From IndigoMortgage.net

Monday, March 5, 2012

Is the HARP 2.0 Program Right For You? Weighing Your Best Options



When traditional routes of refinancing have proven problematic and you are searching for a way to secure a refinance loan in New Mexico, look to the Home Affordable Refinance Program (HARP), Version 2.0 for answers.

The HARP loan is designed for consumers to secure stable and affordable refinance loans when traditional modes of refinancing are unobtainable, especially when New Mexico home values are often well below that of the mortgage held by many homeowners. This is a way to provide some relief and keep New Mexico homeowners and those around the country in their homes.

Do You Qualify For a HARP Loan?
The government has set strict guidelines to qualify for a HARP loan. You must meet all of the following criteria to qualify:
·         Your current home loan must be owned by Freddie Mac or Fannie Mae;
·         Your present home loan cannot have been refinanced previously under the HARP refinance program. There is an exception to this rule. For homeowners with a Fannie Mae loan who refinanced under HARP from March 2009 through May 2009 are eligible for a new HARP;
·         You must have a loan-to-value ratio of greater than 80% to qualify;
·         Your current home loan must be current and your past 12 months of payment history must be in good standing; and
·          Your current loan must have been sold to Freddie Mac or Freddie Mac on or before May 31, 2009 to qualify for a new loan.
These guidelines are for reference only and a qualified loan specialist can assist you in determining eligibility.

The Process  
Like a traditional loan, a HARP loan requires a loan application and through underwriting process to ensure eligibility. You can check your home’s eligibility for a HARP loan on the Fannie Mae or Freddie Mac websites. Simply enter your personal information and address to determine if Freddie Mac or Fannie Mae owns your loan. If your loan is owned by either lender, you will meet this eligibility requirement.

You should check for eligibility even if your loan is with Wells Fargo, Chase, or Bank of America. Oftentimes, these banks will simply be servicing the loans and collecting payments and they do not actually own the loans they service.

The Rates and Features of the HARP Loan 
Homeowners using the HARP loan program will enjoy the same rates as traditional buyers. This is one of the keys to the HARP refinance program. Also, borrowers need to be aware that HARP is not designed to assist you in stopping or delaying a foreclosure. The program is strictly designed to allow homeowners to refinance their mortgages at today’s interest rates.

There is no restriction on your loan-to-value (LTV) ratio under HARP. Homeowners who are severely underwater can refinance under this program as long as they have a fixed rate 30-year mortgage. For borrowers with an adjustable rate mortgage, there is a cap at 105% of the loan-to-value ratio.  

Our Team is Ready to Help You with Your Home Loan Needs
The new HARP 2.0 program rolls out March 17th! When you find yourself in need of a loan, turn to the professionals at Indigo Mortgage. Our knowledgeable loan specialists are well-versed with HARP 2.0 rules and eligibility requirements.
Let us assist you in refinancing your current home loan because no one cares more about your loan that we do. Give us a call at 505.836.5700 to schedule an appointment with one of highly-skilled loan professionals.

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