The Federal Housing Finance Agency announced that the Making Home Affordable Refinance Program has been extended until June 30th, 2012. This is great news for homeowners and the housing market.
Lender guidelines and participation have steadily grown since HARP’s inception. Many homeowners don’t know of the program and need this extra time to refinance their home. I believe this is an excellent decision and should have a positive impact to our housing market.
According to an article from BusinessInsider.com, only 220,000 homeowners have refinanced under HARP where an expected 4-5 million were projected at the program’s inception.
UPDATE 3/14/2011
The 220,000 closed HARP loans mentioned in the BusinessInsider.com article is inaccurate. This figure was published by Alan Zibel on March 5th, 2010, over 1 year ago. An article from MortgageNewsDaily.com has indicated that 621,083 HARP refinances were closed in 2010 alone. It’s not the 4-5 million they hoped for but there’s no question that lender participation and consumer awareness have grown.
Here’s a copy of the announcement:
FHFA Extends Refinance Program By One Year
Washington, DC– Federal Housing Finance Agency Acting Director Edward J. DeMarco has announced an extension of the Home Affordable Refinance Program (HARP), a refinancing program administered by Fannie Mae and Freddie Mac, to June 30, 2012. The program was set to expire on June 30 of this year. In addition, Fannie Mae and Freddie Mac will make the following adjustments to their programs: Freddie Mac will exempt HARP loans from their recently announced price adjustments and Fannie Mae will conform their eligibility date to May 2009. The program expands access to refinancing for qualified individuals and families whose homes have lost value. HARP has grown over the past year. In 2010, Fannie Mae and Freddie Mac purchased or guaranteed more than 6.8 million refinanced mortgages. Of this total, 621,803 were HARP refinances with LTVs between 80 percent and 125 percent. This is up from 190,180 in 2009, when HARP began.
Here’s a link to the announcement:
http://www.fhfa.gov/webfiles/20399/HarpExtended0311.pdf
I have two suggestions related to this topic for homeowners:
- One, if I had an investment property, I would try to refinance it as soon as possible. Certain pricing guidelines that benefit investment properties appear to be a “loophole” in the guidelines. This helps investment properties price very well but appear to be designed for homeowners, not landlords. If the FHFA had let those guidelines slide since HARP was expiring soon, they may very well change them now that the deadline has been extended.
- Two, if you have a loan with PMI, this is the chance to let your voice be heard and let the government know that they should loosen guidelines to allow PMI backed loans to be done by outside lenders. Too many people have their loans serviced by lenders who will not do PMI HARP loans or have their loan serviced by a company who does not originate loans at all. These homeowners are well qualified and deserve to have their mortgage refinanced. Being left behind due to an unlucky transfer of servicing to a mortgage company who does not originate new loans is not an acceptable reason for why these people cannot refinance their loan.
Hello Keane,
I read about the HARP extension until 2012 will include all loans purchased by Fannie-Mae prior to June 1, 2009. Is this true ? Please see below snippet that I found on MedfordHouse blog.
Currently, to be eligible for Refi Plus or DU Refi Plus the existing mortgage loan being
refinanced had to be purchased by Fannie Mae prior to March 1, 2009 or in an MBS pool
with an issue date prior to March 1, 2009. With these program changes, mortgage loans are
now eligible if they were purchased by Fannie Mae prior to June 1, 2009 or in an MBS pool
with an issue date prior to June 1, 2009.
Donna,
FHA loans are not eligible for HARP but FHA has their own refinance program which is likely what you were offered.
FHA has a product called a “Streamline Refinance” which does not require an appraisal. It is possible that rates are low enough that it is worth revisiting a FHA streamline refinance.
Donna,
I won’t go into all the details, but it’s best to close on a FHA streamline at the end of a calendar month to avoid paying extra interest.
