Many people have been asking me why their lenders wont process their application for HARP 2, and also wondering why I can and they can't.
Here's a few reasons:
1. DU will be updated during the weekend of March 17, 2012 to recognize LTV ratios greater than 125%. This means for the system to be reflecting the changes with the appraisal waivers will not take effect until March 17th. One reason not to wait until March 17th? You will already have your new mortgage and if there's an appraisal required most likely you will have saved that in one or two months of your new mortgage payment. Another reason - You might just get an appraisal waiver! And yet a final reason we can always get the appraisal credited back onto your loan at closing.
2. Unlimited LTV's are allowed effective with loan applications taken on or after January 1st, 2012 (with WJ Bradley).
3. 10 and 15 year terms will be allowed with closings May 25th, 2012 and loan deliveries to FNMA on June 1, 2012.
4. Loans cannot close until the transaction has a completely NEW DU run after March 17th, 2012 and receives a feedback of Approve/Eligible.
5. SOME loans may still be eligible for a Property Inspection Waiver - this waiver comes with a $75.00 delivery fee that will NOT be passed on to the borrower.
6. Minimum FICO for all borrowers of 620 is required.
7. Desktop Underwriting will dictate the maximum DTI allowed.
8. Transactions for 2nd homes or investment properties in which borrowers have greater than 4 financed properties are automatically allowed without an exception required from Secondary for FIXED rate loans. ARMS no longer allow this exception.
****Freddie Mac's guidelines are similar, if you would like details on that please e-mail me.*****
Here's the main things to look for regarding HARP loans (which many of you know)
1. Loan MUST be originated before May 31st, 2009
2. Fannie Mae or Freddie Mac MUST be the investor of the loans (until further notice)
3. Credit must be 620+
4. No Mortgage Delinquencies in the past 12 months
5. If the loan you're looking to refinance has been modified or a 2nd mortgage settled - you are NOT eligible to refinance.
6. NO Foreclosure in the past 7 years
7. Seasoning for Short Sales must be 4 years
Those are the main requirements, feel free to contact me with other questions