HARP 2.0 Rolling Out on March 19th

For those upside down on their mortgage, good news may be on the way.  The government-sponsored HARP program has been around for years but with limited success.  Several key changes have been made to the program and a new improved HARP 2.0 is being unveiled on March 19th.

The biggest change is that moving forward a home owner will be able to refinance despite the value of the owner’s home.  Thus, unlimited loan-to-values will be allowed, meaning someone could owe twice as much as the value of their home and still be able to refinance it.  The other big change is that if someone has private mortgage insurance (PMI) now, they will be able to refinance maintaining the same level of PMI.  It took years of work to get PMI companies on board with this plan but systems are now in place which will enable this to happen.  Although current levels of PMI can now be maintained, please be aware that 2nd mortgage balances cannot be rolled into the new loan.

These are two fabulous upgrades to the HARP program and make it a much more viable option for many.  To be eligible for HARP 2.0, the current loan must be owned by Fannie Mae or Freddie Mac and originated prior to May 31, 2009.  If you pass both of these tests, we would love to hear from you to give you more details about HARP 2.0!

March 6, 2012 by · 2 Comments

About James

James A. Williamson is currently the Sr VP of Sales Development for Shelter Lending Services (formerly Fairfield Mortgage). James joined Shelter in 1994 and was the company's top Loan Officer in GA for 20 straight years helping over 2500 families finance their homes. James now oversees an incredible group of Loan Officers in Atlanta while further building Shelter's Atlanta business.

Comments

2 Responses to “HARP 2.0 Rolling Out on March 19th”
  1. MightyDollar says:

    James-

    If I have a second mortgage, will that prevent me from refinancing my first with HARP 2.0? Additionally, does having a second automatically force me to refinance with the bank that holds the first?

    Thanks

  2. James Williamson says:

    No, having a current 2nd mortgage will not prevent you from refinancing with HARP 2.0, you just won’t be allowed to roll the 2nd mortgage balance into the new loan. A subordination agreement will also have to be created and approved by current 2nd mortgage company before closing. This will add a few weeks to the process but they most likely will agree to remain in the 2nd mortgage position as they really have nothing to lose since there is no equity in the home anyway, and since the borrower will be improving their cash-flow position with the refinance (an indirect benefit to them). Also, you will be able to refinance with any lender that is eligible to offer the program. Thanks for the great questions and please let me know how I can help further!

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