Do I qualify for HARP?
A HARP loan looks a lot like any other mortgage. Since HARP mortgages are backed by Fannie Mae and Freddie Mac, the underwriting process will resemble that of any other conventional mortgage. There will be loan disclosures to sign and supporting financial documentation to remit. Mortgage lenders are looking for borrowers with solid incomes, good assets and quality credit scores.
Here is the full list of HARP requirements:
- The mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac
- The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009
- Borrowers must be current on their mortgage payments with no payments more than 30 days late in the last six months and no more than one late payment in the last 12 months
- Eligible property types are primary residence, one-unit second home and one-to-four-unit rental property
- The current loan-to-value (LTV) ratio must be at least 80 percent. There is no maximum LTV limit for a new fixed-rate mortgage. The maximum LTV for a new adjustable-rate mortgage is 105 percent.
- You cannot have previously refinanced under HARP (unless it was a Fannie Mae loan refinanced under HARP between March and May 2009)
5 ways to prepare for a HARP refinance
1. Ensure Fannie or Freddie backs your mortgage
2. Determine if your mortgage is old enough
3. Does your mortgage have mortgage insurance?
4. You must be current
5. Organize your HARP paperwork
Can I refinance a first and second mortgage through HARP?
In order to refinance both a first and second mortgage through HARP, you must meet two additional requirements:
- The lender that holds the second mortgage must agree to remain in junior lien position
- You must be able to meet the new payment terms of the first lien mortgage, and demonstrate your ability to do so