HARP 2.0 Refinance For Underwater Homeowners

(prHWY.com) April 13, 2012 - New York, NY -- New York, 13th April , 2012 - The most ambitious federal mortgage program to date aimed at millions of underwater homeowners. The so-called "HARP 2.0â€³ program is the second version of the Home Affordable Refinance Program is effective March 2012.

The revisions are crucial for owners who have outstanding mortgage balances in excess of 125 percent of the current resale values of their homes. Under the second version of HARP, there is no upper limit on permissible loan-to-value ratios, or LTVs. You can owe twice or even three times the value of your home and still qualify for a refinancing at today's low interest rates. The earlier version imposed a limit of 125 percent, which cut out millions of the hardest-hit victims of the real estate bust.

The latest HARP also comes with streamlined underwriting -- no requirement for physical appraisals in many cases, speedy processing and elimination of some of the deal-breaker fees imposed by Fannie Mae and Freddie Mac in recent years.

Among the key rules:
- Only loans owned or guaranteed by Fannie Mae and Freddie Mac are eligible. Underwater borrowers who have FHA, VA or other types of mortgages are not. Both companies' websites offer "look up" features that tell you whether they own your loan.
- Your mortgage must have been purchased or securitized by either company no later than May 31, 2009, and must have an LTV ratio in excess of 80 percent.
- You must be current on your loan with no 30-day late payments during the six months preceding application and no more than one late payment during the last 12 months.

To find out if your loan is owned or guaranteed by Fannie Mae or Freddie Mac simply call us 888.9LOAN99 or complete our online application form today. We'll help you determine if your mortgage is backed by Fannie Mae or Freddie Mac.

Fannie Mae DU Refi Plus (guidelines may vary depending on the servicer/lender)

LOAN PARAMETERS BEFORE MARCH 2012 AFTER MARCH 2012

LTV/CLTV/TLTV
Max LTV = 105%
TLTV/CLTV = 110%
Max LTV = Unlimited on
fixed-rate loans
Max LTV = 105% on ARMs
Max TLTV/CLTV =
Unlimited on fixed-rate and ARMs loans
Minimum Credit or FICO Score, if the loan will be serviced by the same servicer 620 = Primary Residence
680 = Second Homes and Investment Properties No minimum Credit Score, regardless of occupancy type
Number of financed properties, if the loan will be serviced by the same servicer Primary Residence = Unlimited
Second Home = Four (including Primary)
Investment Property = Four (including Primary)
There is no limit on the number of properties financed with other lenders Unlimited for Primary Residence, Second Home and Investment Properties
Minimum Credit or FICO Score, if the loan will NOT be serviced by the same servicer 620 = Primary Residence
680 = Second Homes and Investment Properties No change to current policy
Number of financed properties, if the loan will NOT be serviced by the same servicer Primary Residence = Unlimited
Second Home = Four (including Primary)
Investment Property = Four (including Primary)
There is no limit on the number of properties financed with other lenders No change to current policy

Loan Amount Calculation
Late fees, pre-payment penalties, or funds to pay taxes or insurance (when there is not an escrow account) may not be included in the loan amount and must be paid with the borrower's own funds.

Freddie Mac Relief Refinance Mortgage (guidelines may vary depending on the servicer/lender)

LOAN PARAMETERS BEFORE MARCH 2012 AFTER MARCH 2012

LTV/CLTV/TLTV * Max LTV = 105%
* TLTV/CLTV = Unlimited * Max LTV = Unlimited on
fixed-rate loans
* Max LTV = 105% on ARMs
* Max TLTV/CLTV =
Unlimited on fixed-rate
and ARMs loans

Loan Amount Calculation
ï‚§ LTV > 80%:
- Late fees, pre-payment penalties, escrow shortages, or funds to pay taxes or insurance (when there is not an escrow account) may not be included in the loan amount and must be paid with the borrower's own funds.
ï‚§ LTV

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