HARP Refinance

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2022 HARP Refinance 2.0 Extended: Homeowners Get Additional Time To Refinance

If you are still one of the thousands of homeowners whose mortgage loans are underwater, you can attempt to get relief has HARP Refinance 2.0 has been extended through 2022.  2022 HARP Refinance 2.0 or the Home Affordable Refinance Program is officially extended per the statement released by the Federal Housing Finance Agency.  Even thought a lot of people have taken advantage of using HARP to refinance their upside-down mortgages (mortgages where there is more owed than it is worth) it was still determined that 2022 HARP was necessary.

If homeowners wasted time and thought they were out of time to refinance they now can thanks to 2022 HARP Refinance 2.0.  Quite frankly, a lot of borrowers were holding out hope that their properties would gain enough value to offset the mortgage owed, but the values just haven’t increased that much yet.

2022 HARP Refinance 2.0 Still Successful
HARP Refinance

Since the launch of HARP back in 2009, this has been a major hit amongst homeowners who realized were in trouble and were given a lifeline.  Over 3 million homeowners so far have taken advantage of HARP and it is expected that 2022 HARP Refinance 2.0 will assist thousands more as there isn’t a guarantee that this program will be extended again.  Originally HARP Refinance 2.0 was scheduled to expire on December 31, 2013 but has now been extended 3 times.  Under 2022 HARP Refinance 2.0 the borrower can benefit in many ways including: Lowering monthly payment, reducing interest rate, securing a fixed-rate mortgage (for borrowers currently in adjustable-rate mortgages or ARMs), building equity faster (refinancing to a shorter term), and lower closing costs since an appraisal is not required.

2022 HARP 2.0 Program Features

There are many program features associated with 2022 HARP Refinance 2.0 and additional information can always be found www.harp.gov.

  •  No underwater limits
  • Borrowers will now be able to refinance regardless of how far their homes have fallen in value. Previous loan-to-value limits were set at 125 percent.
  • No appraisals or underwriting
  •  Most homeowners will not have to get an appraisal or have their loan underwritten, making their refinance process smoother and faster.
  •  Modified fees
  • Certain risk-based fees for borrowers who refinance into shorter-term loans have been reduced.
  • Less paperwork
  • Lenders now need less paperwork for income verification, and have the option of qualifying a borrower by documenting that the borrower has at least 12 months of mortgage payments in reserve.
  • Program Deadline
  • The end date to get a HARP refinance is December 31, 2022.

2022 HARP Refinance 2.0: Conclusion
2016 HARP Refinance

As the time is ticking on the year 2022, it might be your last chance to refinance under 2022 HARP Refinance 2.0.  This is a very streamlined program with minimal documentation and no appraisal needed.  You can even refinance a property that isn’t your primary residence like a 2nd home or investment property.  The property that you wish to refinance only has to fall under the following categories:

  • Mortgage is owned by Fannie Mae or Freddie Mac
  •  Your loan must have been originated on or before May 31, 2009
  •  Your current loan-to-value (LTV) ratio must be greater than 80%
  • You are current on your mortgage, with no 30 day+ late payments in the past 6 months no more than one late payment in the past 12 months.

So if you are looking for an experienced lender with processing a refinance through 2022 HARP Refinance 2.0 you are in the right place.  I am available any time day or night at 888-900-1020 or feel free to visit my website for all your information needs www.loanconsultants.org.

2022 New Underwater Refinance Program: Goodbye HARP, Hello New Program

IF you were currently prevented from using the Home Affordable Refinance Plan or HARP due to your high loan-to-value (LTV) ratio, you may be in business come the end of this year.  Even given the recent increases in mortgage rates since the Presidential Election, Freddie Mac is still predicting that 2017 will end with mortgage rates in the 4’s.

