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DON’T QUALIFY FOR HARP 2.0? HELP MAY BE ON ITS WAY

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UPDATED: 4/24 (see below)
The new HARP 2.0 Program officially rolled out this past week for those homeowners who have a mortgage insured by Fannie Mae / Freddie Mac.  Click Here for HARP 2.0 Info

But what about homeowners whose mortgage isn’t insured/owned by Fannie Mae, Freddie Mac, FHA, VA, USDA?  Up until now, you had no options.

Thanks to the National Mortgage Settlement those homeowners that couldn’t take advantage of current refinance programs may be able to get some assistance.  Eligible homeowners that owe more on their mortgage than their home is worth (UNDERWATER) may have an opportunity to refinance to a lower interest rate.

Here is the preliminary checklist for eligibility:

  • You own and occupy your property, and your property has no more than four separate units.
  • Your mortgage is serviced AND owned by one of these banks: BANK OF AMERICA, JPMORGAN CHASE, CITIBANK, WELLS FARGO, and ALLY FINANCIAL (formerly GMAC).
  • Your mortgage is underwater – you owe more on the mortgage than the current value of your home.
  • You have not made any late mortgage payments within the last 24 months.
  • Your current interest rate is at least 5.25%
  • The refinance would reduce your interest rate by 1/4 of a percentage point (0.25) or your monthly payment by at least $100
  • Your mortgage is not a manufactured home loan, and it is not insured by the Federal Housing Administration (FHA) or the Veterans’ Administration (VA).
  • There are no restrictions on when your current mortgage was closed.
The participating banks are required to notify homeowners that may be eligible.  However, homeowners may also contact the banks directly for information.
Keep in mind that the application process has not been finalized.

Additional Information can be found in this overview from ResponsibleLending.org HERE

4/24 UPDATE: Checkout my new post on HARP 3.0