HARP 2.0: Home Affordable Refinance Program

Friday, January 13 at 07:44 AM
Category: Personal Finance

HARP…yet another acronym in the financial frenzy post-mortgage meltdown.  But, this one IS a difference-maker.  HARP stands for “Home Affordable Refinance Program.”   Recently, the government released HARP 2.0, as HARP 1.0 was not proving itself effective.
 
The basic premise behind HARP was to allow homeowners the ability to refinance their mortgage loans, even if they were upside down on their loan – that is, they owed more than their home was worth.
 
The catch in HARP 1.0 was the limit on how far “underwater” you could be on your mortgage. That limit was anywhere between 105% and 125% loan- to-value.  Sadly, home price values have sunk in areas close to our markets.  Many had loan-to-values over 125%, thus did not qualify for HARP 1.0.
 
Here enters HARP 2.0, which eliminates the loan-to-value cap of 125%.  The premise being, the investor is already married to the loan, which means if the investor can improve the borrower’s ability to repay the loan, then all-the-better to help reduce the chance of a default.
 
There are a few important stipulations though:

  • Fannie Mae or Freddie Mac must own or guarantee your loan.  If you have a loan that is owned by a bank or private investor, then it would not be eligible for a Fannie Mae or Freddie Mac HARP loan. 
  • Your mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.  In other words, if you closed your loan with Arvest before May 15, 2009, you should be eligible. If you are unsure, there is a way to find out if your loan is eligible, just by contacting us.
  • You must be current on your mortgage with no late payments in the past six months or no more than one late payment in the last 12 months.
  • As with any loan program or special offer, there are other stipulations and criteria – the best advice is to contact an Arvest mortgage lender and check it out.

The bottom line: If you have tried to refinance your home loan or thought you could not refinance due to your home’s value, and you meet the basic criteria above, then it is worth a few minutes to reach out to an Arvest mortgage lender to see if a HARP loan may be available for you.

 

 

Tags: Debt, Financial Education, Home Loans, Mortgage
John and Loretta Turley on 1/17/2012 at 4:13 PM

We are inquiring about refinancing our home.  We need to know the interest rate and the closing costs.  I don't know if we qualify for a HARP loan but would like to find out.  We are now financed with GMAC.  I will be waiting to hear from you so I will know how to proceed if we are interested.

Thank You,

Loretta Turley

Dan on 1/30/2012 at 8:11 AM

Our home was financed to fannie mae during the crisis during alot of stress and agony we finally have a agreement thru bank of america ( which I believe is still part of the duo) they gave us a 2nd chance and a plan which raises the loan rate up to 6% over a period of years.  Do we qualify to refinance for a fixed rate with another bank?

Thom on 4/12/2012 at 6:27 AM

 What if your 1st mortgage is not under water but your second mortgage puts it under water, E.g. 1st mortgage LTV = 93%, add in the 2nd and it goes to 115%.???

alfred on 4/30/2012 at 7:00 PM

please answer me directly on my e-mail.

thank you!

JIM ASHCRAFT on 4/15/2013 at 6:23 PM

I WOULD LIKE TO DO A REFI ON MY HOME, A 30 YR FIXED WITH PAYMENTS AROUND 375 (I DO MY OWN TAXES AND ECT. DO YOU HANDLE HARP AND WISH TO KEEP CLOSINF NUDER 2700 CURRENT LOAN 802000 WITH EST VALUE AT 165000. ROLL OVER COST INTO LOAN SO CLOSING IS NEAR 0 . NEED ANSWER AS SOON AS POSSIBLE.

*This comment has been edited by the blog admin.

Arvest Blog Admin on 4/15/2013 at 7:01 PM

Jim - Thanks for your interest. We've forwarded your information along to Laurie Abshear, a local lender, who will contact you. You can also reach out to Laurie directly at (479) 986-3720.

Jaime Musto on 4/9/2014 at 8:03 AM
I live in Tulsa Oklahoma and need to find find out if I qualify for the harp.
Arvest Blog Admin on 4/9/2014 at 1:38 PM
Jaime - Thanks for your interest. We'll have a loan officer reach out to you at the email address you provided.
Brad Crowell on 6/7/2014 at 10:32 PM
My wife and I own a home in Bull Shoals that was a Mfg Double Wide. When it was placed it was put on a solid concrete slab with anchors welded to the frame and then underpinned with brick. This home is amazingly solid and we found it to be in better shape than a lot of stick built homes that we looked at. It has been set up as "Real Property" and is taxed that way. When we originally purchased the home we bought it with owner financing and now would like to get a new mortgage. I qualify for VA but would be agreeable to any type of conventional financing as well. We bank with you and have both a checking and a savings account with the branch in Bull Shoals. Can you work with us? Let me know through my E-mail. Thanks for taking the time to read my questions and remarks
Paul on 8/29/2014 at 10:21 PM
I went through a HAMP modification a few years back, which had my interest rate low and slowly rising. It also raised my loan from a 30 year to a 40 year loan. I would like to use HARP to get a fixed low interest rate. Can someone reach out to me? Also, I am curious about getting a second mortgage for some repairs on the property. Is that something HARP can help with, or would I need a second mortgage?
Arvest Blog Admin on 9/2/2014 at 3:08 PM
Paul - Thanks for your interest. We'll have a member of our team reach out to you at the email address you provided. We appreciate the opportunity to serve you.

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