Hal's Mortgage Blog

December 1, 2011 is the date lenders are expected to begin accepting applications for HARP 2.0

Estimates are that as many as 7 million homeowners will qualify under the expanded guidelines. This could cause a “flood” of loan applications from homeowners who are “underwater” (no pun intended).

Here’s why you might consider HARP 2.0:

· Unlimited loan-to-value (LTV). This means no matter how much you owe on your home, you can still refinance and pay-off your old mortgage
· You can take advantage of today’s low rates and not have to pay private mortgage insurance (PMI).

You will still need satisfactory and assets as well as quality credit.

There are five things to do right now to see if you qualify.

1. Make sure your loan is backed by either Fannie Mae or Freddie Mac. Here’s how to find out:a. for Fannie Mae go to http://fanniemae.com/loanlookup/ If you don’t find it there go to:
b. https://ww3.freddiemac.com/corporate/ If you can’t find it here either, then your loan is not backed by Fannie or Freddie and is not eligible.

2. What is the date of funding? Look at your closing paperwork. On the upper right hand corner of your Settlement Statement is the date you’re looking for. As long as your date is prior to June 1, 2009, you are eligible.

3. Private Mortgage Insurance. HARP 2.0 is designed to help homeowners with or without private mortgage insurance (PMI). If you have lender paid mortgage insurance (LPMI). If your mortgage statement itemizes monthly PMI, you have borrower paid and should be eligible. If your LTV was less than 80% at the time of the loan, you probably have no PMI.

4. Is your loan current? HARP 2.0 requires that you have no late payments over the last six months and no more than one 30 day late over the past year.

5. If it still looks like you’re eligible, now would be a good time to gather your paperwork:

    · Bank Statements
    · ID – Social Security/Drivers License
    · Homeowners Insurance
    · Pay Stubs
    · W-2s (2 years tax returns if self employed)
    · All documents from previous closing

If HARP 2.0 seems confusing give me a call at (615) 895-4265 and I’ll help you sort it out.