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HARP2 and Condominiums

By
Managing Real Estate Broker with arrivva, inc. CABre#0157615 NMLS#133975

A question has been asked if condos are included in theHARP2 program.

The simple answer is YES! The best answer is that not only are they allowed but you do not have to go through the approval process.

Why is that good news? That’s because under standard Fannie Mae guidelines a condo would have to meet certain criteria for presolds, owner occupied percentages, number of delinquent homeowners and specificity as to the number of units owned by a specific person or entity.

As such, Fannie and Freddie already own your loan, you’re paying on time and all you’re doing is getting a lower rate: making the payments easier, why should they care?

This lack of approval also happens when you are getting a mortgage through Fannie Mae under their Homepath program.

I did one recently in a building that has 85% investors and it went through no problem. Why, because Fannie Mae wants to sell off their inventory and they are taking the risk.

But, if you are a normal borrower trying to go through the “normal” process, too bad! Is this fair? I say not, but I don’t have to deal with Fannie Mae’s investors and government oversight.

Have questions or to see if you personally qualify? Contact Fred Glick at 215-852-4469 or email him fred@usloans.com

Posted by

Fred Glick

CEO, Broker/Owner, Multi-state Licensed Real Estate Brokerage U S Spaces, Inc./Arrivva
CEO, NMLS Certified Mortgage Brokerage U S Loans Mortgage, Inc. NMLS 51022/133975

215.238.9400 East Coast
310.741.7169 West Coast
http://fredglick.com

Licensed Real Estate Broker PA- U S Spaces, Inc. 2158298850, CA Dept of Real Estate BRE#01507615 , NJ Licensed Real Estate Salesperson

Steven Cook
No Longer Processing Mortgages. - Tacoma, WA

Fred -- thankyou for helping those who may not be as adept at wading through all the documentation to figure out what it means. 

Feb 16, 2012 07:42 AM