What is the Home Affordable Refinance Program (HARP)?
The HARP 2.0 Home Affordable Refinance Program is designed to allow a refinance of properties that no longer have 20% equity and benefit of historically low rates. In short, you have to be current on payments, and your loan has to be owned by Fannie Mae or Freddie Mac (not the same as who services your loan or where you make your payments). Generally conforming loans (below $625,500). Loan must have been guaranteed by Fannie Mae or Freddie Mac prior to 6/1/2009.
More choices if you have a Fannie Mae loan … a bit limited if you have a Freddie Mac loan. Fannie Mae has a lot more participating lenders so is more successful thus far. Freddie Mac has fewer participating lenders so a bit more of a chore. Also, loans with existing mortgage insurance require a bit of care.
Existing 2nd loans are allowed with unlimited combined loan to value.
Rates are fabulous so it’s worth checking if you would benefit from a refinance to record low rates.
- Single family investment property – $417k loan where the value has slipped as low as $335k (125% loan to value) can be refinanced to a new 30 year fixed loan at rates at or below 4.0%!
- Multi-family properties up to four units can be refinanced at similar rates as there are caps on the adjustments for loan to value, credit score, occupancy and number of units!
The first step is to determine your loan is OWNED by Fannie Mae or Freddie Mac. You are welcome to submit your information to allow us to check.
No requirement (or benefit) to refinance with your existing lender as they may have overlays that restrict benefit.
Fannie Mae and Freddie Mac may assign an automated valuation of the property thus eliminating the need for an appraisal.
Pay attention to the refinance of a primary residence or second home. With a primary residence there are also limits to the “adds” so rates are very competitive.
We can help – we have completed an investment property refinance with a loan that is 199% of the value of the property! For further information the green button above.