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 underwater home owners to refinance. HARP ended up payday loans Massachusetts being set to expire at the conclusion with this and has now been expanded to run through the end of 2015 year. Pay attention that is particular links by other mortgage banker Dan Green whom writes TheMortgageReports blog—he’s all around the latest HARP happenings. Additionally here are the 5 Key Questions To Ask Your Loan Officer About HARP Refis, a bit provided for me personally by another other mortgage banker Craig Reynolds.

HARP NEWS UPDATES – Latest Stats on HARP Refi Volume (Christina Mlynski, HousingWire)

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

HARP QUALIFYING RECOMMENDATIONS – HARP Qualifying Checklist – fast guide Version (TheBasisPoint)

– The Whole HARP Eligibility Specifications (Dan Green, TheMortgageReports)

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


Have you been contemplating HARP refinancing, but they are perhaps perhaps not certain that you will be entitled to this mortgage program? Have actually you attempted to be eligible for the HARP system without success? In case the response is “yes” to either of those concerns, it’s important about the Home Affordable Refinance Program (HARP) qualification guidelines, but that you find a loan officer (LO) who has a complete understanding of these guidelines that you not only educate yourself.

HARP was made for property owners that have been able to remain on top of the home loan repayments, but who will be underwater with home financing debt that is more than just exactly what their property is currently worth. According to the situation, the HARP home loan system may end up being the refinance choice that can help save your self these property owners – property owners as you – from drowning.

Having said that, to make the most of a HARP loan, you will need to qualify. To find out your eligibility and also to make sure you have actually the best loan officer to do the job, you will need to pose a question to your LO these 5 extremely important HARP refinancing questions:

(1) Does HARP refinancing connect with condos or property that is rental? Yes, it can be utilized to refinance either an apartment or property that is rental. Find a loan provider or a participating bank in the national nation that may make this happen. Usually do not accept a lender who cannot or will perhaps not refinance these properties.

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

(3) Have you got loan-to-value financing limitations? Some lenders follow aged rules and implement a loan-to-value ratio (LTV) limitation of 105%. But, the LTV laws for the HARP system have actually changed. You can find only LTV limitations on loans which can be much longer when compared to a 30 12 months term and on adjustable price mortgages. 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. Therefore, in the event the LTV is with in more than 105%, choose 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 determine the reply to this concern, your loan officer ought to know that to be able to qualify, you have to meet the following criteria:

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

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

– you must certainly not have formerly refinanced beneath the Residence low-cost Refinance Program, unless it had been a HARP loan that happened between March that can of 2009 and had been refinanced by Fannie Mae.

– at the moment, your home loan should have a LTV that surpasses 80%

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

(5) is definitely a assessment required? an assessment is almost certainly not necessary as you might qualify for an assessment waiver. Choose an LO whom knows the procedure that is proper entering your details utilizing the Freddie Mac or Fannie Mae automated underwriting systems. This procedure should determine it is something that your LO should do if you qualify for an appraisal waiver and.

Keep consitently the above five questions at heart once you check out that loan officer to find out your HARP refinancing eligibility. Only a few loan providers have the understanding that is proper of certification guidelines. The homeowner met the program’s guidelines in fact, there have been cases where lenders have created underwriting overlays that caused the homeowner to be denied, when in actuality.

Hence, when you’re armed utilizing the right information, there is a specialist who may have the required HARP system and is going to be in a position to act in your very best passions.

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

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