We are located at 8350 E Raintree Dr #105, Scottsdale, AZ 85260. The Home Affordable Refinance Program (HARP) allows owners of underwater homes to refinance to today’s low interest rates. Refinancing is typically not possible for owners with little or negative equity. The key requirement for HARP eligibility is that the home loans must be owned by Fannie Mae or Freddie Mac. HARP At a Glance
HARP ha
s changed over time. In October 2011, the Obama Administration announced comprehensive rules for the new HARP, which people in the industry called “HARP 2.0.” In November, the Federal Housing Finance Agency (FHFA) expanded HARP and announced updated guidelines, which are discussed below. On March 19, the start of the automated loan approval systems expanded homeowner's choices in lenders. HARP allows homeowners facing difficulties refinancing their mortgage through conventional methods to apply for a refinance of their mortgage. A homeowner that is current with their monthly payments but unable to refinance due to a drop in the value is the typical prime candidate for the HARP program. The ultimate goal is to allow a homeowner to do a mortgage refinance for a lower interest rate and overall monthly payment. Here are the general eligibility guidelines for HARP:
* There is no loan-to-value cap in the new HARP, for fixed-rate loans. This is the most significant change of HARP 2.0. Under previous versions of HARP, the LTV could not exceed 125%. March 2012 Update: Perhaps the biggest news in the November 2011 announcement by Fannie Mae and Freddie Mac was that HARP 2.0 would allow for unlimited LTV loans. This went into effect in December 2011 for loans processed by the original lender through the manual underwriting systems.
*The loan on your property is owned or guaranteed by Fannie Mae or Freddie Mac
(Go to www.MakeYourLoanAffordable.com to see if you qualify)
* At the time you apply, you are current on your mortgage payments. You can have one 30-day late payment in the past 12 months, but none within the past six months. HARP Changes for Lenders & Effects on Borrowers
The following is a summary of key changes found in HARP 2.0.
*** Limited Liability ***
What’s new: A key provision of the new HARP is that it limits lenders’ liability in cases of loan default. Essentially, Fannie and Freddie will not force the lender to buy back a non-performing loan. Effect on you: This change should greatly expand HARP’s reach. Lenders will be much more eager to offer HARP loans, where they were previously reluctant. With more lenders participating, you will have an easier time getting a HARP mortgage.
*** Lender Fees Dropped ***
What’s new: Fees that Fannie and Freddie charge lenders for high LTV loans are being cut. Effect on you: The reduced fees are passed on to you, making your loan cheaper. If you are financing to a 15-year or 20-year loan, the fees are cut even further.
*** Income Requirements Relaxed ***
What’s new: As long as your new HARP monthly payment is not more than 20% greater than your current payment, specific credit and income guidelines do not apply. The lender will have to determine that the borrower is an “acceptable credit risk” (and what that means is yet to be determined). Effect on you: A high DTI is not enough to automatically disqualify a borrower. Also, if your family is now a one-income family when it was a two-income family on the original loan, you only have to show proof of one income, as opposed to conventional loans where all borrowers listed on the application must document income.
*** Credit Score Requirements Relaxed ***
What’s new: The lender will have to determine that the borrower is an “acceptable credit risk” (and what that means is yet to be determined). Effect on you: A low credit score is not enough to automatically disqualify a borrower.
*** Underwriting Requirements Relaxed ***
What’s new No. 1: Mortgage Payment History: A HARP lender can approve a loan that has one late mortgage payment in past 12 months, as long as it did not take place in the last six months. Effect on you: You won’t be counted out for a mortgage late, when that could normally eliminate your ability to get refinanced at the lowest rates available. If you have a recent mortgage late, you can still apply for HARP, once you meet the relaxed mortgage late requirements. What’s new No. 2: Relaxed Foreclosure & Bankruptcy rules: Your HARP loan could be approved, regardless of how recently a borrower filed bankruptcy or experienced a foreclosure. Effect on you: Normally, if you filed for bankruptcy or experienced a foreclosure you would have to wait years before you could successfully refinance.
*** Occupancy Requirements Relaxed ***
What’s new: Owner Occupancy: HARP loans are no longer restricted only to owner-occupants. Effect on you: You can now use HARP to refinance your second home or investment property.
*** Lenders Must Show a Borrower Benefits ***
What’s new: Lenders must show that the HARP mortgage borrower derives one or more of the following four benefits in the new loan:
1.Reduce the size of the monthly payment
2.Change to a more stable loan product, such as moving from an adjustable-rate mortgage to a fixed-rate mortgage
3.Reduce the interest rate
4.Reduce the loan amortization term (moving to a shorter-term loan)
Relaxed Condominium Requirements
What’s new: HARP eligibility used to require that no more than 10% of units in the complex be owned by one person and that no more than 20% of owners in the complex be behind on their HOA dues. These requirements are now removed. Effect on you: More condo owners will now qualify for HARP. If you own a condo, your qualifying for the HARP program is no longer dependent on your neighbors’ finances. NMLS #307666 AZ: 0915598 | CA-DBO307666 / State Licensing | NMLS Consumer Access | Privacy/Security
Copyright © 2017 VIP Mortgage Inc. does Business in Accordance with Federal Fair Lending Laws. NMLS ID 145502. AZ: Mortgage Banker License No. BK-0909074. CA: BRE Real Estate Corporation License Endorsement 01866775 | DBO Residential Mortgage Lending Act License 4131324 D.B.A. V.I.P. Independent Mortgage, Inc. | 41DBO-58745. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act. Mortgage, Inc. does Business in Accordance With Federal Fair Lending Laws. Mortgage Inc. is not acting on behalf of or at the direction of HUD/FHA or the Federal Government. is approved to participate in FHA programs but the products and services performed by V.I.P. are not coming directly from HUD or FHA.
