HARP 2.0 TOOLKIT. A reboot to Mortgage Refinance. A lifesaver for mortgages that are underwater

Transcription

1 A rebt t Mrtgage Refinance A lifesaver fr mrtgages that are nderwater

2 table f cntents Eligibilty Checklist...p 3 FAQ...p 4-6 Vital Dcments Checklist...p 7

3 eligibilty checklist HARP 2.0 TOOLKIT On Octber 25, 2011, President Obama annnced changes t the Hme Affrdable Refinance Prgram (HARP) that may help mre hmewners refinance their crrent mrtgages even if the vale f their hme has declined. There are new gidelines fr hmewners with lans wned by Fannie Mae and Freddie Mac that can help y start a dialge with yr servicer (the cmpany wh hlds yr lan and t whm y write yr payment checks) r a lcal lender participating in HARP 2.0 t see if y qalify fr a HARP 2.0 refinance lan. Y mst have riginated yr lan befre May 31, 2009 Y mst be crrent n yr mrtgage payments, and have nt made a payment mre than 30 days late dring the past year Y mst demnstrate the ability t cntine making payments n the lan (demnstrate that y have a jb r ther cnsistent srce f incme) Yr lan mst be wned r garanteed by Fannie Mae r Freddie Mac Y dn t have t we mre than yr hme is wrth t qalify. Hmewners with 80% r mre LTV may be eligible fr HARP 2.0 (see LTV definitin t the right) A refinance mst help the affrdabilty r stability f the lan (this means the refinance mst make the lan either mre affrdable, r make the payments mre cnsistent ver time) What is LTV? Hmewners wh are nderwater means their LTV (Lan t Vale) is mre than 100%. The amnt f the crrent mrtgage is MORE than the vale f the hme. Example: Y we $ 130,000 n yr mrtgage (this is yr lan amnt) yet the vale f yr hme is $ 100,000 (this is the crrent vale f yr hme). Yr LTV is 130% (y we $ 30,000 mre than yr hme is crrently wrth). NOTE: 100% LTV is nt reqired t qalify. Hmewners whse LTV is 80% r higher may be eligible fr HARP 2.0. *Eligibilty sbject t credit and incme verificatin. 3

4 FAQ S Q: What is HARP? A: HARP stands fr the Hme Affrdable Refinance Prgram. HARP was rlled t in 2009 t help brrwers wh were crrent n their mrtgage payments, had lans backed by Freddie Mac and Fannie Mae, and wanted t refinance bt didn t have engh eqity in their hmes t d s becase the vale f the hme had declined. The HARP prgram is designed t help qalifying hmewners refinance int a new mrtgage at crrent (lwer) interest rates. A HARP lan is a new lan, nt a mdificatin f yr crrent lan. Q: What is HARP 2.0? A: Several changes have been made t the prgram t help mre hmewners qalify fr the refinance pprtnity and help lenders manage the refinance prcess mre efficiently. The prgram is designed fr hmewners wh are nderwater -meaning their LTV (Lan-T-Vale) is mre than 100%. That means the amnt f yr crrent mrtgage is MORE than the vale f yr hme, and y may be eligible t explre refinancing yr hme nder HARP 2.0. Example: Y we $130,000 n yr mrtgage (this is yr lan amnt), yet the vale f yr hme is $100,000 (this is the crrent vale f yr hme). Yr LTV is 130% (y we $30,000 mre than yr hme is crrently wrth). IMPORTANT NOTE: Y are nt reqired t be nderwater with an LTV f 100% t qalify. Hmewners with an LTV f 80% r higher may be eligible fr the HARP 2.0 prgram. 4

