If you are current on your Fannie Mae mortgage and have been unable to obtain a traditional refinance because the value of your home has declined, you may be eligible to refinance through the Home Affordable Refinance Program (HARP). HARP is designed to help you refinance into a new, affordable, more stable mortgage. HARP is unique in that it is the only refinance program that enables borrowers, who owe more than their home is worth, to take advantage of low interest rates if their home is already owned by Fannie Mae. Arizona State Credit Union is currently participating in this program and has already helped hundreds of members with negative equity by refinancing their Fannie Mae (FNMA) home loan.
What exactly is HARP 2.0?
The Federal Housing Finance Agency, along with Fannie Mae, recently announced a series of changes to the Home Affordable Refinance Program (HARP) in an effort to attract more eligible borrowers who can benefit from refinancing their home mortgage. These refinance options are designed to assist borrowers who have demonstrated an acceptable payment history on their existing Fannie Mae mortgage loan, but may not have been able to refinance due to the value of their home, to obtain a lower payment or move to a more stable product.
How do I know if my loan is owned by Fannie Mae (FNMA)?
By using the link below, you can find out if your loan is currently owned by FNMA: http://www.fanniemae.com/loanlookup/. Be sure to enter your address exactly how it appears on your current mortgage statement.
What enhancements were made to HARP?
The new program enhancements address several key aspects of HARP including:
Eliminating certain risk-based fees (closing costs) for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers.
Removing the current 125% loan-to-value ceiling for fixed-rate mortgages (30 years or less) backed by Fannie Mae.
Eliminating the need for a new property appraisal in most cases.
Second homes and investment properties will be added to the program, although different rates and fees may apply.
How do I know if I'm eligible for HARP?
In general, borrowers must meet the following criteria:
The mortgage must be owned or guaranteed by Fannie Mae.
The mortgage must have been sold to Fannie Mae on or before May 31, 2009.
The mortgage cannot have been refinanced under HARP previously, unless it is a Fannie Mae loan that was refinanced under HARP between March 2009 and May 2009.
The current loan-to-value ratio must be greater than 80%.
The borrower must be current on the mortgage at the time of the refinance, with no late payment in the past six months and no more than one late payment in the past 12 months.
Will Arizona State Credit Union be participating in the HARP Program?
Yes, Arizona State Credit Union will be refinancing loans that are currently owned by Fannie Mae (FNMA). They can be serviced by Arizona State Credit Union, as well as other financial institutions.
When will the program be available?
All lenders have been advised by FNMA that full program enhancements will be available in early March 2012. If your loan-to-value is at or below 125%, you may qualify for the program currently available. For information on the current HARP program, contact a mortgage loan officers at one of our 21 branches, or call 1-855-505-HOME.
How long will the HARP program be available to consumers?
The program has been extended until December 31, 2015.
Does the property have to be my primary residence to qualify?
HARP applies to primary residences with loan-to-values greater than 80%. You will be able to apply for similar refinancing options for second homes and investment occupancies with the recent changes made to this program.
Is it true that the value of my home does not matter when using this new program?
Loan-to-value requirements vary based on the terms of the new loan as listed below:
All loans under this program must have a loan-to-value greater than 80%.
No maximum loan-to-value for fixed-rate mortgages with terms up to 30 years.
Maximum loan-to-value of 105% for fixed-rate loans with terms greater than 30 but no higher than 40 years.
Maximum loan-to-value of 105% for ARMs with initial fixed periods greater than or equal to five years and terms up to 40 years.
For any additional questions, we encourage you to contact one of our mortgage loan officers at your nearby branch, or call 1-855-505-HOME.