HARP II Refinance Program

The Government has recently announced that HARP II will be launched by the end of 2011.  While more specific details on dates are coming “around November 15″, I wanted to highlight what we do know today.

History

HARP was launched in the spring of 2009 to assist homeowners with limited equity.  The three requirements were that 1) your mortgage was backed by Fannie Mae or Freddie Mac.  2.  Your mortgage needed to have been purchase by Fannie or Freddie prior to June 1, 2009 and 3.  Your Loan To Value must be 125% or less.  Mostly because of the LTV limit, HARP failed to deliver as promised.

Enter HARP II

On October 24, 2011, the government announced they were expanding the HARP program.  These are the key features:

• LTV Limits Removed – No matter how far you may be underwater, you can still use the HARP program.
• Limited Liability to the mortgage company who originates your loan – In the past, due to “reps and warrants” many lenders have been fearful of fulling participating in the HARP program.  This change allows more lenders to participate with lower risk to them should the loan default.

Stay tuned for further details on the HARP program coming on or around November 15, 2011.  To keep abreast of changes, simply subscribe to our blog.

The Ryan Mortgage Team is powered by Envoy Mortgage and we are an Atlanta, Georgia based mortgage lender.