Originations: HARP Underwater Refi Qualifying Checklist & Guidance

Today’s Originations linkfest is specialized in the Home low-cost Refinance Program (HARP) that permits homeowners that are underwater refinance. HARP had been set to expire at the conclusion with this 12 months and has now now been expanded to perform through the termination of 2015. Pay particular focus on links by other home loan banker Dan Green whom writes TheMortgageReports blog—he’s all around the latest HARP happenings. Additionally here are the 5 Key Questions To Ask Your Loan Officer About HARP Refis, a bit delivered to me personally by another other mortgage banker Craig Reynolds.

HARP INFORMATION UPDATES – Latest Stats on HARP Refi amount (Christina Mlynski, HousingWire)

– Fannie Mae Regulator Extends HARP Refi Program Through 2015 (Clea Benson, Bloomberg)

HARP QUALIFYING TIPS – HARP Qualifying Checklist – fast Reference variation (TheBasisPoint)

– The Complete HARP Eligibility Specifications (Dan Green, TheMortgageReports)

– HARP 3: Proposed HARP Upgrades & whom May Qualify (Dan Green, TheMortgageReports)

HARP REFINANCING: 5 KEY ISSUES TO ASK THE LOAN OFFICER by Craig Reynolds

Have you been considering HARP refinancing, but are perhaps maybe maybe not certain that you will be entitled to this home loan system? Have actually you attempted to be eligible for the HARP program without success? Should your response is “yes” to either among these concerns, it is necessary about the Home Affordable Refinance Program (HARP) qualification guidelines, but that you find a loan officer (LO) who has a complete understanding of these guidelines that you not only educate yourself.

HARP is made for property owners who possess been able to remain on top of the mortgage repayments, but who will be underwater with a home loan financial obligation that is higher than exactly just what their property is currently worth. With respect to the situation, the HARP mortgage system might function as refinance option that can help save your self these home owners – property owners as you – from drowning.

Having said that, to benefit from a HARP loan, you will need to qualify. To find out your eligibility also to make sure which you have actually the best loan officer to do the job, you will need to pose a question to your LO these 5 extremely important HARP refinancing questions:

(1) Does HARP refinancing connect with condos or leasing home? Yes, you can use it to refinance either a flat or property that is rental. Locate a loan provider or a participating bank in the nation that will get this take place. Try not to accept a lender who cannot or will maybe not refinance these properties.

(2) do you want to accept home loan insurance coverage transfers? Your loan officer should accept home loan insurance transfers, no matter whether or not you’ve got lender paid home loan insurance coverage (LPMI) or personal home loan insurance coverage (PMI). If they are maybe maybe maybe not accepted, locate a LO that will accept home loan insurance coverage transfers.

(3) Have you got loan-to-value financing limitations? Some lenders follow old guidelines and implement a loan-to-value ratio (LTV) limitation of 105%. Nevertheless, the LTV laws when it comes to HARP system have actually changed. You will find just LTV restrictions on loans which are more than a 30 term and on adjustable rate mortgages year. Besides that, so long you are not subject to limitations as you have a new fixed rate mortgage loan that is less than or no longer than a 30 year term. Consequently, when your LTV is with in more than 105%, choose a lender who since access to raised LTVs.

(4) Does my present home loan make me a candidate that is eligible HARP refinancing? To look for the response to this concern, your loan officer should be aware that to be able to qualify, you need to meet the after criteria:

– Your home loan needs to be assured or owned by Fannie Mae or Freddie Mac.

– you really payday loans in Nebraska must be present in your mortgage repayments going back year that is fullone year).

– you mustn’t have formerly refinanced beneath the Residence low-cost Refinance Program, unless it absolutely was a HARP loan that took place between March and can even of 2009 and had been refinanced by Fannie Mae.

– at the moment, your home loan should have a LTV that surpasses 80%

– Your mortgage will need to have been offered to Freddie Mac or Fannie Mae on or ahead of May 31, 2009.

(5) Is an assessment required? an assessment is almost certainly not necessary since you might qualify for an assessment waiver. Select an LO whom knows the appropriate means of entering your details making use of the Freddie Mac or Fannie Mae automated underwriting systems. This method will figure out in the event that you be eligible for an appraisal waiver and it’s also something which your LO needs to do.

Keep consitently the above five concerns in your mind whenever you check out that loan officer to ascertain your HARP refinancing eligibility. Not totally all lenders have actually the appropriate knowledge of HARP certification tips. In reality, there were instances when loan providers have actually created underwriting overlays that caused the home owner become rejected, whenever in most cases the home owner came across the program’s directions.

Therefore, when you’re armed aided by the information that is right you will find a specialist who may have the mandatory HARP system and will also be in a position to work in your very best passions.

Craig Reynolds is just a experienced home loan industry veteran with more than 15 years expertise in handling and loan consulting. More details here. ___ Follow The Writers