Given these thoughts the Federal Housing Finance Agency or FHFA has a 2017 New Underwater Refinance Program that will take the place of HARP moving forward.  Around October 2017, this new program will be rolled out as determined by Fannie Mae and Freddie Mac who oversee the FHFA.  With this new “High-LTV” program, it will be similar to HARP, but it will do its best to remove some of the restrictions that are currently preventing homeowners from refinancing in the first place.  With rates predicted to stay lower over the next year, this could mean the 2017 New Underwater Refinance Program can have a high rate of success and usage by the borrowing public.

2022 New Underwater Refinance Program: HARP

Recently, the Federal Housing Finance Agency or FHFA, came out and extended the existing HARP program until September 30, 2017 at which time this program will likely be gone forever and the 2017 New Underwater Refinance Program will take its place.  HARP was originally debuted in 2009 after the Great Recession and housing market collapse when home prices tanked and a lot of borrowers owed a lot more than their homes were worth.  As rates were declining HARP was designed to allow for the refinance of these “underwater” loans when under normal circumstances there would be no way to refinance by typical refinancing guidelines.

HARP received a lifeline to even be an active program in 2022 as it was originally scheduled to end 12/31/2022.  When looking at the data and seeing that there were still more than 250,000 eligible borrowers to take advantage of HARP, FHFA decided it would be wise to extend the program just a little longer until September 30, 2017.  If you still don’t qualify for HARP currently, this is where the 4th quarter of 2017 will help you out with the 2017 New Underwater Refinance Program.

2022 New Underwater Refinance Program: New Program Details
New Underwater Refinance Program

Even though there isn’t a name for the 2022 New Underwater Refinance Program, it will definitely be rolled out and the goal is still to get borrowers refinanced with high LTV just like HARP tried to do but without all the restrictions all while allowing them to take advantage of low interest rates.  The main enhancement to this new program is that it can be used multiple times unlike HARP which was limited to just a one-time use.  There will also be no cutoff date for when your original loan was originated.  Under HARP’s guidelines, it was required that loans were originated prior to June 1, 2009, with the new program, this is not the case and everyone is available.  This will give access to this program to a lof of individuals who purchased or refinanced a home from the 2nd half of 2009 to present day.  There will be some eligibility guidelines associated with this in order to proceed with a refinance under this program and it is as follows and better loan terms must be had:

  • Shorter Loan Term
  • Lower Interest Rate
  • Reduction in Monthly Principal and Interest
  • Fixed-Rate Mortgage to take the place of an ARM or Adjustable-Rate Mortgage

There are also some additional eligibility requirements for the 2022 New Underwater Refinance Program and there won’t be any loan-to-value restrictions for this new program, however, for Freddie Mac loans there must be 95% LTV and Fannie Mae is requiring a 97% LTV at the time of refinance.  Even though the formal guidelines have not been released, this LTV guideline is expected to be included.  Another key item here is that a HARP loan cannot be refinanced, but it can be refinanced if the borrower has refinanced to a Fannie Mae or Freddie Mac since their HARP loan.  Another guideline is needed:

  • Must have made 12 on-time mortgage payments
  • No more 30-day late pays in the past 6 months
  • No more than 1 30-day late in the past 12 months

Another rumored guideline which is extremely beneficial to borrowers is that this process may only require limited documentation.  Now it is not known what exactly is meant by this, but you could see getting this refinance done without W2s, tax returns, and bank statements.  With this not being set in stone it is prone to change, but we shall see once the full regulations have been released.

2022 New Underwater Refinance Program: Stay Tuned

As we move on throughout the year, we will definitely be keeping an eye on this and doing our best to get borrowers through this new refinance program.  If you’d like to give me a call, we can go over your current situation and plan on getting you refinanced under this new program if you aren’t currently HARP eligible.  However, if you are HARP eligible, we can take care of you as well, just give us a call as we are available 24-7 to help you out.  Days, nights, weekends, holidays don’t matter to us as we will be available when you need us.  Reach out today at 888-900-1020 and we can get a customized plan and loan ready for you.  We look forward to hearing from you soon!