HARP Eligibility Guidelines
The new HARP 2.0 (Home Affordable Refinance Program), launched jointly by the Federal Housing Finance Agency (FHFA) and the US Treasury Department set certain new eligibility guidelines for New Jersey Homeowners who had purchased homes on loans and were subsequently unable to be eligible for refinancing because of downward spiraling home values. This was a major problem in refinancing their present mortgages with lower interest rates and/or having a better mortgaged product.
With recent changes announced in HARP eligibility guidelines (now called HARP 2.0), more and more home owners will now be eligible for a HARP refinance mortgage.
Huge changes in the HARP eligibility guidelines is the elimination of the 125% loan-to-value for fixed rate Freddie Mac or Fannie Mae mortgages and the exclusion of appraisals for new properties where there is already a reliable Automated Valuation Model or AVM. These are two major HARP eligibility changes that will make more New Jersey Homeowners eligible.
Risk-based fees that discouraged borrowers from taking short-term mortgages have been eliminated and this will help those with loans valued at more than the value of their home.
This change in HARP eligibility will reduce not only interest rates but also lower monthly installment payments, creating equity faster.
The goal of the HARP eligibility changes is to help more people refinance homes and benefit from the lower mortgage rates.
HARP Eligibility/Non-Eligibility Basic Guidelines
1. Your loan must be backed by Freddie Mac or Fannie Mae
2. Freddie or Fannie should have bought your mortgage prior to June 1st, 2009.
3. Borrowers must be current on their mortgage for the last six months, and have no more than one late payment over the past year.
4. The mortgage must not have already been refinanced through HARP in the past, unless it happens to be a Fannie Mae loan that underwent a HARP refinance between March and May 2009.
5. Must Not be a USDA, FHA or Jumbo Mortgage
6. If the New Jersey homeowner refinances into a fixed-rate mortgage, no Loan-To-Value (LTV) limit applies. However, if the new loan is an adjustable-rate mortgage, the borrower’s LTV cannot exceed 105%.
*HARP Eligibility criteria are for guidance only. It is recommended that you click the link below and fill out our Quick Eligibility Form so we can confirm if you are eligible for the HARP Program.
HARP Eligibility Note: If you believe your loan type or situation is a special case, please give us a call at 201-943-6800 to discuss your options.
Determine If Your Loan Is Backed By Fannie Mae or Freddie Mac
Unfortunately, New Jersey homeowners rarely know who “owns” their mortgage loan. Normally, homeowners receive their monthly statements, and make their monthly payments, to their mortgage servicer. This is usually not the company that provided the funds originally to make the loan.
You can check “lookup” forms on the Fannie Mae and Freddie Mac web sites. However, keep in mind that these web forms are not always accurate as the address would have to be exactly the same as was recorded with Fannie or Freddie.
Click Here To Check Fannie Mae
Click Here To Check Freddie Mac
Or, you can have us check for you…
Click Here To Have Us Check Your HARP Eligibility & To Request a FREE, No-Obligation HARP Rate Quote
HARP Eligibility guidelines are still changing based on lender interpretations, check back for updates!
