The HARP Deal 2.0, Can You Choose Your Own Lender?

The HARP Deal 2.0, Can You Choose Your Own Lender?  YES YOU CAN.  A common misconception regarding the HARP Deal 2.0 is that borrowers can only take advantage of the expanded refinance guidelines of the HARP Deal 2.0 if they refinance through their current servicing lender.  This is not true.

The DU Refi Plus program (Fannie Mae) and the LP Open Access program (Freddie Mac) may be offered by any lender selected by the borrower because DU and LP will automatically determine whether or not Fannie/Freddie are the owners of the loan.  This is regardless of the lender entering the casefile for the HARP deal 2.0. 

In fact, many large servicing lenders are turning away people that are not already their existing clients!

However, someone looking for a loan modification instead of the HARP Deal would be better off contacting their servicing lender.

We are still closing eligible HARP 2.0 refinances in under 30 days and Mann Mortgage is a direct seller to Fannie Mae of the DU Refi Plus program.

California property owners interested in the HARP Deal 2.0, contact Kevin Kueneke with The Lending Company today by calling (760) 500-1919 or inquire online at: kevinkloans.com

The HARP Deal 2.0 – Do These Loans Actually Close?

The HARP Deal 2.0 – The answer is YES!  We are closing Fannie Mae eligible HARP Deal 2.0 refinances.  Here are just a couple of the successful scenarios we have closed, IN-HOUSE, just within the last week alone:

• Condo with an appraisal, Loan to value 148%, refinanced from a 30 year term to a 20 year term AND reduced payments
• Detached SFR with the appraisal waiver, Loan to value 140%, refinanced from a 30 year term to a 15 year term, payments stayed about the same but the loan will be paid off 12 years sooner
• Detached SFR with the appraisal waiver, investment property, Loan to value 121%, refinanced to a lower rate 30 year term and increased cash flow on the property by over $500 per month

The Lending Company closed these Fannie Mae eligible HARP Deal 2.0 refinances all under 30 days.  Remember, you do not have to refinance your HARP 2.0 eligible loan with your current lender.  We are a DIRECT SELLER to Fannie Mae and do not have to broker out your loan like so many others.

As one of the HARP Deal 2.0 clients from above stated, “I haven’t been able to refinance my home in over 5 years.  I am so happy that I was able to refinance with The Lending Company. 

My servicing lender said it was going to take 90 days, but my loan closed in just over 3 weeks with The Lending Company and I am now saving over $500 per month.”

Remember, there had been a lot of pent up demand for the HARP Deal 2.0 refinance, which means that the processing time with most lenders is longer than a “regular” refinance.  Not with us.  We can refinance your Fannie Mae eligible HARP 2.0 loan in under 30 days.

California property owners interested in the HARP Deal 2.0, contact Kevin Kueneke with The Lending Company today by calling (760) 500-1919 or inquire online at: kevinkloans.com

The HARP 2.0 Refinance – What If I Rent It Out Now?

The HARP 2.0 Refinance – I have been asked this question several times in the last week: I bought my home as my primary residence, but now I rent it out.  Can I still qualify for the HARP 2.0 Refinance ? 

The HARP Deal 2.0 – Occupancy Does Not Matter

Assuming you meet all of the other criteria (click HERE to read the main guts of the HARP 2.0 Refinance), occupancy does not affect eligibility.

As mentioned in a previous post, The HARP Deal, Eligible Occupancy and Property Type, the home can be a:

• Primary Residence
• Second Home
• Investment Property

Will an Investment Property loan under the HARP 2.0 Refinance cost a little more?  Yep.  But if you are currently stuck at 5%, 5.5%, 6% or more, dropping down to today’s HARP 2.0 rates is probably going to help with cash flow.  Or, refinance your Fannie Mae or Freddie Mac eligible HARP 2.0 to a shorter term and lower the rate even more.

