HARP2.0 Refinancing if you are Upside Down

What is HARP2.0? HARP stands for The Home Affordable Refinance Program. It allows you to refinance your home even if you owe more than the home is worth. Below are the parameters:

1) The mortgage must have been originated prior to June, 2009 to be eligible (HARP3.0 could potentially remove this date, read below about HARP3.0).

2) Fannie Mae or Freddie Mac must own your loan (don’t confuse this with who services your loan, borrowers will not know if Fannie or Freddie own their loan unless they check with us or Fannie and Freddie). Also, HARP3.0 could potentially make non-Fannie and non-Freddie loans eligible, read below.

To see if you are eligible call or email us or go to the sites below:

Freddie Mac: https://ww3.freddiemac.com/corporate/

Fannie Mae: https://knowyouroptions.com/loanlookup

Recently, Fannie and Freddie both added enhancements to the program. Below are the highlights:

1) Unlimited LTV (this means no matter how much you are upside down, you are still eligible).

2) Expanded debt-to-income ratios (we recently approved a borrower with a debt to income ratio of 85%).

3) No seasoning on bankruptcies (previously the waiting period was at least 2 years, now there is no waiting period after discharge).


There has been a proposal for HARP3.0. Whether it actually happens is yet to be determined. Below are the enhancements if the bill is passed:

1) No cut off date. You could have closed on your loan last month and be eligible. June 2009 would no longer be the cut-off.

2) Non-Fannie and non-Freddie loans would be eligible.

These two enhancements would allow millions of additional homeowners to refinance. If HARP3.0 could potentially help you then please shoot us an email and we will contact you if HARP3.0 is passed.

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