Govt. Removes 125% LTV Cap from HARP 2.0 Qualification Criteria

June 19, 2012 - PRLog -- For homeowners who are underwater on their mortgage payments, Govt. has announced a new loan program called Home Affordable Refinance Program or HARP 2.0. This program helps eligible homeowners to refinance their mortgage payments. The Government has removed the previous 125% LTV (loan-to-value) cap that means now homeowners that have more than 125% LTV can also apply for this program. Note that HARP is not aimed at saving a home from foreclosure but its major goal is to make underwater homeowners get eligible to refinance their home without paying PMI (private mortgage insurance).

The changes are said to be positive for the underwater homeowners and are supposed to play their role in increasing the number of eligible HARP 2.0 candidates. “We are anticipating that one out of every five new borrowers will be a homeowner seeking a HARP 2.0 refinance loan this year,” said Karen Mayfield, Bank of the West’s National Sales Manager for the Mortgage Banking Division. “This program is providing real relief for homeowners who are current on their mortgage but have been unable to refinance due to a decline in the value of their home.”

To know whether you’re eligible for this updated version of HARP 2.0, you must fulfill the eligibility criteria. Here is how Bank of the West defined HARP 2.0 criteria:

1.   Your mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac.

2.   Your mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.

3.   Your home’s Loan-to-Value (LTV) must be greater than 80%.

4.   You must be current with your mortgage payments now and have had no 60-day mortgage late payments in the past 12 months.

 To check your loan is owned by Fannie or Freddie, visit their websites:

FannieMae.com/loanlookup

FreddieMac.com/mymortgage

Despite all the positive changes in HARP 2.0, borrowers still find it confusing to apply for it. This is because spammers are also trying to make money out of this program. Try first to do the HARP 2.0 through the lienholder who has our mortgage now. If your lender is not participating in the HARP 2.0, then use a reliable lender. To find a reliable lender that is experienced in HARP 2.0 for hassle-free loan, contact  Kecia & Co Realtors or  visit their website: http://ida-homes.com.  



About Kecia & Co

Kecia & Co is an Idaho based real estate consulting firm that provides complete guidance on residential and investment facilities. The company also deals with online clients through its websites like http://ida-homes.com and provides hassle-free real estate services. Kecia &Co can be contacted through Mobile @ 208-615-5020 or via Email: kecia@homesID.com