LET IT LOAN, LET IT LOAN, LET IT LOAN!!

Of course, that is a satire of the holiday song "Let it Snow! Let it Snow! Let it Snow!"  My jubilant rant regarding letting it loan is because the Homeownership Affordability Refinance Program (HARP) for mortgage holders has opened up a world of opportunities for those homeowners underwater.  

In the first HARP program that came out in 2009, borrowers generally still had to document income and the loan to value( the loan amount owed in proportion to their value of home) limits were anywhere from 105% loan to value( if customer was refinancing to another company)  up to 125% loan to value if refinancing with same company.

Now this second HARP program has expanded to allow up to 125% loan to value for those refinancing to a diffrerent mortgage company and UNLIMITED loan to value(for some lenders) if refinancing with the same lender.

AND, the beauty:   There are not the normal risk based adjustments to interest rate on these HARP loans compared with the regular conventional refinances.

Now the homeowner must have a Fannie Mae or Freddie Mac loan( one can Google "Fannie Mae Own Your Home" or "Freddie Mac Own Your Home" to check the websites that will tell you if your loan is Fannie or Freddie owned).

If you meet that test, you don't have a second mortgage(or the second mortgage company is willing to subordinate), you are a step closer.

Now, if you have made 11 of the last 12 mortgage payments on time and are current now, REGARDLESS of your debt to income ratio, you have met every test now to qualify for this HARP loan except one more thing:

Your current loan must have been taken out before June 30, 2009.  In other words, if one did a HARP loan before, they cannot do another one. 

If you have met every test, contact your lender.  This is a fantastic way to help homeowners get ridiculously low rates in the high 3% range even if they are way, way upside down.

Yes, I know this may not help realtors directly, but indirectly, with borrowers saving money and having more disposable income, they may be inclined to start looking at investment properties or possibly, after refinancing for a while at the lower payments, looking to sell and upgrade to a bigger home at these ridiculously low rates.

Now is the time.  Let it loan, let it loan, let it loan!!