HARP Mortgage Program Qualification Criteria
- Have you been told that you can’t refinance?
- Do you have good credit but can’t refinance because you bought your house during the height of the market?
- Has someone told you that you don’t qualify because you have PMI?
For the first time, HARP loans are available and can save you thousands of dollars every year.
Here’s what you need to know:
- HARP loans are available if you loan is currently owned by Fannie Mae of Freddie Mac. This is different than who you send your payment to. Most mortgages in America are owned by one of these 2 agencies and the homeowner doesn’t even realize it. A mortgage professional can tell you if your loan is eligible.
- Homes that are “underwater” or “upside-down” are OK! There are no value restrictions. Even if you owe $300,000and your house is now only worth $100,000, you can refinance!
- Credit guidelines are very flexible. You need to be current on your mortgage for at least 6 months without any serious delinquency in the last year.
- Income ratio’s are also very flexible, if you have been turned down in the past it’s finally your time to refinance!
- Your current loan must have started in May of 2009 or before. If you’ve refinanced since then, unfortunately you won’t qualify.
- Documentation is very minimal, typical borrowers are required to provide only 1 paystub, a mortgage statement and proof of Home Owners Insurance.
- Appraisals are generally not required. There are times when they are needed, but it’s only in rare cases. No appraisal means no appraisal cost either!
- Rates are typically slightly higher than a standard refinance, but still extremely low. Closing costs are typically lower than a standard refinance.
- Processing time will vary from lender to lender; larger banks can take up to 2 months. But many mortgage banks are moving these very quickly. 2 weeks is not uncommon from the time of application to the time of closing.
- Borrowers with PMI can now get approved. In the past these borrowers were turned away, but the Mortgage Insurance companies have now arranged to help you refinance. Your monthly mortgage insurance cost will not go up, and often may come down.
- Borrowers with LPMI can now refinance. These are borrowers who put a down a small amount when they bought their house and opted to take a higher interest rate instead of a monthly Mortgage Insurance premium.
Find out if you qualify for a HARP loan today!
Use our Free Tool to Quickly Determine Your Eligibility.
HARP Loan Eligibility Tool, Click Here To Get Started