New HARP II Program
Homeowner's Affordable Refinance Program
Effective March 17th, 2012 (2nd Revision)
Loans serviced by either Fannie Mae or Freddie Mac and have a securitization date prior to JUNE 1, 2009. Must have closed as a Conventional Loan.
Must be current on your mortgage. :Must be paid on time for the prior 6 months, and at least 11 of the most recent 12 months. Mortgage sold to Fannie or Freddie prior to June 1, 2009, and you may not have used the HARP mortgage program prior - only 1 HARP refinance allowed!
Mortgage Rates for the HARP mortgage program are the same as for a "traditional" refinance. There is no "premium" for using the HARP program.
The HARP program is NOT DESIGNED to delay, or stop, foreclosures. It is meant to give a homeowner who is current on their mortgage, and who has lost home equity, a chance at today's low mortgage rates.
No Loan to Value restriction for a HARP loan, regardless of how far underwarter. You can have 300% loan to value and STILL be HARP - eligible. The HARP program is NOW unlimited LTV for FIXED RATE LOANS with a 30 Year term or less. If you use an ARM for HARP 2.0, you are limited to 105% LTV. ONLY FIXED RATE LOANS GET THE UNLIMITED LTV TREATMENT.
Although your home's value does not matter for the HARP mortgage program, lenders will run what's called an "automated valuation model" (AVM) on your home. If the value meets reliability standards, no physical appraisal will be required; however, the lender may choose to commission a physical appraisal anyway - just to make sure your home is "standing".
Loans with 20% down initially will not be required to have PMI (Private Mortgage Insurance) even with value underwater. If your loan has current PMI, your PMI payments will not increase: however, your mortgage insurance policy may require an extra step. Remind the lender that you are paying PMI to help the refinance process move more smoothly.
You can utilize the HARP program if your current loan HAS PMI or even Lender Paid Mortgage Insurance (LPMI) making sure the new mortgage carries, at minimum, the same amount of coverage.
Maximum Mortgages limited to your area's conforming loan limits usually being $417,000 in Illinois.
No Cash Out.
Condos, Second / Vacation Home, Rental -Incvestment Home, acceptable to HARP 2.0.
HARP 2.0 is meant for 1st liens only. Second liens are meant to subordinate. You will replace your 1st Mtge and the 2nd Mtge will remain as is.
Closing Costs can be "Rolled" into the new mortgage balance, but may not exceed the local conforming loan limits.
The revised HARP 2.0 Loan program expires January 1, 2014. You must close on your mortgage prior to that date. It is a terrific program! Time is a wasting. Refinance TODAY and make a difference in a Veteran's Life.
Copyright © 2013 American Fidelity Mortgage Services Inc
Illinois Mortgage Licensee License # MB 0000303
In the State of Illinois Mortgage Bankers are governed by:
IL Department of Financial & Professional Regulation Division of Banking
122 South Michigan Ave., Suite 1900 Chicago, IL 60603
Phone: (312) 793-3000
Fax: (312) 793-7097
Toll Free Consumer Hot Line: (877)-793-3470