Help, I Must Refinance but I am Upside Down, can HARP help?

Mortgage and Lending with Supreme Lending (NMLS ID #2129) NMLS 557038

Help, I must Refinance, but I am upside down in my Las Vegas mortgage, can HARP help? 

Please visit for the most current and up to date information regarding the revised HARP guidelines.

(Revised 11/16/11 with new guidelines and effective dates)

Many Las Vegas residents continue to reach out to me for help.  The common question seems to be "I owe more than my home is worth, can I refinance?" or "Can I still refinance if I am upside down in my Home Loan?"  

The current answer is there IS help on the way!  As of October of 2011, there was an announcement regarding the government's HARP refinance that may do better at assisting Las Vegas homeowners that need to refinance their upside down mortgage.

As you may recall a couple of years ago.  The government announced the HARP refinance to help homeowners that were upside down up to 125% of their homes value.  The problem was, by that time in Las Vegas, most of us had blown past that 125% value mark, so we were stuck with no help!

Starting in January of 2012, Fannie Mae will remove their 125% maximum limit on refinances on some eligible properties and more properties in March.  They will also allow  up to 1 mortgage late in the past year as long as it was not within the last 6 months.  They will now allow you to add or remove borrowers in certain circumstances.  Great news for Las Vegas homeowners that are upside down and have a Fannie Mae loan.  The HARP refi can help!

Unfortunately, it does not look like Freddie Mac will be removing the 125% maximum limit.  They will now allow you to add or remove borrowers in certain circumstances as well.

What is the HARP Refinance?

The Home Affordable Refinance Program (HARP) is the program you have been hearing about in the news over the last couple of weeks and years.  

According to Fannie Mae, the primary expectation for HARP, is that refinancing will put responsible borrowers in a better position by reducing their monthly principal and interest payments or moving them from a more risky loan structure (such as an interest-only mortgage or a short-term ARM) to a more stable product (such as a fixed rate mortgage). 

The current qualifications for HARP refinance are very simple:

  • Your mortgage is owned or guaranteed by Fannie Mae or Freddie Mac
  • You have the ability to make the new payments
  • You have not been more than 30 days late on your payment within the last year (This will change to no more than 1x30 in the last year as long as it was not within the last 6 months)
  • Have a first mortgage not exceeding more than 125% of the homes current market value (This will be removed for some Las Vegas homeowners starting in January)

What about my current debt load or credit score?

While still important, your current debt load and or credit score are not as important in the HARP refinance as they are in a typical refinance.  So, elevated debt ratios and lower credit scores can still be considered.

What HARP guidelines are expected to change?

  • They may remove the limits on how far upside down you can be (Fannie Mae will remove the maximum limit, Freddie Mac will not)
  • They may allow more flexibility with the late payment guideline (This will change to no more than 1x30 in the last year as long as it was not within the last 6 months)

How do you know if Fannie or Freddie own your mortgage?  Use these look up tools:

·         Fannie Mae Loan Look Up Tool

·         Freddie Mac Loan Look Up Tool

So, I am upside down in my home and my loan IS eligible, now what ?

At this point, WJ Bradley is not able to originate the revised version of the HARP program, however starting in March of 2012 we will be able to.

So, Contact me right away!  

There is no point in waiting, let's get the information ready so when the guidelines come out, we are ready to move forward as quickly as possible.

I can be reached at 702-808-8328!

Provided by Rey Gallegos | Loan Officer | NMLS 557038
W.J. Bradley Mortgage Capital Corp. (NV License # 504)
C 702.808.8328 | O 702.800.5077 |
Copyright 2007 - 2011

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Rey Gallegos

FHA, VA, Home Loans Las Vegas, NV
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