Originations: HARP Underwater Refi Qualifying Checklist & Guidance

Originations: HARP Underwater Refi Qualifying Checklist & Guidance

Today’s Originations linkfest is focused on the Home low-cost Refinance Program (HARP) that allows homeowners that are underwater refinance. HARP ended up being set to expire at the conclusion of the 12 months and has now now been expanded to operate through the termination of 2015. Pay attention that is particular links by other home loan banker Dan Green whom writes TheMortgageReports blog—he’s throughout the latest HARP happenings. Additionally listed here are the 5 Key Questions To Ask Your Loan Officer About HARP Refis, an item delivered to me personally by another other mortgage banker Craig Reynolds.

HARP INFORMATION UPDATES – Latest Stats on HARP Refi amount (Christina Mlynski, HousingWire)

– Fannie Mae Regulator Extends HARP Refi Program Through 2015 (Clea Benson, Bloomberg)

HARP QUALIFYING TIPS – HARP Qualifying Checklist – fast guide variation (TheBasisPoint)

– the HARP that is complete Eligibility (Dan Green, TheMortgageReports)

– HARP 3: Proposed HARP Upgrades & whom May Qualify (Dan Green, TheMortgageReports)


Have you been considering HARP refinancing, but are perhaps not certain that you’re qualified to receive this mortgage system? Have actually you attempted to be eligible for the HARP system without success? When your response is “yes” to either of the concerns, it is necessary which you not just keep yourself well-informed concerning the Home low-cost Refinance Program (HARP) certification tips, but which you find financing officer (LO) that has a total knowledge of these tips.

HARP was made for property owners who’ve were able to remain on top of the home loan repayments, but who will be underwater with home financing financial obligation this is certainly more than exactly what their property is currently worth. With regards to the situation, the HARP home loan program may function as the refinance option which will help save your self these property owners – home owners as if you – from New Mexico direct payday lender drowning.

Having said that, to benefit from a HARP loan, you’ll want to qualify. To find out your eligibility and also to make sure you need to ask your LO these 5 very important HARP refinancing questions that you have the right loan officer for the job:

(1) Does HARP refinancing connect with condos or leasing home? Yes, you can use it to refinance either a flat or property that is rental. Look for a loan provider or a participating bank in the national nation that will get this take place. Usually do not be satisfied with a loan provider who cannot or will maybe not refinance these properties.

(2) do you want to accept home loan insurance transfers? Your loan officer should accept mortgage insurance coverage transfers, whether or otherwise not or otherwise not you’ve got lender paid home loan insurance coverage (LPMI) or mortgage that is private (PMI). If they are maybe maybe not accepted, find a LO who can accept mortgage insurance coverage transfers.

(3) are you experiencing loan-to-value financing limitations? Some lenders follow aged guidelines and implement a loan-to-value ratio (LTV) limitation of 105%. Nevertheless, the LTV laws for the HARP system have actually changed. You will find only LTV limitations on loans which are more than the usual 30 term and on adjustable rate mortgages year. Apart from that, so long you are not subject to limitations as you have a new fixed rate mortgage loan that is less than or no longer than a 30 year term. Consequently, if for example the LTV is with in more than 105%, select a lender who since access to raised LTVs.

(4) Does my present home loan make me personally a candidate that is eligible HARP refinancing? To look for the response to this concern, your loan officer ought to know that to be able to qualify, you need to meet the following criteria:

– Your home loan must certanly be fully guaranteed or owned by Fannie Mae or Freddie Mac.

– you really must be present on the mortgage repayments the past year that is full12 months).

– you mustn’t have formerly refinanced beneath the Residence low-cost Refinance Program, unless it absolutely was a HARP loan that happened between March and will of 2009 and had been refinanced by Fannie Mae.

– at the moment, your home loan will need to have a LTV that surpasses 80%

– Your mortgage should have been offered to Freddie Mac or Fannie Mae on or ahead of might 31, 2009.

(5) Is a assessment required? an assessment might not be necessary since you may be eligible for an assessment waiver. Select an LO whom understands the procedure that is proper entering your details with the Freddie Mac or Fannie Mae automated underwriting systems. This method will figure out in the event that you be eligible for an appraisal waiver and it’s also a thing that your LO must do.

Maintain the above five concerns at heart once you check out that loan officer to ascertain your HARP refinancing eligibility. Not absolutely all lenders have actually the appropriate knowledge of HARP certification directions. In reality, there has been instances when loan providers have actually created underwriting overlays that caused the home owner become rejected, whenever in most cases the home owner came across the program’s directions.

Therefore, when you’re equipped utilizing the right information, you’ll find an expert who has got the mandatory HARP system and you will be in a position to work in your absolute best passions.

Craig Reynolds is a mortgage that is seasoned veteran with more than 15 years expertise in managing and loan consulting. More information here. ___ Follow The Writers

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