Tuesday, March 13, 2012

HARP 2.0 Update: March 1, 2012

March 1, 2012  UPDATE on the HARP 2.0 program:  Fannie Mae and Freddie Mac have named the date of March 19, 2012 when they will be rolling out their respective Automated Underwriting Systems (Fannie Mae Desktop Underwriter and Freddie Mac's Loan Prospector). 

Product guideline updates (from my 12 investors) are also expected from the middle to the end of March and that will be the time frame I can begin to take applications for the HARP 2.0 loan.  :)

I have found from my conversations with those who have contacted me that over 90% of HARP 2.0 eligible homeowners can lower their rates by more than 1% and the average current rate of those needing help is in the 5.875% to 6.5% range.  This program is going to help many homeowners who have been on the sidelines and not able to take advantage of great refinance rates available this past 3 years.   

Another noteworthy item is that over 85% of those who have called me are underwater (their homes are over 100% loan to value).  The current loan to value needs to be at least 80% loan to value to be eligible for the HARP 2.0 loan and there are NO loan to value limits (my highest loan to value to date has been 200%).

Quick Overview of HARP 2.0: The loan must be currently insured or owned by Fannie or Freddie and 2nd homes and investment properties are also eligible. If the current loan doesn't have PMI, it will not be required on the new loan, regardless of the current loan to value.  If the current loan has PMI, the new loan will be "re-insured" and will also have PMI.  2nd mortgage holders (Home equity loan or line lenders) so far to date, have agreed to subordinate (remain in 2nd position) to a new HARP 2.0 loan for those homeowners who have contacted me.

Call me with additional questions and I look forward to helping you this month!  It looks like it is finally almost here!  :)

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