HARP - A Personal Thank YOU

By
Real Estate Agent with The Somers Team at KW Philadelphia

HARP - A Personal Thank You

 

As many may know, I am not a big fan of Government programs nor big banks.  However, one program that provides both HARP - REFI savingsrelief and immediate stimulus to the economy now is the HARP (Home Affordable Refinance Program) which allows both homeowners and investors to REFI their loans to take advantage of the low interest rates.   With a traditional REFI it can be very difficult with all of the cumbersome issues such as appraisals or if you own multiple properties.  HARP streamlines the process to allow the end goal to happen.

 

I just completed a HARP REFI on one of my investment properties where by lowering my interest rate, my monthly mortgage payment will go down from about $2,000 a month to $1,500 a month.  Woo hoo!  That extra $500 a month savings will be instant stimulus to the economy which is the main reason I am a huge proponent for this program as it provides direct relief to individuals who are doing the right thing (paying their mortgage on time). 

 

And I have one more HARP REFI in the pipeline where the monthly savings will be almost as much!  For me, that is some great savings!  Both loans were with Bank of America.  I contacted them directly to initiate the process.  Thus, if you have a potential loan that can qualify for HARP, the easiest and simplest way to get started is to contact your lender directly.

 

What are the qualifications for HARP?

  1. You must be able to make your mortgage payments moving forward.

  2. It doesn’t matter what you owe or how upside-down you are.

  3. You must have a fair credit score.

  4. Subject Property can be your owner occupied residence OR a rental property.

  5. Property can be a 1-4 unit property.

  6. Your Loan Must be owned by Fannie Mae or Freddie Mac

  7. Be on time with your mortgage payments for the last 6 months. You are allowed one 30 day late period in the previous months 7-12.

  8. Be employed for at least the last 12 months or, if Self-Employed, report sufficient income on your tax returns (No “Stated Income or No-Doc Loans”).

For more info, visit HARP REFI Program .

 

Do you have any personal experience with HARP or will you be looking into this now?

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
Pennsylvania Philadelphia County Philadelphia
Groups:
Realtors®
RE/MAX Active Rain Bloggers
The Lounge at Active Rain
The Ninety-ninth Percentile
Diary of a Realtor
Tags:
mortgages
real estate market
bank of america
refinance
harp

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Ambassador
1,704,110
Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

I also took advantage of this program a couple of months ago on my personal home. My savings is a whopping $900 a month, $500 of that is in interest. I contacted my lender, Wells Fargo, directly and the process only took three weeks and was all done through the mail with no closing costs. The savings are hard to beat.

Dec 22, 2012 05:44 AM #2
Ambassador
771,191
The Somers Team
The Somers Team at KW Philadelphia - Philadelphia, PA
Delivering Real Estate Happiness

Jane -  It is such a great opportunity for those homeowners and investors who are underwater on their properties.  A lot of the people who did 100 percent financing do not qualify though as most of those are not owned by Fannie Mae or Freddie Mac.

 

Tammie - Wowsa !  That is some great savings !  That is what I am talking about... instant and immediate stimulus to you, which is instant and immediate stimulus to the economy.  This is REAL stimulus unlike the majority of the Federal Govt stimulus programs which taxpayers rarely see nor realize.

 

Dec 22, 2012 05:59 AM #3
Rainmaker
618,476
Phyllis Lerner call 914.438.7556
William Raveis Legends Realty Group LLC - Tarrytown, NY
William Raveis Legends Realty Group

To bad it only applies to Fannie Mae and Freddie Mac owned mortgages... another half measure...

Dec 22, 2012 06:30 AM #5
Ambassador
771,191
The Somers Team
The Somers Team at KW Philadelphia - Philadelphia, PA
Delivering Real Estate Happiness

Erica - It would be impossible for me to have REFIed this property any other way Erica as I own too much real estate : )

Phyillis - It would be a huge boon to the economy if other loans could qualify for a program like this, even if it was purely for owner occupants.   There were so many houses purchased with 100 percent financing (subprime) where those folks are simply stuck.

Dec 22, 2012 06:35 AM #6
Rainmaker
1,558,194
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Cha-ching to you & yours! It's Xmas for sure at your house. It was just so eerie, I was just reading this a second before I logged into AR & I saw your post.  It's great someone has good news about this stuff for a change!  I'm passing this around then.

