Here's Home Affordable Refinance Program Help

Love your home?  Want to stay?  Retained value since purchasing?

Owe more than it’s worth?  

Fannie Mae/Freddie Mac released HARP 2.0 “Home Affordable Refinance Program" guidelines! 

Basically, the Government is stepping in to help Home Owners that are current on their payments, but upside down on their Mortgage Loans.  In other words, you may be able to get a lower rate and payment if you owe more than “it’s worth”. 

Eligible Loans include refinance transactions that the Original Mortgage is owned by Fannie Mae or Freddie Mac prior to May 31, 2009.  Eligible Properties are: Primary, Vacation and Investment homes.  Contact me for specific details.

Manufactured (Single Wide/Double Wide), Condotels and Co-ops are not eligible.

Home Owners can find out if Fannie owns their loan by using the Fannie Mae Loan Lookup tool at:  http://loanlookup.fanniemae.com/loanlookup/ 

Or if Freddie own their loan by using the Freddie Mac Loan Lookup tool at:  https://ww3.freddiemac.com/corporate/

You must be current on your 1^st Mortgage Payment and not had a 60 day delinquency on your Mortgage Payment in the past 12 months.  Both Fannie and Freddie have minimum Credit/FICO Scores.  Both will allow removal of a Borrower on a Joint Loan. Contact me for special Guidelines on “Removal of a Borrower”.

There is no maximum Loan-to-Value (LTV) on these loans.  But, if you have a 2^nd Mortgage, they may not allow the refinance.  Please check with your 2^nd Loan Lien Holder to see if they will Subordinate their Loan (stay in 2^nd Place Lien Position).  If your 2^nd Mortgage will not subordinate, then you cannot refinance the 1^st.  New 2^nd Liens are not allowed on these Programs.

Value is determined by a “Home Value Explorer” (HVE). If the requirements are met and Lender gets the “Approval” or “Property Inspection Waiver” (PIW) response, then no Appraisal is needed.  If the response is not “approved”, then Fannie and Freddie require 2 Appraisals be completed for valuation.  Remember, there is no “maximum Loan-to-Value” on the HARP Loans, but Lenders do need to obtain a value for Fannie and Freddie.

Fannie andFreddie both require a “Net Tangible Benefit” for the Borrower to take advantage of these Special HARP Loans:

• Lower Interest Rate
• Lower Monthly Principle/Interest Payment
• Shorter Loan Term (i.e.: refinance into a 15 yr loan)
• More Stable Loan (i.e.: refinance an ARM or Balloon into a Fixed Loan)

If you have Mortgage Insurance currently, your Carrier will need to Transfer their Mortgage Insurance Certificate to your new Loan.  If you do not have MI, you will not need it on your new HARP Loan.

Guidelines can certainly be confusing and difficult to get thru.  As a Mortgage Professional, I will do my best to walk you thru all specific information so that you have a clear understanding of the process.

If you have an FHA Loan, there is also a Special Refinance Program called “FHA Streamline” that can help you with a lower rate and payment.  Please contact me for Program details.

As always, my goal is to provide the best service and ongoing, updated information on relevant Mortgage and related financial interests.  Please call me today to see what I can do for you.

For all your Mortgage needs… to BUY or REFI.

Steven Goldman

763.202.8145 direct

763.746.9921 office

SGoldman@WaterstoneMortgage.com

www.StevenGoldmanLoans.com