The Facts about HARP 2.0

While so many homeowners have been unable to weather the economic storm due to loss of income or other woes, you have made it! In spite of the knowledge that you may have little or no equity in your home, you have continued to make your monthly payments. You have been committed to your obligations, your family, neighborhood, work. You have not been ignored in your diligence. Finally the government has noticed! Like millions of people, you probably just want to save several hundred bucks a month or reduce the term of your loan from a 30 Year Fixed to a 20 or even 15 year.

Value Restrictions Lifted

No matter how much more you owe above the current value of your home, you may qualify for a fixed rate now. If you are looking to refinance into an ARM you cannot owe more than 105% of the value of your home.

Lighter Appraisals

You may qualify without the need for an appraisal at all, or just one to make sure your home is "standing". Appraisal requirements are determined on each individual loan and property, but overall the rules are softer.

Condo Friendly

The requirement that no more than 10% of the units could be owned by one person has been removed. The requirement that no more than 20% of the owners can be currently late on dues has also been removed.

Easier to Qualify

You can qualify with a FICO score as low as 620, but you may qualify with a lower score in certain cases. There are no debt-to-income limits, which means you may qualify even if your income has decreased recently.

Simpler Underwriting

You'll need to be current on your payment in the past 6 months, with no more than one late in the past year. If you filed for bankruptcy or have experienced a foreclosure, you will see more relaxed refinance rules.

Investments Welcome

Now you can refinance up to 4 second homes or investment properties under the HARP program. You can also refinance a home on which you're an "accidental landlord" - even if there is a renter living there.

Check your most recent Mortgage Note Date. If the document is dated on or before 5/31/2009 you probably qualify for H.A.R.P. 2.0 Check to find out who owns your mortgage - Fannie? or Freddie? Use these links:

http://www.fanniemae.com/loanlookup/

https://ww3.freddiemac.com/corporate/