5 Q: Hw d I knw if my lan qalifies fr the HARP 2.0 prgram? A: There are sme basic gidelines y shld check befre cntacting yr servicer r lender t see if y qalify fr HARP 2.0: Y mst have riginated yr lan befre May 31, 2009 Yr lan mst be wned r garanteed by Fannie Mae r Freddie Mac Y mst be crrent n yr mrtgage payments, and have nt made a payment mre than 30 days late dring the past year Y mst demnstrate the ability t cntine making payments n the lan (demnstrate that y have a jb r ther cnsistent srce f incme) Yr Lan-T-Vale (LTV) mst be 80% r higher t qalify fr HARP 2.0. (see LTV definitin n page 3) A refinance mst help the affrdability r stability f the lan (this means the refinance mst make the lan either mre affrdable, r make the payments mre cnsistent ver time) Q: If I have already refinanced nder HARP 2.0, can I refinance nder the prgram again t take advantage f even lwer interest rates? A: Unfrtnately, n. Once y have refinanced yr hme nder HARP 2.0, y will nt have anther chance t refinance nder the prgram. Q: Hw mch will it cst t refinance nder HARP 2.0? A: While the csts t refinance have changed nder the new HARP 2.0 gidelines, each brrwer is different and y will need t wrk with yr lender t get specific infrmatin abt yr sitatin. Q: What kind f lan can I refinance int? A: Y may refinance int a 30-year, 20-year r 15-year fixed rate lan. A large nmber f peple have redced their term t a 20-year fixed rate lan with n payment increase. 5

6 Q: When can I apply fr refinancing nder the HARP 2.0 prgram? A: The deadline t apply fr HARP 2.0 is December 31 st, Q: Are secnd hmes eligible fr HARP 2.0? A: Yes. The HARP 2.0 prgram is available fr primary residences, secnd hmes and investment prperties. Q: What if I have a secnd mrtgage n my hme? A: Brrwers with a secnd mrtgage (example: A hme eqity lan r a balance n their hme eqity line f credit) may be able t participate in HARP 2.0. Yr servicer r lender will be able t help y determine if yr secnd mrtgage wner will agree t re-sbrdinate that lan befre y can refinance the first mrtgage. Q: Hw d I knw if Fannie Mae r Freddie Mac wn r garantee my lan? A: Y can se the links belw t help determine if Freddie r Fannie wn r garantee yr lan. Q: Wh can help me with a HARP 2.0 Lan? A: Shamrck Financial ffers the HARP 2.0 prgram as well as a variety f ther mrtgage prdcts. Fr mre infrmatin, visit 6

7 vital dcments checklist THINGS YOU MAY BE ASKED TO SHARE In additin t the applicatin itself, these are the basics y need t have ready. Start gathering these nw: 2 recent paystbs frm all jbs* 2 mnths bank statements fr all primary asset accnts* 2 years persnal Federal tax retrns (cpy f extensin, if applicable) 2 years crprate tax retrns (if applicable) 2 years f W-2s Mst recent mrtgage statement(s) frm all prperties wned Cpy f mrtgage nte and settlement statement Hman Resrces Department Cntact Infrmatin fr all places f emplyment (last 24 mnths) Cntact infrmatin fr yr Hmewner s Insrance agent Cpy f driver s license fr all brrwers * TIP Keep all sbseqent bank statements and paycheck stbs as y get them. Files sally need t be pdated jst befre the clsing. 7

8 . R E T A W E V O B A K C A GET B at. The view p here is gre r HARP F fy li a Q Y If t O Find an Officers tday L r f e n h it w k Spea P 2.0 prgram. R A H e th r f y lif a q t see if y al.cm/harp anci Visit: Shamrck Financial Crpratin Crprate Headqarters 75 Newman Avene, Rmfrd, RI shamrckfinancial.cm (800) NMLS ID #2227 Rhde Island Licensed Brker and Lender: # LB, # LL; Flrida Mrtgage Lender: #CL ; Maine Spervised Lender: #SLM8104; Massachsetts Mrtgage Brker and Mrtgage Lender: #MC2227; Licensed by the New Hampshire Banking Department: #7688MB; Licensed Mrtgage Banker New Yrk State Department f Financial Services: LMBC NO ; Licensed by the Virginia State Crpratin Cmmissin: #MC-3964; Cnnectict Crrespndent Mrtgage Lender # Shamrck Financial Crp.