The Lending Company is currently closing Fannie Mae and Freddie Mac eligible HARP 2.0 Refinances in 30 days or less and up to 150% loan to value.  We are a direct lender and are closing Fannie and Freddie HARP 2.0 Refinances in-house.

California property owners interested in the HARP 2.0 Refinance, contact Kevin Kueneke with The Lending Company today by calling (760) 500-1919 or inquire online at: kevinkloans.com

The HARP Deal 2.0 – Is Your San Diego County Home Underwater

The HARP Deal 2.0 – Are you underwater in San Diego County California?  One of the main changes with the HARP Deal 2.0 is that loan to value (LTV) is no longer limited to 125%. 

What is loan to value?  Loan to value is your loan amount divided by the value of the home.  Previous versions of the HARP Deal capped this at 105% and 125%.  This was still not enough for many underwater San Diego County California homeowners.

In order to keep our turn times low, The Lending Company is processing Fannie Mae eligible HARP 2.0 refinances up to 150% loan to value.  And we do everything in-house – processing, underwriting, and funding.  Since we are a direct seller to Fannie Mae, we will even service your HARP 2.0 refinance loan.

Great news!  If you purchased your San Diego County California home prior to June 1st, 2009, you may qualify for the HARP Deal 2.0.  This applies to Primary residences, 2nd homes, and investment properties.

Step 1

Verify whether or not your San Diego County California home loan is owned by Fannie Mae or Freddie Mac

• Fannie Mae look up site: http://www.fanniemae.com/loanlookup/
• Freddie Mac look up site: https://ww3.freddiemac.com/corporate/

Step 2

Are you current on your San Diego County California mortgage?  Fannie Mae will not allow any 30-day late payments in the previous 12 months.  Freddie Mac will not allow any 30-day late payments in the last six months, but will allow one in months 7 to 12.

Not current?  Get current.  The HARP Deal 2.0 is going to run through December 31, 2013, so you hopefully have enough time to get your San Diego County California loan current and stay current.

Step 3

California property owners interested in the HARP Deal 2.0, contact Kevin Kueneke with The Lending Company today by calling (760) 500-1919 or inquire online at: kevinkloans.com

***IMPORTANT NOTES***

To qualify for the HARP Deal 2.0 your underwater San Diego County California home loan must:

• not be a Government loan (FHA, VA, USDA, etc)
• must be a 1st lien
• must not be a Reverse mortgage
• must not be in default

If you have an FHA or VA loan on your underwater San Diego County California home, you may already qualify for a NO APPRAISAL transaction!  Inquire with Kevin by clicking here

HARP 2.0 Refi – Do I have to refinance to a 30 year mortgage?

When refinancing a Fannie Mae or Freddie Mac loan under the new HARP 2.0 Program, do you have to refi to a full 30 year term? As mentioned in   previous blogs lenders have different Harp 2.0 credit guidelines or overlays within their program; but the simple answer is No. You may use a HARP 2.0 refinance to a lower term to save thousands of dollars at the tail end of the loan. 

Recently we originated a HARP 2.0 loan for a San Diego property owner and it made sense for them to refinance to a 20 year term. They are cutting 6 years off the end of the loan and still lowering their payment. This new HARP 2.0 loan helps with their financial goals and will help them save for retirement.

San Diego California property owners interested in the HARP Deal 2.0, contact Kevin Kueneke with The Lending Company today by calling (760) 500-1919 or inquire online at: kevinkloans.com

The HARP 2.0 Refinance, Required Borrower Benefits

One of the requirements of the HARP 2.0 Refinance is that the borrower must have at least one benefit from the transaction.

