If you choose to roll in your closing costs instead of paying for them a closing your loan amount will increase by that amount. But by skipping up to (2) mortgage payments in some cases, receiving escrow money back after closing, and the savings per month your break-even on the streamline is realized very quickly.
Will my loan amount increase by doing a HARP 2.0 refinance?
No the program is designed to help you lower your mortgage payment or shorten your mortgage term.
Can I do a cashout or pay off debt with HARP 2.0?
In some cases it may be possible to skip (2) mortgage payments as part of your HARP 2.0 refinance. It will depend on when in the month you close your loan.
Is it possible to skip (2) mortgage payments?
If you currently have mortgage insurance than that exact amount will be transferred to the new loan. If you do not have mortgage insurance it will not be required on the new loan.
Will I need mortgage insurance?
No, in most cases an appraisal will not be required. Once you apply with your lender they will let you know if you qualify for an appraisal waiver or not.
Is an appraisal required?
Yes you can. A HARP 2.0 will allow you to refinance without an appraisal.
There is little to no equity in my home, can I still refinance?
In order to qualify you cannot have any late payments over 30 days in the last 12 months.
Can I refinance if I was behind on my payments?
No, currently there are programs that can refinance you regardless of your loan to value. In other words, it does not matter how far you are upside down as long as you qualify you can refinance into a lower payment.

Is there a limit to how far I can be underwater?

No, the websites only reflect if your mortgage is currently owned by Fannie or Freddie, however that does not mean that your mortgage is automatically qualified. Please check with your lender to insure you are eligible.

It looks like Fannie Mae or Freddie Mac owns my loan, I’m I eligible?

Ask you lender they will be able to tell you right away or you can check the HARP 2.0 eligibility section of our website to find out.

How do I find out who owns my loan?

  • Copy of driver’s license
  • Copy of social security card
  • Copy of mortgage statement
  • Copy of your mortgage note
  • Copy of most recent (2) paystubs
  • Contact information for insurance agent 
What are the documents I will need?
  • The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae
  • The mortgage must have been endorsed on or before May 31, 2009
  • The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009
  •  
    The borrower must be current on the mortgage at the time of the refinance, with a good payment history in the past 12 months 
What Are the Eligibility Requirements?
  • No equity required
  • No appraisal required
  • No mortgage insurance
  • Reduced documentation
  • Flexible underwriting guidelines
  • Subordination of 2nd mortgage OK
  • Lower closing costs than other loans
  • Build equity faster by shortening your term
What Are the Advantages of HARP 2.0?

The good news is that if you are the eligible for the HARP program it does not matter how underwater you are on your mortgage, you can refinance into a much lower payment. In many cases without having to bring any money to closing or having to get an actual appraisal completed.

Take for example a house that was purchased in 2005 for $250,000 but is now worth $190,000 due to the housing market correction. Further, assume the homeowner owes $230,000 on the mortgage. In this scenario, the loan-to-value ratio would be 123%, and if the homeowner wanted to refinance, he would have to bring a significant amount of cash to closing to get his mortgage “above” water. Since lenders require a loan to value of 80% in order to avoid mortgage insurance that means the homeowner would have to come

up with $78,000 at closing in order to refinance into to a lower rate!
Why Are HARP 2.0 Loans So Great?

The Home Affordable Refinance Program (HARP) is a federal program rolled out by the Obama Administration in March of 2009 to help underwater and near-underwater homeowners refinance their mortgages. It was designed to help responsible homeowners who are current on their mortgage payments take advantage of low rates, even though the value of the home has declined due the recent housing crisis. If you owe more than your home is worth the HARP 2.0 program can help by refinancing you into a much lower payment without having to pay extra principal or mortgage insurance (PMI).

HARP 2.0 Refinance

Currently the minimum credit score is 600.
What is the minimum credit score to qualify for HARP 2.0?