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The expanded HARP (Home Affordable Refinance Program), also called Obama’s Refinance Program is moving along. Bank of America, Chase, Wells Fargo and Citigroup all released statements last week in support of HARP 2.0.
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The Federal Housing Finance Agency had earlier announced the framework for the expanded HARP. Some of the guidelines include:
- The loan should currently be owned or serviced by Fannie Mae or Freddie Mac
- The loan should have closed before June 2009
- No double dipping – so if you have already availed of a HARP Refinance, you can’t do it again.
- You must not have missed any payments in last six months (since April 24) or have more than 1 missed payment in last year.
- Appraisal may not be required in some cases.
There are over 10 million homeowners underwater and this expanded HARP 2.0 will (at best) help only 10% of that. More specific guidelines are expected around mid to late November and it should be available for the homeowners at the beginning of December. I am particularly interested to see if all the banks would agree completely to the FHFA guidelines. Almost all the lenders have the tendency to have their own “overlays” on top of Government guidelines, which restrict financing to all eligible borrowers.
If you would like to know more about the program or if you would like to find out if you qualify, contact us at 408.615.0655 or [email protected]