The Fannie Mae guide is more specific calling the benefit a “movement to a more stable product” namely: 

• A mortgage loan with an interest-only feature to a fully amortizing mortgage product
• An adjustable rate mortgage (ARM) to a fixed rate mortgage (FRM) which would eliminate the potential for future payment shock
• An ARM to a new ARM with an initial fixed period of five years or more, and equal to or greater than that of the existing mortgage (elimination of pending payment shock and movement to the same or longer initial fixed interest rate period)
• A 30 year fixed rate mortagge to a 15 year, 20 year, or 25 year fixed rate mortgage (accelerated amortization of principal and building of equity)

Using the HARP Deal, movement to a more stable product would not include simply an extension of the mortgage term, for example, from a 20 year fixed rate mortgage to a 30 year fixed rate mortgage.  However, this type of transaction is permissible for the HARP 2.0 Refinance IF AND ONLY IF there is a reduction in the mortgage payment.

And remember, existing subordinate liens may not be paid off with proceeds from the HARP 2.0 Refinance.  Any subordinate lien must be re-subordinated.  Also, there can be no new subordinate liens added during the HARP 2.0 Refinance transaction.

California property owners interested in the HARP 2.0 Refinance, contact Kevin Kueneke with The Lending Company today by calling (760) 500-1919 or inquire online at: kevinkloans.com

The HARP Deal 2.0, Maximum Loan To Value And Loan Amount

One of the best aspects of the HARP Deal 2.0, and the main thing that previous versions of the HARP Deal was lacking, is that the new Loan to Value (LTV) is not capped at 125% of the value of the home. 

The first version of the HARP Deal limited the new Loan to Value at 105%.  The next version of the HARP Deal capped it at 125%.  Now, there is no limit.  There is also no limit on the Collective Loan To Value (CLTV), that is, the sum of the eligible HARP Deal 2.0 1st lien plus any subordinate liens.  Keep in mind that any subordinate liens must stay in a subordiante position – they cannot be paid off with the proceeds of the new HARP Deal2.0.

The unlimited LTV/CLTV is for:

• All occupancies
• All eligible property types

The HARP Deal 2.0 maximum loan amounts are:

• Conforming ($417,000 in San Diego County)
• Conforming/High Balance ($546,250 in San Diego County for 2013 and $625,500 for Orange and Los Angeles counties)

And again, the HARP Deal 2.0 is a Rate and Term Refinance only.  The new loan amount can include closing costs and prepaid items, but cash back to the borrower is limited to $250.  Keep in mind that the Freddie Mac version does not allow eligible borrowers to finance property tax installments or annual premiums for homeowners insurance.

In order to keep our turn times low and our pricing aggressive for the HARP Deal 2.0, The Lending Company has an internal loan to value limit of 150% for our Fannie Mae eligible HARP 2.0 refinances, but an unlimited collective loan to value.  We process, underwrite, and fund the Fannie Mae eligible HARP 2.0 refinances in-house.  And we will service the loan too.

California property owners interested in the HARP Deal 2.0, contact Kevin Kueneke with The Lending Company today by calling (760) 500-1919 or inquire online at: kevinkloans.com
 

The HARP 2.0 Refinance, Does Your Loan Qualify?

San Diego CA – In order to qualify for the HARP 2.0 Refinance, your loan must have been closed and committed/delivered to Fannie Mae (FMNA) or Freddie Mac (FHLMC) prior to June 1, 2009.  Fannie’s version of the HARP 2.0 Refinance is called the DU Refi Plus.  Freddie’s version of the HARP 2.0 Refinance is called LP Open Access.

Both Fannie and Freddie have “look up” tools for your convenience:

FNMA: www.fanniemae.com/loanlookup/

Freddie: www.freddiemac.com/mymortgage

Ineligible Loans:

• Any loan currently in default
• delivered to FNMA/FHLMC on or after June 1, 2009
• government loans
• reverse mortgages
• any loan other than a 1st lien

The Lending Company is currently closing Fannie Mae and Freddie Mac eligible HARP 2.0 refinances up to 150% loan to value for a primary residence.

