Harp 2.0 – Miami Real Estate Attorney Blog

Harp 2.0 Mortgage Refinance Real Estate Option

Today we want to talk to you about the Harp 2.0 refinance real estate option that could save you lots of money. The Home Affordable Refinance Program or Harp 2.0 is a government program that allows home owners of both primary residence and investment properties to refinance their properties and take advantage of some of the very attractive low interest rates that are present today. It was started by Federal Housing Finance Agency to help those homeowners who were drowning in debt by refinancing, even if they owed more than what the house is worth. Please be aware that this government program expires in 2017, so if you are interested in refinancing your property it’s something you should take advantage of now. Some of the requirements to be eligible for HARP 2.0 are that you had to have sold your mortgage to either Fannie Mae or Freddie Mac by June 1, 2009.

You must have no late payments in the last 6 months, no less than 1 late payment in the past 12 months, you must be up to your current mortgage payment along and this must be your first refinance through HARP.

Along with the HARP eligibility requirements, lenders may have their own. Lenders require you to provide proof of income, and some even require a minimum credit score to qualify. Many banks like Bank of America, Chase and Wells Fargo are experience delays in the application process due to the sheer volume of applications. So as I have said before, if this is an attractive option for you, you will want to start the process immediately.

If you have any questions about Harp 2.0 please feel free to email or call our office and we will be happy to explain it to you further.

Accidental Landlords Take Advantage of HARP 2.0 to Re-Finance Their Investment Properties and Save Thousands of Dollars

As we previously discussed, the Harp 2.0 program is a government sponsored program intended to help many struggling homeowners re-finance their homes. An often overlooked aspect of Harp 2.0 is that it is also intended to help accidental landlords re-finance their investment properties and help them save thousands of dollars.

An “accidental landlord” is someone who purchased a new primary residence, but was unable to sell their prior primary residence.

Under this scenario, the initial primary residence is converted into an investment property. In other words, after you purchased your new home you could not sell your old home. As a result, you started renting the old home and became an “accidental landlord.”

The question that is often asked is under this scenario would the “investment” home/property be eligible to re-finance under Harp 2.0?

If the homeowner can qualify to re-finance under Harp 2.0, then there is a good chance that the converted investment property may also qualify. And if it qualifies, then that could potentially save the accidental landlord thousands of dollars over the life of the loan.

There are no doubt obstacles that need to be overcome in order for an accidental landlord to qualify to re-finance under Harp 2.0. But generally speaking, in order to qualify the homeowner must be current on their mortgage, with no late payments exceeding 30 days in the last six months and no more than one late payment in the last year. Under the initial Harp guidelines, loan to value limits were capped at 125%, but Harp was modified (Harp 2.0) to remove those caps and now there are no “underwater” limits. On the other hand, however, the current loan to value ratio must be greater than 80%.

But if you want to take advantage of this program you better hurry. The program is currently set to expire on December 31, 2015.

If you do qualify, the potential savings could be significant. Of course, if you do qualify, and decide that re-financing under Harp 2.0 will save you thousands of dollars, then make sure you follow these seven tips to save money on closing costs. And, of course, don’t hesitate to contact our office to discuss your options further.

Is It Time To Re-Finance Your Home – Even if You Are Still Underwater on Your Mortgage?

Today may be the best time in a generation to re-finance your home. Mortgage rates continue to hover at historic all-time lows. As a result, today’s historically low mortgage rates make this the best time to re-finance your home.

More importantly, the Harp 2.0 program is a government sponsored program intended to help many struggling homeowners re-finance their homes even if they are underwater. Individuals that are “underwater” on their mortgage are eligible to participate in the Harp 2.0 program and take advantage of today’s historically low interest rates.

Specifically, Harp 2.0 is a program that allows homeowners who are “underwater” on their mortgages to refinance. In particular, it’s geared toward people who can’t find assistance elsewhere. Put differently, the program is attempting to help individuals who don’t qualify for a traditional refinance because their homes are underwater. This is the only program that allows such individuals to refinance their homes.

If you want to learn more about this program, and how it can help you save money, please contact our office today. But in order to qualify for the program, your mortgage must:

• Be owned or guaranteed by Freddie Mac or Fannie Mae
• Have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009
• Not have been previously refinanced under HARP, unless it is a Fannie Mae loan that was refinanced under HARP between March and May of 2009.

You must also be current for the last 12 months on your mortgage, and you should have a credit score of at least 620. Homeowners must also be able to prove their income and assets as these loans are “full docs” in order to qualify for a reduced payment.

But the potential savings could be significant. You owe it to yourself to try and save money on that underwater mortgage by taking advantage of today’s low interest rates.
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You should contact us today to find out more about this program and assess your options regarding potentially re-financing your home.