Home Affordable Refinance Program Phase II (also known as HARP)

Finally, there’s another new program that allows homeowners to refinance when the property value is completely under the water. What I mean by “completely” is when your loan-to-value (loan amount divided by property value) is over 125%. Here are some general requirements for this program:


  • MUST: This requirement hasn’t changed, your existing home loan must be owned by either Fannie Mae or Freddie Mac. You can check with the following link:
    – Fannie Mae: http://www.fanniemae.com/loanlookup/
    – Freddie Mac: https://ww3.freddiemac.com/corporate/


  • PAYMENT HISTORY: If your existing home loan was a full doc loan (meaning you did submit your income/asset docs during the application process), you are allowed to have a 30 days late within 6-12 months ago. However, most recent 6 month payment history must be paid on time. Otherwise, most recent 12 months mortgage payments must be all made on time.


  • SAME LENDER: You must refinance with the same servicing lender. For example, if your home loan was originated at Wells Fargo, you must go back to Wells Fargo applying for this program.


  • GOOD NEWS! As long as your foreclosure, bankruptcy, short sales was finalized and dated prior to the loan application date, you still can refinance. There is no seasoning requirement.


  • Credit score: there isn’t a credit score requirement as long as your new payment is lower than or increase by less than 20% of existing payment.

Hurry up and apply now!

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