California property owners interested in the HARP 2.0 Refinance, contact Kevin Kueneke with The Lending Company today by calling (760) 500-1919 or inquire online at: kevinkloans.com

The HARP 2.0 Refinance, Eligible Occupancy And Property Type

One of the best aspects of the HARP Deal is that it is not just for owner-occupied properties.  Eligible properties for the HARP Deal include:

• Primary Residence
• Second Homes
• Non-Owner Occupied
• 1-4 Units
• Condominiums
• PUD’s (Planned Unit Developments)
• Manufactured Homes

Even better, Fannie Mae does not limit the number of properties on which a borrower has financing.  If the new HARP Deal loan will be on a Primary Residence, Freddie Mac has no limit either.  However, Freddie will limit the total number of financed properties to four (4) if the new HARP Deal loan will be on a Second Home or Investment Property.

The Lending Company is currently offering the HARP 2.0 refinance for Fannie Mae eligible loans up to 125% loan to value (LTV) for all occupancy types and up to 150% LTV for a primary residence.  We are doing the Freddie Mac eligible HARP 2.0 refinances up to 105% LTV for all property types and up to 150% LTV for a primary residence.

California property owners interested in the HARP Deal 2.0, contact Kevin Kueneke with The Lending Company today by calling (760) 500-1919 or inquire online at: kevinkloans.com

The HARP 2.0 Deal and the Federal Housing Finance Agency (FHFA)

The Federal Housing Finance Agency (FHFA) provides supervision, regulation and housing mission oversight to Fannie Mae and Freddie Mac. While the main objective of the HARP Deal 2.0 program is to help underwater borrowers take advantage of today’s low rates you will find another objective of HARP 2.0 is lowering the term for underwater borrowers; while it is not mandatory that you lower your term you will be enticed with lower rates if you refinance to a 10, 15, or 20 year term.

From the Federal Housing Finance Agency website (http://www.fhfa.gov/webfiles/22723/HARP%20release%20102411QandA%20Final.pdf) the following explanation and examples:

 Borrowers who owe more on their mortgages than their homes are worth may be locked into their homes for years and have fewer financial options until they pay down the loan balance. A shorter term mortgage enables such borrowers to pay down the amount they owe much faster than a traditional 30-year mortgage. Furthermore, interest rates on shorter term mortgages usually are less than on thirty-year mortgages. The lower interest rate may provide borrowers the opportunity to shorten the term of their mortgages without much change in their monthly payments, and perhaps even a reduction in that payment. Such an outcome may strengthen the borrower’s financial condition and lower the credit risk for the Enterprise that owns or guarantees the loan. A few examples illustrate how this works:

• Assume a homeowner currently has a mortgage on which he or she owes $200,000 and has an interest rate of 6.5 percent – a monthly payment of $1264. If the house is worth $160,000, the homeowner has a current loan-to-value (LTV) ratio of 125 percent.
• If this borrower refinanced into a 30-year fixed-rate mortgage with an interest rate of 4.5 percent, the monthly payment would decline to $1013. But, by refinancing into a 30-year loan, the borrower’s loan balance will not reach $160,000 for ten full years.
• If the borrower chose a 20-year loan term at a rate of 4.25 percent (mortgage rates tend to be less for shorter term mortgages), the monthly payment would be $1238 ($26 less than the borrower currently pays) and the borrower’s loan balance would reach $160,000 in five-and-one-half years.
• If this same borrower refinanced into a 15 year mortgage, assuming an interest rate of 3.75 percent, the monthly payment would be $1454 ($190 more than the current payment), but the loan balance would be below $160,000 in a bit more than three-and-one-half years.

These examples are purely illustrative and are not meant to represent interest rates borrowers should expect to pay. They do show that some HARP-eligible borrowers, depending on their circumstances and priorities, may benefit from a shorter term mortgage. Since shorter term mortgages reduce credit risk to the Enterprises because of the faster repayment of principal, there will be no added fee for borrowers that choose shorter terms.

To ensure prompt attention to all your questions for California property owners interested in the HARP 2.0 Deal, work with Kevin Kueneke at The Lending Company.  Contact Kevin today by calling 760-500-1919 or visit his website: kevinkloans.com