What is the HARP 2.0 Mortgage Refinancing Program?

The HARP 2.0 plan is a federal home refinance program that permits qualified homeowners with “underwater” mortgages to take advantage of lower sustainable home mortgage interest rates for reducing monthly payments drastically and save practically hundreds of precious dollars annually. Quick way to know about harp 3.0 mortgage refinance online.

Know How HARP 2.0 Program Requirements are Different from HARP 1.0

There are two major differences between the HARP 1.0 and mortgage HARP 2.0. Unlike the HARP 1.0 plan, the new HARP 2.0 program allows homeowners, who have mortgage insurance, to qualify for home refi loans. Secondly, new lenders are not responsible for any kind of financial or underwriting frauds, which may have taken place during the first or original housing loan.

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The Revamped HARP 2.0 Mortgage Refinance Loan Program Pros Explained

Although at this juncture, one can only guess whether the HARP 3 Program will ever be a reality, chances is that the following borrower types may actually benefit if implemented.

No LTV restrictions – One of the salient features of HARP 2.0 requirements are that the LTV limits have been totally done away with. As a result, more borrowers, who owe more their homes than their actual worth, could be eligible for home refinancing.
No home appraisals – Since LTV requirement no longer applies to HARP 2.0 program, there is no need to undertake home appraisals. This enables saving additional money and even reduces the time required for closing the deal as the application procedure is fully streamlined.
Flexible requirements – The guidelines to refinance with HARP 2.0 are more flexible than those that applied to the HARP 1.0 plan. There are no minimum credit score or DTI ratio conditions which need to be complied with and thus, process is streamlined.
No income limits apply – Other mortgage refinance programs use maximum income limits for determining borrower eligibility but the harp 2.0 mortgage does not have any such criteria for approving refinance applications. Consequently, underwater homeowners with lower incomes also have the chance of getting approved.
Investment properties qualify – Investment property can qualify for HARP 2.0 mortgage program. Earlier, only owned homes, which were primary residences with 1 to 4 units, were eligible for financial help from the federal government, single unit second or vacation homes did not qualify.

Refinance With Harp 2.0 Mortgage Refinance Plan: Basic Requirements

Although LTV and DTI requirements have been removed for HARP 2.0 eligibility, the original home mortgage must be a Fannie Mae or Freddie Mac insured loan. Bedsides, applicant has to be current on existing monthly mortgage payments for the last 12 months to stand any chance of getting approved for new harp 2.0 refinance program.

Harp 2.0 Mortgage Refinance Program: Who All May be Eligible for Refinancing Homes?

To get benefitted with the new government initiative, some basic HARP 2.0 eligibility requirements have to be satisfied by probable applicants. These are as under:

Original home mortgage loan must be owned or guaranteed by Fannie Mae or Freddie Mac.
The mortgage in question must be sold to Fannie Mae or Freddie Mac before May 31, 2009.
Borrower must not have refinanced with HARP previously unless it was a Fannie Mae or Freddie Mac loan, which was issued between March to May 2009.

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Determine If New Harp 2.0 Mortgage Refinance Loan Program Right for You

The HARP 2.0 refinance is a revamp of the erstwhile Home Affordable Refinance Program, which was put into effect by the Obama administration to help financially struggling homeowners who were finding it difficult to deal with high interest rate home mortgage debts resulting from the bursting of the real estate bubble.

HARP eligible borrowers could refinance their homes to substantially lower interest rates even if they owed more on homes than their actual market worth. Unfortunately, the HARP guidelines were stringent and could not reach out to millions of homeowners across America with underwater mortgages. Hence, the HARP criteria were moderated.

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Home Affordable Refinance Program HARP 2.0: Benefits

With LTV restrictions removed, more number of “underwater homeowners” can reap benefits of federal government assistance.
As home appraisals are not required in most cases, closing costs get lowered.
There is no need to buy Private Mortgage Insurance or PMI for HARP 2.0 refinancing.
It is possible to remove name of an ex-spouse from the loan.
Credit status is not an issue to get approved for the HARP 2.0 program.
Primary residences, second homes and investment properties can be refinanced using HARP 2.0.
Interest rates and fees for HARP 2.0 loans could be among the lowest in the mortgage industry.