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