What is Home Affordable Refinance Program or HARP 2.0?The easiest and no-cash out of pocket refinancing program of the government is here to help homeowners whose homes are underwater. So, if you think you are stuck in a house which is worth far less than what you are paying for then HARP is the thing for you.
HARP or the Home Affordable Refinancing Program was created by the Federal Housing Finance Agency to help homeowners who owe more than their houses are worth due to falling home values especially in hard-hit housing markets like California. Most homes here have lost more than 50% of their values, leaving homeowners ineligible for a traditional refinancing loan.
Through this program, the FHFA expects homeowners to enjoy the benefits of a more stable mortgage loan, possibly avoid foreclosure and may even help build up equity faster through all these attractive features; like it does not have mortgage insurance even if the property has negative equity, the appraisal and underwriting is eliminated making the refinance process faster and smoother. Also, it has a low interest rate, lower monthly mortgage and most of all it has no loan-to-value limit.
To take advantage of this incredible program, a homeowner’s loan must be backed by Fannie Mae or Freddie Mac and should have been securitized on or before May 31, 2009. This could be verified by clicking on https://www.knowyouroptions.com/loanlookup if you have a Fannie Mae loan or clicking on https://www.freddiemac.com/corporate/ for Freddie Mac.
Lastly, the mortgage payment of the property must be current and should not have more than one 30-day late payment in the past twelve months. If you think you qualify for the HARP 2.0, the best time to act is NOW and benefit from the current historical low rates. These rates will not be here for long, the real estate market is bouncing back and then foreclosures will decline making properties highly in demand, this would eventually drive the rates up making HARP no longer beneficial to qualified homeowners. Also, this program will end in December 31, 2013.
To ensure that you are getting the best refinance terms, apply for a HARP with Leaderscorp Financial and our mortgage professionals would gladly assist you. Even if your property is more than 105% underwater, we have a wide network of lenders that we can work with to accommodate your HARP loan without loan-to-value limitation.
QUALIFICATION TABLE:Who are qualified?
CURRENT MORTGAGE WITH FNMA OR FHLMC
A homeowner must first check his or her loan if it is owned by Fannie Mae or Freddie MacLOAN STARTED BEFORE 5-31-2009
LOAN STARTED BEFORE 5-31-2009
Endorsement of the loan must be on or before May 31, 2009
MORTGAGE MUST BE CURRENT
Mortgage payments must be current not more than 1 time 30 days late for the past 12 months
PRIMARY RESIDENCE, SECOND HOME & INVESTMENT
HARP will refinance primary residence property only
Who are qualified?
Desktop underwriting. This is for loans acquired through Fannie Mae.
FREDDIE MAC RELIEF REFINANCE – OPEN ACCESS
This is for Loans acquired through Freddie Mac.
FLOW PROCESSSTEP 1: BENEFIT BRIEFING CALL
A telephone call is initiated to find out whether our client will be purchasing new property or refinancing an existing mortgage.
Completing the application process to confirm client’s eligibility for the loan would be faster with better cooperation and accurate information from the client.
STEP 2: LOAN SAVER DIRECT PACKAGE
A package that will contain the loan application and the list of requirements is sent to the client for review and completion.
The client fills out the forms, and signs all the disclosures.
The client gathers all the documents necessary for the loan.
The client mails, faxes, or emails the documents to our loan processing team.
STEP 3: QUALIFICATION
Loan Saver Direct Underwriters reviews the application and all the documents submitted.
The Loan Officer discusses with the client the benefits gained from refinancing. He also sets the right expectations by disclosing all the loan details and fees involved.
If the client is agreeable to the terms, then we will commence with the next step of the loan process.
STEP 4: OPENING ESCROW AND LOAN PROCESS
Loan Saver Direct opens escrow and processes the loan.
An appraisal is requested by the lender, and the client is responsible for paying the cost involved, ranging between $450 to $475.
Final loan documents are released, and the client signs the loan documents with a notary.
STEP 5: CLOSING
The client brings funds to escrow if necessary.
The final closing package from escrow with the new loan terms and closing statement is provided to the client.