Have you been turned down on a HARP Deal 2.0 Refinance?

Different lenders have different criteria for HARP 2.0 Refi. Many servicing lenders have guideline overlays on the original program (meaning they layer additional criteria onto the program).  Two common overlays are Loan To Value (LTV) and Credit Score restrictions. The original HARP Deal 2.0 Guidelines do not have a cap on LTV of credit scores.

Loan To Value is represented by a percentage, for example if your home was valued at $100,000 and you owed $150,000 your LTV would be 150%.

Credit scores are a reference to FICO scores, a method of analyzing your credit using an algorithm to statistically compare your current credit situation to others in an effort to predict the likelihood of you filing for bankruptcy.  The lower your number, the more likely it is you will file bankruptcy. FICO scores range from 300 to 850.

Three reasons why you should be legitimately turned down for The HARP 2.0 Deal are:

• Your loan was originated after 5/31/2009
• Your loan is not held by Fannie Mae or Freddie Mac
• You are behind on your payments or have been behind in the last 12 months

If you have been turned down for a HARP Deal Refinance you should find a lender with no credit overlays and reapply.

California property owners interested in the HARP Deal, contact Jocko Feehan with AmeriFirst Financial today by calling (760) 212-2268 or inquire online at: www.TheHARPDeal.AmeriFirst.Us

The HARP Deal, Credit Requirements

The HARP Deal, officially going live to lenders and borrowers on Monday March 19, 2012, has very generous credit requirements, namely:

***NO MINIMUM CREDIT SCORE IS REQUIRED***

Mortgage history is also far less stringent for the HARP Deal than other loan programs.  The Fannie Mae (FNMA) underwriting engine is called Desktop Underwriter, or DU.  The Freddie Mac (FHLMC) underwriting engine is called Loan Prospector, or LP.  Here are the corresponding HARP Deal mortgage history guidelines:

• Fannie DU: must be current
• Freddie LP: 0x30 late in the past 6 months and 1×30 allowed in the last 7-12 months

As far as Bankruptcy and Foreclosure guidelines for the HARP Deal, the standard Fannie/Freddie rules apply:

• To be eligible for the HARP Deal, a prior bankruptcy must have been discharged or dismissed at least four (4) years for a Chapter 7.  A shorter waiting period of 24 months is allowed for a Chapter 13 if the filing was the result of “Extenuating Circumstances”.
• If multiple bankruptcy filings, the time elapsed must be five (5) years from the most recent discharge or dismissal date.  Three (3) years allowed if the result of extenuation circumstances.
• For prior foreclosures, the time elapsed must be seven (7) years or greater, unless the foreclosure was the result of Extenuating Circumstances, then three (3) years is allowed.

California property owners, ready to see if you qualify for the HARP Deal?  Contact Jocko Feehan with AmeriFirst Financial today by calling (760) 212-2268 or inquire online at:  www.TheHARPDeal.AmeriFirst.Us