Harp Refinance Mortgage loans

Upside Down On Your Virginia Home Mortgage?

Are you a Virginia home owner who is up side down on your existing conventional mortgage and could not refinance in the past? Now is your golden opportunity to Refinance under Fannie Mae and Freddie Mac HARP 2.0 program. You may be eligible for a refinance without paying down ANY principal, mortgage insurance, and in many cases, without paying any closing cost out-of-pocket and any property appraisal.

HARP, stands for Home Affordable Refinance Program, is a financial aid program announced by federal government in 2009 to help millions of homeowners in refinancing their mortgages- even if they owe more than the home’s current value. If you refinance, your total finance charges may be higher over the life of the loan.

HARP 2.0 – Help For Virginia Home Owners

The previous HARP back in 2009 allowed borrowers to refinance their home that was up to a 125% LTV ratio as long as the loan was backed (securitized) by Fannie Mae or Freddie Mac. However, an additional guideline change to HARP 2.0 actually lifted the loan-to-value restrictions. So, Virginia home owners with a LTV ratio even greater than 125% can now apply to this program.

If you have been turned down before for this program, you will certainly want to re-apply for HARP 2.0.

Key Features of new HARP 2.0 Program

1. No maximum LTV (loan-to-value) – 80% LTV & higher is OK.

2. Your loan must be owned (securitized) by Fannie Mae or Freddie Mac.

3. No late payments in the last 6 months, up to one late pay in last 12 months allowed.

4. Flexibility on appraisal requirement. May or may not be required.

5. Minimum credit score of 620 needed for qualifying.

6. Income must be documented – tax returns needed for commission/self employed.

7. Loan must have been originated before 5/31/2009.

8. If current loan has no private mortgage insurance (PMI), no PMI is required. If you have PMI now, same level of coverage is transferred to new loan.

9. Jumbo high balance conforming loan amounts are allowed.

10. Secondary financing (HELOC’s) must be resubordinated.

11. USDA, VA and FHA mortgages are NOT HARP-eligible.

In order to qualify for HARP assistance, the basic eligibility requirements are:

1. Your loan must be backed by Freddie Mac or Fannie Mae

2. Freddie or Fannie should have bought your mortgage prior to June 1st, 2009.

Do You know If Your Loan Is Backed By Fannie Mae or Freddie Mac?

Unfortunately, Virginia homeowners rarely know who actually “owns” their mortgage loan. Normally, homeowners receive their monthly statements, and make their monthly payments, to their mortgage servicer. Mortgage servicer is not the one who provided the funding of your mortgage.

You can check “lookup” your loan on the Fannie Mae and Freddie Mac web sites. However, keep in mind that these web forms are not always accurate as the address and borrower name would have to be exactly the same as was recorded with Fannie or Freddie when they purchased your loan.