I’ll find a lender for you.,
I bought my house in october 2008, I Recently try to apply my loan was originally of 242000 ….the purchase price was 269000……and i owe 235000 on the loan ….my house is valued at 219000 aprox. it is funded by fanny mae……but they told me im not elegible because i am paying pmi…..what can i do….never being late and creditscore in the 700
Rafael,
Depending on what type of PMI you have, you may be able to do this refinance. I’ll email you a rerral.
I was a first time homebuyer when I purchased my current home. It is a conventional loan with PMI through GMIC. Seterus is the current mortgage servicer and that is all they are. They don’t do loans. I am currently at 6.5% and would really like to refi. I am so stressed and put down about the whole thing as I have been trying SO HARD to find a way to get my home refinanced. My wife and I have excellent credit and haven’t been a day late or missed a payment in the 5 years I have lived here. I believe I am within 125% but everytime I try something I get shot down for the PMI. Is there anything I can do? Thank you so much for your help! It is much appreciated.
814 credit score ownered 3 houses , NEVER MISSED A MORTGAGE PAYMENT..HAVE GUARANTEED INCOME UNTIL DEATH, VERY LITTLE DEBT….BUT HAD PMI ON LAST LOAN……..COMPANY WILL NOT REFINACE AND FINDING VERY FEW THAT WILL.. .SO MUCH FOR HELPING THE TAXPAYER.
Dan,
There are more lenders that will help these days. I can help you find someone if you email me the state you’re in.
can you let me know who would Refinance a house in Indiana under a HARP loan that has PMI. My company flat turned me down and we have excellent credit.
Jeff,
No, PMI is not a sole reason for turning you down. If you like, please share more specifics and I can help direct you. Loan balance, Fannie/Freddie, who your lender is, estimated value, etc.
I want to refi my investment property. Condo. Excellent tenant history. We have excellent credit/reserves. Current 1st/2nd combined exceed 90% of condo value. Am I a HARP candidate? (No pmi – mortgage was 80% when purchased) Current rate is 6.75 on 1st mortgage, interest only. Many thanks – Lisa
Lisa,
If your loan is backed by Fannie Mae or Freddie Mac and was acquired by one of the two agencies before May 2009, then you likely are eligible. Based on your current rate and when rates were at 6.75%, my guess is your loan is older than May 2009.
If you need a referral, let me know what state you’re in and I’ll pass along a name.
hello, please help. mortgage isn’t a fannie mae or freddi mac. I owe 216k house is worth 190k, currently not paying PMI and my rate is 6.45%. I’d like to just REFI into a new 20 or 30 yr with todays lower rates. Any suggestions?
need to refi an investor property. Mortgage not fannie mae or freddie mac. no pmi
ltv 90%. suggestions? excellent credit and rental history. condo.
Lisa,
That loan-to-value is tough to work with on a rental that’s not HARP eligible. However, the online search engine for Fannie/Freddie fail quite often on condos. Did you try calling your servicer and Fannie/Freddie to double check?
David,
You may want to do more investigating to make sure your loan isn’t backed by one of the two agencies. Their search engines fail sometimes, so it’s worth looking into this further. If not, you may want to get a separate loan to pay down your balance, such as a 401k loan.
Hi, I purchased my co op apartment in 2008 for 336,000 and it is now valued at about 300,000. I have a 6.5 ARM mortgage which I am absolutely dying to refinance. I have contacted lenders in order to refinance the traditional way, but they will only refinance 80% of the value of my property. I looked into a HARP refinance but my loan isn’t a freddie mac or fannie may. However, my co op complex does have a fannie may loan. Is there a loophole that exists somewhere that could help me qualify for a HARP refinance?
Eva,
Unfortunately, HARP is only for Fannie Mae and Freddie Mac backed conventional loans.
If the property meets FHA requirements, FHA will finance up to 97.75% of the appraised value. You’ll have to add mortgage insurance but FHA rates are approximately 3% lower than your current rate for a fixed, so the mortgage insurance would likely be worth it. Do you know if the property is FHA eligible? If so, I would seek a FHA lender and refinance.