June 1, 2009.
- No Maximum LTV. ARMS have a max LTV of 105%. UPDATE 2/15/2013: we once again have unlimited loan to values (except for ARMs) as long as the low-mid credit score is 680 or higher – subject to LP/Freddie Mac approval.
- Freddie Mac may waive an appraisal in lieu of their home valuation program (HVE) for 1 and 2 unit properties. We learn what Freddie’s estimated value is of the property once the loan is ran through the automated underwriting system. If your LTV is not low enough for this current phase of HARP, we can hold your refinance in process until the next expanded phase is available.
- Loan amounts are allowed to be increased no more than $5,000 above the principal balance or 4% of the loan amount for loan to values over 80%. Loan amounts will be restricted to current conforming loan limits. In the greater Seattle area, the high balance conforming loan limit for a 1-unit home is $506,000.
- Eligible properties include 1-4 unit owner occupied, 1 unit second home and 1-4 unit investment properties.
- Minimum credit score of 620.
- One 30 day mortgage late may be allowed in the last 12 months provided it did not occur within the previous 6 months.
- Private Mortgage Insurance: If the existing mortgage has mortgage insurance, then the same mortgage insurance coverage percentage must be maintained and transferred to the new HARP 2.0 mortgage. NOTE: Some lenders are not accepting HARP 2.0 loans if there is existing PMI or LPMI despite Freddie Mac guidelines.
- 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. If your amortization is greater than 20 years, the delivery fee is reduced to 0.75%. Investment properties have delivery fees capped at 2.00%.
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/