Fannie and Freddie Release Updated Guidelines For HARP

Filed in HARP Program Updates by on February 29, 2012 1 Comment

On November 15, 2011, Fannie Mae and Freddie Mac released updated guidelines for the newest version of the Home Affordable Refinance Program. The updates are designed to help as many as one million homeowners refinance at today’s low mortgage rates.

It appears that many lenders are going to participate in the program, although we won’t know for sure until individual investors release their own overlays for this program.

Some of the key features of the program include:

  • HARP is now extended through the end of 2013.
  • In order to be eligible, loans must have been purchased by Fannie Mae or Freddie Mac before May 31, 2009 and have loan-to-value ratios of at least 80%.
  • The 125% LTV cap on fixed rate mortgages has been eliminated (there is still an LTV cap of 105% on adjustable rate mortgages).
  • To qualify, borrowers must be current on their mortgage for the last six months, and have no more than one late payment over the past year.
  • New appraisals may not be needed to qualify.

As more details of the updated HARP loan program emerge, we will update this space.

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  1. BC says:

    Fannie Mae or Freddie Mac before May 31, 2009. My loan is sold to Fannie Mae by Bank of America after this date on 1st June 2009. So I am not elligible- though I qualify for everything else.I think many homeowners like myself are not elligible for this criteria though they are also underwater and struggling.

    Please tell me if by any chance this criteria will be taken out in future. Thank you.

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