HARP 2.0 – What are the
benefits of the program?
Everyone we know seems to be talking about the new “HARP 2.0” program which is the newest edition of government-sponsored mortgage relief. So what can HARP 2.0 do for you? In short, this newer version improves on the initial HARP program by removing the 125% LTV limitation. In plain terms, many folks who couldn’t qualify for the first edition of HARP because their homes are horribly under water would qualify now. Other new features of HARP 2.0 include reduced pricing hits at these higher LTV’s for shorter term loans (15yr fixed) and transferable PMI, but the key enhancement of HARP 2.0 is definitely the no-limit LTV.
There are a few key requirements to qualify for the HARP 2.0 program. First, to qualify for HARP 2.0, your mortgage must currently be insured by Fannie Mae(DU Refi Plus) or Freddie Mac( known as “Open Access”). Next, you need to have been making your mortgage payments on time to qualify for HARP 2.0. Finally, the loan had to close on or before May 31, 2009. One additional requirement for HARP 2.0 is that you cannot have already refinanced using the original HARP.
HARP 2.0 – Tip#2: Relaxed underwriting guidelines.
One additional benefit of the HARP 2.0 refinance program is the somewhat relaxed underwriting guidelines. Specifically, the guidelines related to late mortgage payments on your existing loan. Under the new HARP 2.0 program, you can actually have paid your existing mortgage late one time within the last 12 months, as long as the late payment occurred more than six months ago.
When you compare mortgage rates for a HARP 2.0 refinance, the most important factor is talking to a lender that is an expert in the HARP 2.0 guidelines.
HARP 2.0 – Tip#3: What does this mean to the industry?
One thing is for sure, this new HARP 2.0 program should definitely help kick-start the mortgage industry a bit while also helping many homeowners enjoy month savings that come with historically low interest rates who otherwise would not be eligible to refinance. While there will likely still be millions of homeowners still left high and dry, this updated version of HARP looks like it will help some folks who need relief the most: those who are seriously upside-down on their mortgage.
Author Joe Karns is sales and marketing leader and master of the HARP 2.0 is dedicated to bringing his subscribers relevant and useful information. Want a free mortgage checkup? Check out Joe Karns at the following link for more a FREE refinance consultation and expert advice on finding the Best Refinance Lenders. Or, click here for a free quote on a HARP 2.0.