HARP 2.0 Loans

It appears that more homeowners with little-to-no-equity are gaining an interest in refinancing. More importantly, they’re gaining confidence that there is an option. This is good news as it appears the Home Affordable Refinance Program (HARP) is gaining both momentum and attention..This seems like the right time to give homeowners an extensive guide to HARP, including who it best benefits, how to give homeowners the best shot of getting approved as well as other options to low-equity refinancing.

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To clarify one fact about HARP that many homeowners do not know, YOU DO NOT NEED TO USE YOUR CURRENT LENDER TO GET A HARP LOAN in Puyallup. Shop your HARP loan like any other refinance. The only exception to that rule is if your current loan has PMI, which can only be refinanced through your current lender at the moment. Even then, a very small handful of lenders will do a HARP loan with PMI. Also, HARP is not limited to homeowners only. You can use HARP on 2nd homes and investment properties as long as the loans are owned by Fannie Mae or Freddie Mac. In fact, they are actually perfect for investment properties. You can read more on this topic here. This contradicts the Making Home Affordable website, which states you may be eligible for HARP if “Own a one- to four-unit home that is your primary residence.” I can tell you from first hand experience that you can use HARP on 2nd homes and rental properties.

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From my experience, the loan pricing offered from current servicers is often higher than from a new HARP lender in Puyallup, Washington. However, there are times the current servicer can offer a version of HARP that no other Puyallup lender can. This can include no income verification or appraisal, which can be very helpful for some homeowners who feel they’ll have issues qualifying. Remember that other HARP lenders can loan on underwater mortgages in Puyallup, but if you think your home will appraise for less than what’s needed for HARP, using your existing servicer may be worth it even if they are charging a premium for the loan. If you think you’ll fit within income and equity requirements for the HARP lender you’re talking to, shop your loan like a regular mortgage.

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One unfortunate fact is some Puyallup loan servicers do not originate new loans. If your loan was sold to a company like Cenlar, then the special HARP options (such as PMI HARP loans) will be unavailable to you. This is because companies like Cenlar do not originate new loans, they only service the payments.

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Large banks in Puyallup also only offer HARP loans for the loans they service. If you bank with Bank of America and have a Cenlar serviced loan, Bank of America can’t help you. Look for a Fannie Mae or Freddie Mac lender like Home Front Mortgage in Puyallup who does HARP loans in your area.

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The HARP program was designed to help homeowners who are looking to refinance but have lost some to all of their equity in their home. It only applies to homeowners who currently have a Fannie Mae or Freddie Mac owned loan, but that does not mean HARP is a homeowners only choice. In fact, there’s surprisingly several opti0ns available to homeowners that may not have considered, nor did their lender give as an option. In this post, I will cover who qualifies for a HARP refinance, who best benefits from HARP guidelines, which customers do not qualify for HARP and some alternatives to consider. One EXTREMELY important detail to note is you cannot refinance under HARP if you have already applied for a modification (HAMP-Home Affordable Modification Program. If you haven’t decided which is better for you, apply for a HARP refinance first. If your HARP refinance application is turned down, you can proceed with a modification application. Attempting to modify your loan first will disqualify you from a HARP refinance.