Dec 22, 2012 07:16 AM #7
Ambassador
771,191
The Somers Team
The Somers Team at KW Philadelphia - Philadelphia, PA
Delivering Real Estate Happiness

Lyn - How cool is that ?  Thanks for passing it around. 

Dec 22, 2012 08:43 AM #8
Rainmaker
1,317,601
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

I am glad to see that this program is of benefit to folks.  Thanks for sharing this information.

Dec 22, 2012 09:46 AM #9
Ambassador
1,604,182
Florida Tolbert Team Keller Williams Advantage
Keller Williams Advantage III Realty in Lake Nona - Orlando, FL
Keller Williams Land Division Specialist

COngrats on the very first success story I have heard this year for HARP.  I am trying to help a customer avoid short sale by guiding him thru HARP as well, but so far Chase has shot him down. 

Dec 22, 2012 10:16 AM #10
Rainmaker
2,601,661
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

I am really glad for your success in getting this achieved.  Over the past several years, I have sent a number of my friends and family to some of these programs, in hopes they would acquire the outcome you have.  For some it has been a blessing, for others - not so much.  But it is success stories like your's, that has me continuing to try.

Dec 22, 2012 11:04 AM #11
Ambassador
1,230,006
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County
It can be a really great savings for those who qualify. Sounds like you got a great deal.
Dec 22, 2012 12:33 PM #12
Rainmaker
1,086,868
Gary Frimann, CRS, GRI
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

I think HARP was/is a great program.  It will go right toward stimulus, and has saved many a homeowner from default.  It was a worthwhile program.

Dec 22, 2012 03:46 PM #13
Rainer
238,346
Anne M. Costello
Weidel Realtors - Yardley, PA

A thousand dollars in savings per month is true stimulus. Congrats on working through the system.  Happy Holidays!

Dec 22, 2012 08:04 PM #14
Ambassador
533,690
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

Good for you, Chris!  I wasn't aware that rental properties could be done under this as well.  Hope you both have a wonderful holiday and great start to 2013!

Dec 22, 2012 08:30 PM #15
Ambassador
771,191
The Somers Team
The Somers Team at KW Philadelphia - Philadelphia, PA
Delivering Real Estate Happiness

Being able to do a HARP REFI on an investment property is a blesshing indeed.   Am looking forward to the next one closing as well !

Dec 22, 2012 09:13 PM #16
Rainmaker
1,384,327
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Christopher and Stephanie, I also didn't know this would apply to rental properties. Thanks for the info.

Dec 22, 2012 09:59 PM #17
Rainmaker
1,558,194
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Forgot to ask how long the process took?

Dec 22, 2012 10:11 PM #18
Rainmaker
549,578
Rob Spinosa
Guaranteed Rate, Marin County, CA - San Anselmo, CA
Vice President of Mortgage Lending, Marin County

HARP can be a great program, but I agree with those above who feel it would be even more effective if it applied to more borrowers.  You can take a HARP-eligible borrower, look at all the qualifying criteria and then apply them to an owner who happens to not have a loan backed by Fannie or Freddie (or whose loan was originated after June 1, 2009).  Even though the savings and benefits would help in the exact same fashion, through no fault of his/her own, this borrower cannot refinance.

This is a case of what's good for the goose not being available to the gander and that's unfortunate.  Still, I accept this about HARP and work with those I can.  No sense criticizing the whole program to the detriment of all.

Dec 23, 2012 12:00 AM #19
Rainer
225,344
Dave Sullivan
Real Estate One - Birmingham, MI
Michigan Realtor with an investor viewpoint

Great information and I will be passing it on thank you !!! 

Dec 23, 2012 12:14 AM #20
Ambassador
2,567,704
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

It would be an even better program if it was for other than Fannie and Freddie, but at least there's a segment that can catch a break

Dec 23, 2012 02:34 AM #21
Ambassador
771,191
The Somers Team
The Somers Team at KW Philadelphia - Philadelphia, PA
Delivering Real Estate Happiness

Lyn - Mine took a tad over 3 months and the other one is around the 3.5 month mark.  I have heard other folks get theirs done in 4 to 6 weeks.   Keep in mind, both of mine are going through Bank of America : )

Obviously, the length of time did not matter to me, but more so that it got done.  So my fingers are crossed with the other one that is pending.

 

Dec 23, 2012 02:51 AM #22
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Ambassador
771,191

The Somers Team

Delivering Real Estate Happiness
Ask me a question
*
*
*
*
Spam prevention

Additional Information