Landlords who are underwater on their 1 to 4 family rental properties are getting lower payments under the Revised Home Affordable Refinance Program (HARP 2.0). Lenders are refinancing investment properties under this program provided the property has a loan that is owned by either FNMA or Freddie Mac prior to June 1st 2009. President Obama announced the removal of the loan to value cap of 125% on October 24th 2011 however most of the mortgage industry waited for FNMA and Freddie Mac to update underwriting software on March 17th 2012. The revised guidelines allow for primary homes, secondary homes and rental properties whose owners have kept their payments current to refinance regardless of current loan to value. As long as the property owner owes more than 80% then they are eligible under the revised guidelines.
Property owners can check here http://www.newhomeaffordablerefinanceprogram.com/
“Investment property owners cannot walk away from properties without recourse like a primary homeowner can so allowing them to refinance for lower payments has even greater financial significance than for a homeowner” Says Bryant Keefe Branch manager of Geneva Financial LLC “If you lose a rental property to foreclosure the bank can pursue you for their losses” says Keefe “And with rental rates rising these lower payments can benefit the tenants also as the lower payments fee up cash flow for repairs and maintenance”
The revised HARP program is available through the end of 2013 so property owners have time to get these lower payments. The program will refinance any loan owned by FNMA or Freddie Mac that was owned by them prior to June 1st 2009 assuming the borrower meets other minimal qualifying criteria. Appraisals are required for Non-Owner Occupied transactions where as on a primary home the appraisals are being waived.
“I believe more people can get these loans but there has been a lot of confusion” says Keefe “If you own a rental property and you are upside down then you really need to see if you can get these lower payments” Keefe adds “Don’t let a “No” stop you. Get a second opinion. Every bank has their own interpretation of the guidelines so seeking a loan from several places is a smart business decision.”
ABOUT Geneva Financial LLC
Geneva Financial LLC is an independent mortgage broker that offers the lending programs for more than 60 local, regional and national banks. Geneva Financial is based in Tempe Arizona and has offices in several western states. Bryant Keefe is the Branch Manger of their Tucson officer. Bryant Keefe has been an active member of the Tucson mortgage and real estate community since 1992 and specializes in Investment Property Loans. He can be reached at 520-790-5000 or Bryant@genevafi.com and online at www.tucsonharploans.com