What is the HARP Refinance Program?

HARP stands for Home Affordable Refinance Program. This program is for homeowners whose homes are now worth less than what they owe. 

If you are a responsible homeowner but the current marketplace loan-to-value (LTV) requirements and need for a new appraisal have made it difficult or impossible for you to refinance at today's record low interest rates, Cambria Mortgage may even be able to help you without needing a new appraisal or meeting previous LTV requirements. 

Breaking News: HARP PROGRAM EXTENDED.  Now ENDS 12/31/2018

BASIC HARP LOAN REQUIREMENTS

Who is eligible for HARP? You may be eligible if:

1. The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
2. Your current mortgage must have closed on or before May 31, 2009.
3. The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
4. The current loan-to-value (LTV) ratio must be greater than 80%.
5. The borrower must be current on the mortgage at the time of the refinance, with no late payment in the past six months and no more than one late payment in the past 12 months.

Who really owns your Mortgage. 
If you don�t know you can look it up in just seconds. 

• Fannie Mae,
  • 1-800-7FANNIE (8am to 8pm EST).
  • https://www.FannieMae.com/loanlookup
• Freddie Mac 
  • 1-800-FREDDIE (8am to 8pm EST)
  • https://ww3.FreddieMac.com/corporate

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COMMON HARP QUESTIONS

How do I know if my loan is owned by Fannie Mae or Freddie Mac?
Simply call or E-Mail me. I'll help you determine if your mortgage is backed by Fannie Mae or Freddie Mac, or use the links just above.

I'm underwater. I owe more than my property is worth. Do I still qualify for HARP ?
Yes. Eligible loans will include those where the first mortgage exceeds the current market value of the property.

If I am behind (delinquent) on my mortgage, do I still qualify for the HARP ? 
No. But the good news is, you may qualify for the Modification Initiative. Contact me to discuss your situation and review your options.

I have both a first and a second mortgage. Do I still qualify to refinance under the HARP Refinance program?
Yes. Technically, the amount owed on the second mortgage doesn't matter, but the 2nd mortgage lender does need to agree to subordinate their loan. Talk to your Loan Officer about your second mortgage.

I have both a first and a second mortgage. Can I combine these into one new loan under the HARP program?
NO. You can not combine these two (or more) loans into one. The HARP program will only refinance the existing first mortgage.

Will refinancing lower my payments?
That depends. If your interest rate is much higher than the current market rate, you would likely see an immediate reduction in your payment amount. However, if you are have an adjustable loan, or are paying interest only on your current mortgage, you may not see your payment go down. BUT... you will be able to avoid future mortgage payment increases and may save a great deal over the life of the loan.

What will the interest rate be?
The interest rate will be based on market rates at the time of the refinance. Currently, interest rates are at historical lows, which makes this a good time to examine your refinancing options.

Will refinancing reduce the amount that I owe on my loan?
No. Refinancing will not reduce the principal amount you owe. However, refinancing should save you money by reducing the amount of interest that you repay over the life of the loan.

Can I get cash out to pay other debts?
No. Only standard closing costs (appraisal, title, credit report, state taxes, lender fees, etc) may be included in the refinanced amount.

Do I need to pay closing costs?
YES. HARP refinance loans have closing costs just like any other refinance. Like other refinance transactions, you can pay the costs out-of-pocket, roll them into a slightly higher loan amount (most common), cover them with a slightly higher interest rate, or any combination of these options. Check with your Loan Officer, as there are a few restrictions.

I am really far underwater on my mortgages, can I still use HARP?
YES. Under the new HARP 2.0 (Starting December 1, 2011). Under the old HARP rules, you were capped at 125%. Now you can be really far underway and still qualify for HARP

What is the maximum loan amount? I have / need a jumbo loan?
The maximum loan amount is the same as the maximum loan amount in your area. For 95% of the country, this is currently $417,000 (Check loan limits - Select Fannie/Freddie under the "limit type" option)

I heard adjustable mortgage refinances are different?
YES. If you choose a new adjustable loan, you are capped at 105%. Only fixed rate refinance loans are unlimited.

My current loan is FHA, can I use HARP?
No. Only loans that are backed by Fannie Mae or Freddie Mac are eligible. FHA loans, VA loans, USDA Rural Development, and many private loans, like the ING Orange ARM loans are NOT eligible.

My current mortgage company says they are the only ones that can help me refinance with HARP. Is this true? Do I have to use my current lender?
No. You can use any participating lender you want in the vast majority of cases.

I put over 20% down originally, so I have no PMI. Will I have to have PMI on the new loan?
No. That is one of the best aspects of HARP. If the original loan did NOT have mortgage insurance, the new loan does not need mortgage insurance, not matter how underwater you are.

Can I refinance my second / vacation home or a rental / investment property with HARP?
YES. That is allowable. You just need to meet all the other standard Home Affordable Refinance program guidelines

How do I apply for a HARP Loan? 
Apply for HARP right on your mobile device, call or visit my office to discuss your specific situation and to examine your options. If this plan is right for you, we can begin working on your refinance immediately.

As part of the discussion, we may need to look at the following information:

• Recent pay stubs to help determine your gross (before tax) household income.
• Your most recent income tax return.
• Information about any second mortgage on your house.
• Account balances and minimum monthly payments due on all of your credit cards.
• Account balances and monthly payments on all other debts, such as student loans and car loans.

As always, if you have any questions or would like to discuss how this may specifically impact you, I'd be happy to sit down with you. Just call or email me to set up an appointment.