Mortgage Industry News & Advice

HARP 2 Refinance: A Quick Guide

Buzz is growing for the “Home Affordable Refinance Program” revisions, referred to as HARP 2.0. And for good reason.

Homeowners I speak with every day complain – rightfully – that they ‘have done the right thing’ in being responsible and paying their mortgage on time. And they have, even when neighbors have walked away from homes that are under water. All these homeowners want is to be able to refinance, take advantage of these lower rates, keep enjoying their homes.

Is that too much to ask?

No.

And soon many of those homeowners will get that chance. Check off these qualifiers to see if you qualify for the new and improved HARP 2 program:

  • Is your loan owned by Fannie Mae or Freddie Mac? Check Fannie Mae Lookup here, then check Freddie Mac Lookup here. And remember, Fannie and Freddie do not “service” loans. So who you send your monthly payment to is not important here.
  • Was your current loan closed prior to May 31, 2009? To be HARP 2 eligible, that is the cutoff date.
  • Is your mortgage current for the past 12 months?  You can only have 1 30 day late payment in the past year, and no late payments in the past 6 months to be eligible.
If you meet these criteria, then you are well on your way to being HARP-eligible.
In most cases an appraisal will not be required for this refinance, so the amount you are under water does not matter nor count.  The amount you are underwater will not matter. (Yeah!)
However, everything else about this loan is the same as qualifying for a conventional loan – employment, income and credit are all considered and must meet the criteria. (Ahh, the catch…)
The program will go live on March 1, 2012.  Fannie Mae says it will take them that long to update their systems to be able to accept these loans.
And, here’s where you can go more in depth on Atlanta HARP 2 refinance.
As always, if you would like to contact me directly about loans in the Southeast, you can call 1-800-MY-LOANS (1-800-695-6267).

About the Author

About the Author: Jim Duffy is an Atlanta Mortgage Lender. He specializes in Frist-Time Home Buyer loans, FHA Streamline, USDA Rural Home Loans, and VA 100% Financing. More at my Atlanta FHA Loans Page. Oh, and visit the site to pick up your Georgia First Time Home Buyer Handbook - just put in your email address, and your copy of the book will be sent right to you. .

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