The long awaited update to the Home Affordable Refinance Program (HARP) is finally here. Yesterday for the first time we were able to see some of the loan scenarios Fannie Mae and Freddie Mac’s new approval engine would accept and so far the results are promising.
Sammamish Mortgage is now accepting applications for the new version of the refinance program. You can apply at www.sammamishmortgage.com or call 425-401-8787 to speak with one of our experienced loan professionals. Below is an outline of the key points for HARP 2.0. Although many lenders will not be participating fully if at all in the new program we already have a few lenders that are accepting loans that meet the program guidelines.
- Your existing 1st mortgage must be owned by Fannie Mae or Freddie Mac. Even if you make payments to a different lender you still likely have a Fannie Mae or Freddie Mac loan as the majority of loans done in the US are owned by either Fannie or Freddie. Visit fanniemae.com or freddiemac.com and enter your information into their lookup tool to find out. You can also fill out our online application and we can take it from there. If your loan does not show up on either look up you still may be ok. Contact your current lender and ask them if your loan is owned by either Fannie Mae or Freddie Mac as the look up is not 100% accurate.
- Your current mortgage must have been delivered to Fannie Mae or Freddie Mac prior to May 31, 2009. Generally lenders take a month or two after your loan closes to deliver the loan to one of the two agencies.
- You must be current on your payments for at least the last 12 months.
- The main benefits of this program include no loan to value restrictions. Even if you owe more than your home is worth you still may qualify.
- Higher debt to income ratios and credit scores are expected to be allowed. We have already received an automated approval on one file that had debt to income ratio much higher than what would have been accepted under normal lending guidelines.
- Appraisals may not be required on every file.