HARP 2.0

The Government Stepped up with HARP 2.0

The HARP 2.0 program began in April 2009 and was extended to run through December 31, 2015. 

HARP 2.0 was created to stabilize the housing market with a refinance program to help individuals who have loans that are guaranteed or owned by Fannie Mae or Freddie Mac.

How do I know if I have a Fannie Mae or Freddie Mac loan?

Most people don’t have a clue whether they have a Fannie Mae or Freddie Mac loan.

You can call your current lender or company that is servicing your loan to find out or check it yourself by going to the following website.

Fannie Mae: https://www.knowyouroptions.com/loanlookup

Freddie Mac: https://ww3.freddiemac.com/corporate

If you are unsure of yourself and would like one of our mortgage advisors at Legacy Financial Services to assist you, give us a call at: 888-838-4768.

How do I know if I am eligible for the HARP 2.0 program?

To be eligible for the HARP 2.0 program you must meet all of the following criteria.

·         The mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac.

·         Your loan must have been closed on or before May 31, 2009 that was sold to Fannie Mae or Freddie Mac.

·         The current loan-to-value (LTV) must be higher than 80% of the value of your home.

·         Your loan must be current at the time of your refinance.

·         No mortgage late payments are allowed within the past 12 months.

·         If your current was refinanced under HARP previously it is not eligible unless the HARP loan had occurred between March-May 2009.

Do I have to use the same lender that I have for a HARP 2 refinance?

No!  Not all lenders do HARP 2 loans including the one that may be servicing your loan.

It is important to shop around for a lender that does the HARP 2 loans and compare rates and costs.

Legacy Financial Services of Southern California does have lenders who will do HARP 2 loans.  One of our knowledgeable loan advisors can assist you with determining if you are eligible for a HARP 2 refinance.

What types of properties can qualify for the HARP 2 refinance?

Below is a list of qualifying properties for the Harp 2 refinance program.  Each lender has specific guidelines.

·         Single family homes

·         Condo’s

·         Investment Property

·         Vacation home

·         Rentals

My home is underwater.  Is there a limit as to how high a lender will go to refinance under HARP 2?

Each lender has specific guidelines and conditions in approving a Harp 2 loan.  Some lenders go as high as 175% loan-to-value while others remain at 105% loan-to-value.

At Legacy Financial Services, we are able to shop around with our different lenders to find one that will match your criteria.

Do I need to have an appraisal for a HARP 2 loan?

It depends on the lender whether an appraisal is necessary for a HARP 2 loan. 

The lender may require that an “automated valuation model” (AVM) be run on your property.  If the value meets reliability standards and the lender has no other concerns a formal home inspection appraisal may be waived.

Again, it is up to the lender to make that call.

I have a 1^st and 2^nd mortgage on my property.  Can I still do the HARP 2 loan?

If your property qualifies under the guide lines for a HARP 2 refinance the answer is “YES”.  However your 2^nd mortgage cannot be wrapped into a new HARP 2 loan for a 1^st mortgage.

The 2^nd mortgage would have to agree to subordinate which means that they would stay in second position.

Some times it may feel overwhelming when making decisions regarding your mortgage and what is best for your situation.  Our loan originators at Legacy Financial Services in Orange County are available to help you with your loan and evaluate what is best for your circumstances.