HARP 2.0 Refinance Program Prevents Homeowners Abandoning Homes

This article on harp 2.0 loans compiles a small list of salient features. Home Affordable Refinance Program is special because it provides an opportunity to refinance an unaffordable mortgage. This is especially true for homeowners whose mortgage balance is greater than current value of home. It is virtually impossible to refinance without assistance of HARP 2.0.

 

HARP 2.0 refinance qualifications under loan program

 

Due to the crash of realty values across the country, many homeowners landed into serious trouble. Further, certain states, regions or areas saw an extreme of price crash that pushed millions of American borrowers with home mortgage loans underwater. As people started abandoning their homes to avoid mortgage repayment, the realty market place fell into dangerous financial waters.

 

Government decided to introduce an HARP 2.0 Program to stop people from abandoning their homes. Borrowers whose homes were grossly underwater breathed a sigh of relief, as it was virtually impossible to refinance without assistance of harp 2.0 loans. Homeowners with underwater mortgage have a balance that is greater than current value of their homes. Introduction of HARP 2.0 Program has allowed borrowers to refinance into affordable mortgage with lower monthly mortgage payments.

 

HARP 2.0 highlights key necessities including no limit on maximum loan-to-value (LTV) ratio or appraisal report requirement, more flexible borrower qualification requirements and no income limit. We review a list of pros for harp 2.0 refinance program below. Borrowers should evaluate these positives of HARP 2.0 and determine if it could be right refinance option for them.

 

We at Mortgagerefinancebadcredit maintain an extensive digital database platform where specialized lenders match customer requirements. Homeowner’s application for harp 2.0 loan program is matched and routed to specialized lenders listed in our digital database platforms. Homeowners and homebuyers with excellent or less than perfect credit have fair chance of approvals through online resources.

 

Keeping Your Home with Harp 2.0 Refinance for Financial Relief. Get Started with Free Quotes!

 

HARP 2.0 Pros

 

No Maximum Loan-to-Value (LTV) Ratio

Homeowner borrowers can now benefit from government declared no maximum LTV ratio rule. It does not matter anymore if your mortgage balance is greater than value of property.

 

Conventional mortgage refinance strictly apply a maximum LTV ratio of 97%. Borrowers new mortgage principal amount cannot exceed 97% of fair market value. This pre-condition excludes underwater homeowners to refinance. It does not matter whether they can afford the new monthly mortgage payments.

 

On the other hand, harp 2.0 refinance program eliminates application of maximum LTV ratio rule. Borrowers can refinance irrespective of current property value. Only those currently living in their homes can use fixed rate mortgage for possible refinance. People can refinance their non-owner occupied properties with ARM, having maximum loan to value ratio of 105%.

 

No Appraisal Report Required

Borrowers are then not even required to obtain a new property appraisal report. Lenders can access a reliable property value estimate from Fannie Mae or Freddie Mac. Saves significantly on mortgage costs because of no appraisal and related processing fees. Speeds up closing process by several weeks so homeowners can benefit. This is according to lender discretion.

 

More Flexible Borrower Qualification Requirements

New program guidelines eliminates borrowers’ credit scores and debt to income ratio as harp 2.0 qualifications. Credit challenged consumers with unaffordable monthly mortgage payments benefit too. Homeowners with suddenly reduced income or higher debt burden get timely financial help. Lenders no longer need to verify borrowers’ income. Lenders are allowed to ask for credit reports and income verification proof for internal guidelines only, not for approval.

 

No Borrower Income Limit

Harp 2.0 loan program does not apply a maximum borrower income limit to determine eligibility. More homeowners will be encouraged to refinance their underwater mortgage instead of abandoning their property.

 

Applies to Investment Properties

New HARP 2.0 Program includes both owner occupied and non-owner occupied one-to-four unit properties. It also includes single unit second or vacation homes.