Things to Know About the HARP Loan
There are many caveats surrounding the world of HARP loans, and many uncertainties. Though HARP 2.0 is ending at the conclusion of 2016, many speculate HARP 3.0 will be born and carry on just as its predecessor would have since 2009. Many have regarded HARP as a double-edged sword–while it poses a number of attractive benefits, it also offers various unsavory accoutrement. From 2009-2011, HARP helped roughly 1 million households. Our Diditan home loan company and many banks argue that it would have extended its reach to significantly more borrowers had it not been for a particular clause that increased the mortgage lender’s liabilities, and for the 125% loan-to-value restriction. At the end of the day, HARP kept underwater families in their homes by lowering the water line and providing head room for surfacing with many successful refinancing options. Whether or not we will see HARP 3.0 is still uncertain. If we do, here are some questions borrowers will likely ask moving into the next year.
Can I Refinance With HARP if I have a Second Mortgage?
Simply put, yes, you have the option to get a HARP refinance loan even if you have taken out a second mortgage on your home. Just be aware that you aren’t able to pool your two mortgages together by means of a cash-out refinance. Your second mortgage needs to sit alone untouched while your original mortgage gets the spotlight focus with a refinance. Actually, your second mortgage will see its existing first lien go on title, which is a simplistic way of explaining the lender’s agreement to subordinate the mortgage.
Can I Refinance With HARP if I Have No Equity in my Home?
Indeed you can; if you don’t even have a cent of equity in your home, you can still refinance with HARP because helping people who are upside-down is precisely why it exists! You can be so deep underwater with your mortgage that you can even give James Cameron and his single-man sub a run for his money, and a HARP loan will embrace you with open arms.
Can I Refinance With HARP if the Home is Not my Primary Residence?
Absolutely; you can refinance any property occupancy type through HARP, in all of our US states including all territories and the District of Columbia. If you have a 12-unit condo in West Palm Beach as an investment property, a summer home in New England, or a second residence in San Diego, you can refinance any one of your properties with a HARP loan.
How do I Know if I am Eligible for a HARP Loan?
If you meet the following criteria, you are eligible for a HARP Loan:
- Your current mortgage must be guaranteed and owned by Fannie Mae or Freddie Mac.
- Your mortgage had to have originated after or on May 31, 2009
- You need a loan-to-value ratio higher than 80%
- Must be current on mortgage with zero late payments in the last six months, and in the last 12 months have no more than one late payment
When you call Diditan Financial, we will compile all the finer points of your credit and mortgage history, and fight to get you a HARP loan with the best rate and terms.
How can I Tell if my Loan is Owned or Guaranteed by Freddie Mac or Fannie Mae?
Simply go to HARP.gov and locate their eligibility page to access the Loan Look-up tools in order to determine if your loan rests in the bosom of Fannie Mae or Freddie Mac. Once you enter in your details, you will get an instant answer. in the event you should run into any complications, call our Diditan Financial team and we will look the information up in no time!