2325 E. Camelback Road #100
Phoenix, AZ 85016
Arizona's #1 FHA Lender (2014)
NMLS #221602 | FIMC NMLS #2289
The HARP 2.0 refinance program that was rolled out a few months back has gained some traction in helping home owners refinance their upside down properties into more manageable payments. However, there are some cracks in this program. Not all those able to be served are able to utilize this program unfortunately. If a borrower’s current mortgage is not owned by Fannie Mae or Freddie Mac or taken out prior to June 1st 2009, they are not eligible. What is more frustrating is that more than 30% of all mortgages are not owned by either of these two giants so those borrowers are out of luck. Further, we as lenders must run a borrower’s application and credit profile through Fannie or Freddie’s decision engine and it must grant approval, and in not all cases it does. This is particularly true of investment property types or those with a less than stellar credit history, but still meet “guidelines.”
Now I do not mean to sound sound bearish on the subject because the program is helping a lot of borrowers reduce their monthly expenditure. We are successfully closing these refinances daily, it is just unfortunate that not everyone that should be able to refinance is eligible. It really comes down to the specific scenario of the borrower but the key points are these:
– Rate and Term (no cash-out) refinance of existing Fannie Mae or Freddie Mac owned loans delivered prior to June 1, 2009.
Fannie Mae Look-Up Tool: http://loanlookup.fanniemae.com/loanlookup/
Freddie Mac Look-Up Tool: https://ww3.freddiemac.com/corporate/
-Owner Occupied, Second homes and Investment properties are permitted.
-New loan must provide a benefit to the borrower in the form of a reduced P&I payment of at least 5% or more stable program (i.e. Arm to Fixed, Reduced Term, Taking out of Balloon or Interest Only)
-A borrower may be removed or added from the new loan subject to additional requirements
-Must have no 30 day lates onthe mortgage being refinance within past 6 months
For more information on ther HARP 2.0 mortgage refinance program, please contact my team at 480-626-2202 or apply online at www.tobiasteam.com!