New HARP Relief Programs

The Federal Housing Finance agency has recently announced (November 15th, 2011) changes to the Home Affordable Refinance Program (HARP). The new changes are designed to assist borrowers who have demonstrated an acceptable payment history on their existing Fannie Mae mortgage loan, but may have not been able to refinance to obtain a lower payment or move to a better loan program for their needs.

Fannie Mae is removing the maximum loan-to-value (LTV) ratio limits for Refi Plus Mortgage loans secured by fixed-rate mortgages with terms up to 30 years.

The new maximum LTV ratio limits for all occupancy and property types are:

  • NO Maximum for fixed-rate mortgages with terms up to 30 years
  • 105% for fixed-rate loans with terms greater than 30 years up to 40 years
  • 105% for Adjustable Rate Mortgages with initial fixed periods greater then or equal to five years and terms up to 40 years

Underwriting Requirements

  • Mortgage payment history requires lender to verify that borrowers have not had ANY mortgage delinquencies on the existing mortgage
  • Re-qualification required for large payment increases. Borrower must re-qualify for new loans if there is a large payment increases of 20%
  • Fannie Mae is removing the requirements that the borrower(on new loans) meet standard waiting period and re-establish credit criteria following a bankruptcy or foreclosure.
  • Loan-Level price Adjustments are significantly reduced. No price adjustments on Primary residences with LTV over 80%

Freddie Mac and Fannie Mae have adopted changes to the Home Affordable Refinance Program (HARP) and you may now be eligible to take advantage of these changes.

If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under the the enhanced and expanded provisions of HARP.

You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following links:

http://www.freddiemac.com/mymortgage or http://www.fanniemae.com/loanlookup.

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