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HARP Program 2012

The new HARP Program otherwise known as the Obama mortgage program, or the Home Affordable Loan Program, has been revamped and has promise to help many underwater home owners who can't refinance due to a lack of equity.

Just keep in mind that banks are not required to honor this program, it's voluntary.  Banks aren't owned by the government, they are privately held institutions owned by stockholders.  Lenders also have the right to participate and give the HARP Program to consumers but they also can attach their own additional rules to it, also called overlays.  So hypothetically, you could have four different versions of the HARP program with four different banks.

A few highlights of the HARP program for 2012 are that may not be necessary to have any equity in your home, and FNMA and Freddie Mac have cut the strings on the reps and warrants that go with the loan.  In other words, if the new HARP program loan goes into default in the future, the bank doesn't necessarily have to worry that they have to buy back the loan which is makes it a friendlier program for lenders to offer.

Here are a few prequalifiers to the HARP Program for 2012:  You must be current on your exisiting loan and not have had a late payment (30 day delinquent or more), in the past 6 months.  The existing loan must have been bought by FNMA no later than June 1st 2009.  The loan must be owned by FNMA or Freddie Mac.  Not sure if FNMA owns your loan click here to find out.  If the home is now a rental property you still may be eligible for the HARP program.  If the property has been up for sale and is taken off the market for at least 1 day, you may be eligible for the HARP program.  Loans for less than $417k work best with HARP.  A Minimum FICO score of 640  works with the  HARP Program.  And it's worth mentioning again that after mid March, the amount of equity you have in your home may not matter with the HARP Program.

Why mid March?  Because that's when FNMA and Freddie Mac are finished updating their automated underwriting engines with the HARP program updates so that lenders no longer have to manually underwrite these loans.

Keep in mind that the lender overlays will vary, so the HARP program guidelines I highlighted above may vary from lender to lender.  The 2012 HARP program sunsets December 31st 2013 so there is a time deadline to apply.

Do you qualify?  Do you have questions?  If so click here and tell me your scenario, I'll check it out and get back to you within 1 business day.  I have a HARP program lender who is funding the loan right now.  They aren't waiting till mid March.  Click here and tell me your scenario, I would love to put my 19 years of lending experience to work for you.  Please keep in mind I can only lend in California at this time, however, the HARP program is available nationwide.

To see if you qualify for the HARP 2 refinance, click here for more information.

Best,

KW