New HARP 2 Streamlined Application Rules

Freddie Mac and Fannie Mae have adopted changes to the Home Affordable Refinance Program (HARP), and you may be eligible to take advantage of these changes.

There is a new refinance program that went into effect in early Jan 2012 that allows underwater homeowners the ability to refinance into a lower interest rate, regardless of their Loan-to-Value (LTV).

Referred to as HARP 2.0, DU Refi Plus and the Obama Refinance Plan, the Home Affordable Refinance Program is a federal program under Making Home Affordable that is intended to help 4-7 million responsible homeowners lower their mortgage rates.

Below is a list of questions to help determine if you are potentially eligible for a HARP refinance:

  • Is your home loan owned or guaranteed by Fannie Mae or Freddie Mac?
  • Was your loan sold to Fannie Mae or Freddie Mac before May 31, 2009?
  • Are you current on your mortgage payments?
  • Do you owe more than your home is worth, or is there minimal equity in your home?
  • Have you made all of your mortgage payments on time in the last 6 months?
  • Streamlined application process: Borrowers will apply through a streamlined process designed to make it simpler and less expensive for borrowers and lenders to refinance. Borrowers will not be required to submit a new appraisal or tax return. To determine a borrower’s eligibility, a lender need only confirm that the borrower is employed. (Those who are not employed may still be eligible if they meet the other requirements and present limited credit risk. However, a lender will need to perform a full underwriting of these borrowers to determine whether they are a good fit for the program.)

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