Home Affordable Refinance Program
Freddie Mac and Fannie Mae have adopted changes to the Home Affordable Refinance Program (HARP) and you may be eligible to take advantage of these changes. If you are current on your mortgage and do not qualify for traditional refinance because the value of your home has declined, you may be eligible to refinance through the Home Affordable Refinance Program (HARP). HARP is designed to help you refinance into a new affordable mortgage. HARP is unique in that it is the only refinance program that enables borrowers who owe more than their home is worth, to take advantage of low interest rates if their home is already financed by Fannie Mae or Freddie Mac.
What exactly is HARP 2.0?
The Federal Housing Finance Agency, along with Fannie Mae and Freddie Mac, recently announced a series of changes to the Home Affordable Refinance Program (HARP). These refinance options are designed to assist borrowers who have demonstrated an acceptable payment history on their existing Fannie Mae or Freddie Mac mortgage loan, but may not have been able to refinance due to the value of their home, to get a lower more affordable. If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP.
What were the enhancements made to HARP?
The new program enhancements address several key aspects of HARP including:
- Eliminating certain fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers.
- Removing the current 125% Loan-to-Value ceiling for fixed-rate mortgages (30 years or less) backed by Fannie Mae and Freddie Mac.
- Eliminating the need for a new property appraisal in most cases.
- Second homes and investment properties will be added to the program, although different rates and fees may apply.
How do I know if I’m eligible for HARP?
In general, borrowers must meet the following requirements:
- The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
- The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
- The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
- The current loan-to-value (LTV) ratio must be greater than 80%.
- The borrower must be current on the mortgage at the time of the refinance, with no late payment in the past six months and no more than one late payment in the past 12 months.
In addition to HARP 2.0, homeowners may qualify to have their principal reduced up to $100,000 by Save Our Home AZ!
The Arizona Home Foreclosure Prevention Funding Corporation (AHFPFC), Save Our Home AZ (SOHAZ) Program was created to assist responsible homeowners avoid foreclosure on their primary Arizona residence.
- Max Program Contribution is $100,000.
- Homeowner’s loan must be owned by Fannie Mae or Freddie Mac.
- Household may not have Gross Income of more than 150% of Area Median Income (AMI) (i.e., for a family of four in Maricopa County the income limit is $98,250 or less).
- Eligible properties may not have an outstanding mortgage(s) in excess of 150% of purchase price.
- Property must be the homeowner’s primary residence.
- Current Loan to Value (LTV) or Combined Loan to Value (CLTV) must be more than 120%.
- Principal reduction target of 100% LTV after HARP 2.0 refinance.
- Assistance will be provided without a lien.
- Unsecured promissory note signed concurrently with HARP 2.0 refinance.
- May be combined with Second Mortgage Settlement Assistance up to $16,500 or 40% of outstanding second mortgage balance.
- Homeowner submits signed documents to SOHAZ by mail to: 1110 W Washington Street, Suite 310 Phoenix, AZ 85007 or fax to: 800.957.5817
- Homeowner receives Certificate from SOHAZ to take to lender.
- Lender pre-approves homeowner for HARP 2.0 refinance.
- Homeowner completes SOHAZ online Self-Assessment & Application http://www.azhousing.gov/ShowPage.aspx?ID=476
- Counselor completes credit counseling and collects any missing documents.
- Simultaneous close with HARP 2.0 refinance.
How do I know if my loan is owned by Freddie Mac or Fannie Mae?
You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:
www.freddiemac.com/mymortgage or http://www.fanniemae.com/loanlookup/
Enter your address exactly how it appears on your mortgage statement.
When will the program be available?
All lenders have been advised by FNMA that full program enhancements will be available in early March 2012. If your loan to value is at or below 125% you may qualify for the program currently available.
How long will the HARP program be available to consumers?
The program has been extended until September 30, 2017.
Does the property have to be my primary residence to qualify?
HARP applies to primary residences with LTVs greater than 80%. Similar refinancing options for second homes and investment occupancies may be available within this program.
What are the loan-to-value requirements for this new program?
Loan-to-value requirements vary based on the terms of the new loan as listed below:
- All loans under this program must have a LTV greater than 80%.
- No maximum LTV for fixed-rate mortgages with terms up to 30 years.
- Maximum LTV of 105% for fixed-rate loans with terms greater than 30 years up to 40 years.
- Maximum LTV of 105% for ARM’s with initial fixed periods greater than or equal to five years and terms up to 40 years.
Credit Union West will be refinancing loans that are currently owned by Fannie Mae (FNMA). We will be refinancing loans currently serviced by Credit Union West, as well as those serviced by other financial institutions.
Complete the form below if you would like one of our Real Estate professionals to contact you.
Credit restrictions apply. Approval and Annual Percentage Rate (APR) is based on credit qualifications and performance. Application fee and closing costs apply. Program subject to change without notice. We do business in accordance with the Federal Fair Housing Act.