In November 2011, President Obama announced the existence of a HARP 2.0 product that was going to help more and more underwater home owners refinance into a lower interest rate loan. 

The release date was supposed to be in December 2011, but unfortunately no lenders would offer it.  Finally lenders will start offering this product..  I can offer Freddie Mac Harp 2.0 loans on Monday March 12th, and Fannie Mae Harp 2.0 loans on Monday, March 19th.  Here are the main details of HARP 2.0: 

HARP 2.0:

1.)  You must be in a FANNIE MAE or FREDDIE MAC loan taken out before May of 2009.  You can check if you are here:

FANNIE MAE: http://www.fanniemae.com/loanlookup/


FREDDIE MAC: https://ww3.freddiemac.com/corporate/

2.)  The LTV allowable was originally announced as unlimited, but it appears lenders are afraid to offer that at this point.  I don’t have all the details yet, but I think the Loan to Value limit will either be 150% or 125%, and unlimited combined loan to value when subordinating a second.  HARP 2.0 is only for 1st Mortgages. 

3.)  Most HARP 2.0 loans will not need an appraisal.

4.)  Allows 1 30 day late in the past 12 months – as long as it is not within the most recent 6 months.

5.)  Before, you had to have the same occupancy as when you took out the original loan.  This has now been lifted.  For example, you could not complete a HARP loan on an original primary residence that is now a rental.  Now you can.

6.)  Fannie Mae is removing the waiting periods for short sales and foreclosures for this product.

This program will help the underwater homeowners that have stayed in their home and maintained their payment, to lower their interest rate to the current market levels.  This is a great product, and I think this is a step in the right direction for our industry.

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HARP 2.0 – Is it Finally Here?