Home Affordable Refinance Program (HARP)

Freddie Mac and Fannie Mae have adopted changes to the Home Affordable Refinance Program and you may be eligible to take advantage of these changes. You can determine whether or not your mortgage is owned by Freddie Mac or Fannie Mae by checking the following web sites Freddie Mac or Fannie Mae.

There are many new features and requirements for HARP 2.0, but the biggies are:

• There is no maximum LTV for the new HARP. Previously the maximum you could owe on your home was 125% of the value.
• Increased number of appraisal waivers. Depending on the characteristics of the loan an appraisal may not be required.
• Loan level pricing adjustments or “pricing hits” for lower FICO scores, type of property, 2nd liens, etc. have been eliminated in some cases and capped at maximums lower than the original HARP.
  

HARP Eligibility*
You may be eligible to apply for a HARP Mortgage if you meet all of the following:

• Your mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae. (See the loan lookup tool or contact us)
• The mortgage must have been sold to Freddie Mac or Fannie Mae on or before May 31, 2009.
• The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May 2009
• You must be current on your mortgage at the time of the refinance with a good payment history over the last twelve months. (no lates in last 6-months and no more than one 30-day late in months 7-12)
• The current loan-to-value (LTV) ratio must be greater than 80%. If you have equity in your property a traditional refinance will likely be available to you.
  
  *Eligibility criteria are for guidance only. Contact us to see if you qualify for HARP.
  

Timing
The roll out for this program will be over the next several months. For loans with Loan-To-Value (LTV) ratios over 125%, the updates to Freddie and Fannie automated underwriting systems will begin in February and are due to be completed in March. For those with LTV’s at or below 125%, applications can be taken starting December 1 with closing available January 3 and after. Contact us to discuss your unique situation and we can let you know the availability and time line for your particular loan.

Steps to HARP Refinance

• Determine whether your mortgage is owned or guaranteed by Fannie Mae or Freddie Mac by visiting their respective Loan Lookup tools
• Contact us to inquire about HARP.
• You do not have to use your current servicer for a refinance. Other lenders are offering HARP.

For More Information

• Contact Gilpin at 302-656-5400 or 800-343-8323
• Visit FannieMae.com or call (800)7Fannie
• Visit FreddieMac.com, call (800)Freddie, Option 2
• If you need mortgage help, contact a housing advisor at (888) 995-HOPE (4673). These HUD-approved housing counselors will help you understand your options, design a plan to suit your individual situation, and prepare your application. Research shows that homeowners who work with housing counselors like these are more successful and have better long-term outcomes. There is no cost to you for this valuable, around-the-clock service. Help is available in more than 160 languages
• If you are behind on your mortgage, contact your current mortgage servicer. You may be eligible for the HAMP (Home Affordable Modification Program) or another modification plan.
  

Call Gilpin Mortgage for more info. We can help.
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302-656-5400 or 800-343-8323
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Licensing and Disclaimer: Gilpin Financial Services, Inc. doing business as Gilpin Mortgage is licensed to provide mortgage financing in Delaware, Pennsylvania and Maryland. Rates and programs are subject to change without prior notice. Mortgage approval is subject to satisfactory appraisal, survey, title, verifications of all information you have provided and compliance with Gilpin's underwriting guidelines.

 

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