Refinancing Guidelines With HARP With Second Mortgage

This BLOG On Refinancing Requirements With HARP With Second Mortgage Was UPDATED On July 9, 2017

Can Homeowners Refinance HARP With Second Mortgage?

Many homeowners still have mortgage loans that are higher than the value of their homes.

  • Often known as underwater mortgages, these homeowners did not turn in their keys and walk. 
  • Most definitely, they would be stuck in their homes until their home value surpasses their mortgage loan. 
  • The only way they can sell their house is to pay down their mortgage since their home value is below their mortgage loan balance.
  • Other homeowners have second mortgages on their homes with upside down values.
  • One of the most common questions I get asked by homeowners is if they can refinance with HARP
  • With Second Mortgage even if their home is worth much less than the mortgage amount.
  • The answer to refinancing with HARP With Second Mortgage is yes.
  • Most second mortgage lenders will subordinate their second mortgages after the refinance of the HARP loan.

Underwater Mortgages: HARP 2.0

The Home Affordable Refinance Program, also known as HARP 2.0, is a federally initiated refinance program that was created to reward homeowners who have their mortgage loan balances higher than the value of their homes.

  • As long as current mortgage lender has sold mortgage loan to Fannie Mae or Freddie Mac prior to June 2009, homeowners can qualify for the Home Affordable Refinance Program.

Qualification Requirements for HARP 2.0

  • One of the contingent factors with HARP, Home Affordable Refinance Program, is that the homeowner needs to be current on their mortgage loan with no late payment history in the past twelve months. 
  • There is no appraisal needed with the Home Affordable Refinance Program.

HARP With Second Mortgage: Can I Qualify?

Many homeowners have second mortgages on their homes and believe due to their second mortgages that they do not qualify for the HARP mortgage loan.

  • This is not the case. 
  • A homeowner can still qualify for a HARP mortgage loan even if they have a second mortgage. 
  • What the mortgage lender does is subordinate the second mortgage and refinances the first under the Home Affordable Refinance Program.

First And Second Mortgages Cannot Be Consolidated with HARP 2.0

First and second mortgages cannot be combined under the HARP 2.0 mortgage loan program.

  • For those who have mortgage loans that are not owned by Fannie Mae or Freddie Mac do not qualify for the HARP 2.0 mortgage loan program. 
  • However, the Home Affordable Refinance Program 3.0, also known as HARP 3.0, is right around the corner. 
  • HARP 3.0 is being created to rescue homeowners whose mortgage loans are not owned by Fannie Mae or Freddie Mac and are underwater ( mortgage loan is higher than the value of the home).

2017 Update On HARP 2.0

The CFPB has announced that they will be extending the HARP 2.0 until the end of 2016.  The HARP 2.0 will be Extended through September 30, 2017 .

Gustan Cho, NMLS ID 873293

Related> HARP Mortgage Loans

Related> HARP: Home Affordable Refinance Program

Related> HARP 2.0 Extended Until December 2016

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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