HARP For Underwater Mortgages Refinance Guidelines
This guide on HARP for underwater mortgages is an older blog from when the Home Affordable Refinance Program was popular. HARP for underwater mortgages no longer exists. This guide on HARP for underwater mortgages was updated and edited for archival services for viewers who want to research HARP for underwater mortgages. In the following sections, we will cover HARP for underwater mortgages. John Strange of Non-QM Mortgage Lenders explains the HARP for underwater mortgages as follows:
Underwater homeowners who were feverishly looking for ways to refinance their homes had the opportunity to do this through the HARP for underwater mortgages refinance program. The Home Affordable Refinance Program, or HARP, allows homeowners with underwater mortgages to refinance their mortgage without income documentation, no appraisal, and bad credit.
HARP has been extended a few times and is set to expire on December 31st, 2018. However, with interest rates escalating and at the highest rates since 2008, it is doubtful that many homeowners can take advantage of this loan program by December 31st, 2018. Still, some homeowners with rates in the 7% range and higher can take advantage of the Home Affordable Refinance Program.
What Is HARP For Underwater Mortgages
The first step in determining eligibility was to see whether or not Fannie Mae or Freddie Mac owned their loan. Homeowners could check whether Fannie or Freddie owned their loan by going directly to Fannie and Freddie’s website. To be eligible for HARP for underwater mortgages, homeowners needed to see if their home loans were owned or serviced by Fannie Mae or Freddie Mac. Like many things in life, these databases are not perfect.
There were thousands of homeowners who could not find their property addresses on Fannie Mae and Freddie Mac’s databases. If homeowners were unable to find a match, they did not qualify. This does NOT mean that a certain loan is not a Fannie Mae or Freddie Mac. It also does not mean that you will not have other options.
Fannie Mae and Freddie Mac have imperfect databases; data errors can sometimes cause elusive matches. For example, if homeowners live on 123 Happy Cir and enter their address as “cir” and not “circle,” they may get a different result from one of the two databases. Also, there is talk currently of a new government program that goes further than the HARP program and addresses loans NOT owned by Fannie Mae and Freddie Mac.
HARP Eligibility Requirements
Homeowners who believed Fannie or Freddie owned their current mortgage but you couldn’t seem to find it on the two sites, they had to contact the following number: Contact 1- 888-709-4555 and be advised of their options.
HARP for underwater mortgages was Fannie Mae and Freddie Mac’s version of FHA and VA streamline refinance mortgages.
In most cases, the servicer was NOT the owner. This meant that if borrowers paid Wells Fargo, for example, each month, they were their servicer…not necessarily the owner of their loan. This was a long and frustrating process, but the light was at the end of the tunnel.
What Happened To HARP For Underwater Mortgages
Home Affordable Refinance Program was for homeowners with underwater mortgages. However, many home prices nationwide have increased substantially in value. HARP was extended until December 31st, 2018. Will there be another extension of the Home Affordable Refinance Program? You can expect a refinancing frenzy in the coming months due to rates skyrocketing in the past 18 months, says John Strange, a senior loan officer at Non-QM Mortgage Lenders.
Fannie Mae and Freddie Mac eventually ended the HARP for underwater mortgages due to home prices skyrocketing pass the 2008 values. HARP for underwater mortgages as well as FHA and VA streamline refinances came to an abrupt halt due low rates. However, mortgage rates started increasing to reach historic highs.
Fannie Mae and Freddie Mac did not extend HARP because home prices increased nationwide. Fannie Mae launched a new loan program effective January 1st, 2019. Fannie Mae’s new mortgage program is a streamlined refinance mortgage program for conforming loans. Alternative refinance loan program on conforming loans. Requires 95% loan-to-value, and homeowners cannot qualify for other conforming refinance programs.
Conventional Streamline Refinance Mortage Program
Conventional loans closed on or after October 1st, 2017, were eligible for qualification. To be eligible for the conventional streamlined refinance mortgage program, homeowners needed to have made 15 timely monthly payments on their home loans.
Homeowners who have closed their conventional loan after September 2017 would be eligible for a higher loan-to-value refinance mortgage effective January 2019.
Homeowners who do not have Fannie/Freddie-owned mortgages can qualify for 97%. Conventional loan programs permit homeowners to refinance loans with little equity on rate and term refinances. HARP was an extremely popular and successful refinance loan program for homeowners.
