New Home Affordable Refinance Program (HARP)

The Federal Housing Finance Agency has announced the following changes to the Home Affordable Refinance Program (HARP).

The press release states the program will include:

Eliminating certain risk based fees for borrower who refinance into a shorter term mortgage and lower fees for other borrowers
Removing the current 125% LTV ceiling for fixed rate mortgage backed by Fannie Mae and Freddie Mac
Waiving certain representations and warranties that lenders commit to in making loans owned or guaranteed by Fannie or Freddie
Eliminating the need for a new property appraisal where there is a reliable AVM estimate provided by Fannie or Freddie
Extending the end date for HARP until 12/31/13 for loans originally sold to Fannie or Freddie on or before 5/31/2009
Desktop UW changes won’t occur until first quarter of the year. Until that time the LTV restriction is still in place only under 125% LTV is available right now.
Mortgage payment history of 0x30 in the last 6 months and no more than 1×30 in the last 12 months
No re-harping (once you have refinanced under HARP you cannot refinance again as a HARP)
Any subordinate lien must be re-subordinated
Any lender is allowed to offer HARP – the borrower does not have to go back through original lender
There will truly be no ceiling for the LTV or CLT for fixed rate loans. ARM loans will remain at 105%

If your current loan was originated prior to May 31, 2009- call your lender or any lender to see if your loan qualifies for this special refiance program.
First Place Bank is participating in this special refinance program.


About lizschneider66

Mortgage consultant with over 19 years experience. First time buyers, move up buyers, construction, FHA/VA, Jumbo loans, investment property purchases, & refinances- I will find the solution to financing the American dream of homeownership! Subscribe to my blog and never miss any mortgage industry news. I am Vice President of the North Coast Building Industry Association, Lorain County Association of Realtors, Working Women Connection and Womens Council of Realtors.
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