Good morning! I hope your week is off to a bang up start and that you had a great weekend!
I wanted to update you on what I've learned about the government's massive new refinancing initiative known as HARP 2.0. To refresh your memory, HARP 2.0 is the plan to allow homeowners who are upside down on their mortages the ability to refinance.
As with anything here are the caveats:
1) Your loan must be owned by either Fannie Mae or Freddie Mac and purchased before May 31, 2009. If your loan isn't owned by the two big entities you're out of luck for now. To find out if your loan is owned by either Fannie or Freddie, you can Google "loan look up" and see.
2) If your loan is owned by Fannie or Freddie, you can then submit an application. As with anything your documentation will be reviewed. You must be current on your mortgage, for example, and your credit will be checked. You also must qualify through whatever underwriting system is used by your loan officer.
3) You could be way upside down (I've seen loan-to-values in excess of 125%) and qualify. Plus, there may not be an appraisal although I have seen some required (think condo's, for example).
4) You may be able to refinance all your residences. If you have investment properties these may qualify as well.
5) Interest rates for these types of programs are generally higher. Make sure you work with a loan officer who knows what they're doing. This type of loan requires a lot of research and knowledge to get done.
Word on the street is lenders are busy taking applications and inquiries. My thoughts? Perhaps 10-20% of the underwater market will be able to refinance. In an earlier blog I talked about HARP 2.0 saying the devil is in the details. Although I expect to help several homeowners who are upside down refinance into lower rates, there will also be quite a few I cannot. Stay tuned as I learn more. And have a great day!
Contact me if I can be of assistance! Many thanks!
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