Home Affordable Refinance Program (HARP)

Q. What is the Home Affordable Refinance Program?

A. The Home Affordable Refinance Program is a new refinance program for homeowners with little or even some negative equity in their homes.

Q. Who is eligible?

A. Any loan owned or backed by Fannie Mae, and in some cases Freddie Mac. You need not deal with your servicer. Any lender or broker may arrange this financing for you.

Q. How do I qualify?

A. Qualification is done through the DU automated underwriting system (AUS). The AUS is instant, meaning you will know quickly if you are accepted, without having to wait weeks in underwriting.

Q. What are the loan-to-value limits of this program?

A. Your new first mortgage may not exceed 125% of the current appraised value of your home. This % is called loan-to-value, or LTV. In some cases, DU Refi Plus will waive the appraisal requirement.

Q. This is an investment or second home for me...can I still get help?

A. Yes! DU Refi Plus applies to primary, secondary and investment residential property. Primary & Investment residences are allowed up to 4 units. (Please note property with more than 1 unit may be subject to additional restrictions.

Q. What about closing costs?

A. All closing costs may be financed or "wrapped" into the new DU Plus loan.

Q. Does the new loan have Mortgage Insurance?

A. Only if your original loan had Mortgage Insurance. Loans that were originally taken out with Lender-paid MI are not eligible for DU Refi Plus.

Q. What about credit scores?

A. DU Refi Plus does not have a minimum score requirement. However, investors offering the program may maintain a minimum requirement. Mortgage delinquency, bankruptcy, and foreclosure are standard Fannie Mae guidelines.

Q. What about income?

A. Debt-to-income ratios are determined by the AUS. However, the guideline has been expanded to allow help to more consumers. You can also add a cosigner to help your income situation.

Q. I have a high-balance (over $417,000 loan), can I get help?

A. In a word, yes- depending upon your high-cost county limit under the American Recovery and Reinvestment Act of 2009.

Q. What loans are ineligible?

• Mortgage loans that are subject to any credit enhancement (e.g., full or partial recourse) other than borrower-paid mortgage insurance.
• Mortgage loans that are currently subject to any outstanding repurchase request from Fannie Mae.
• Reverse mortgage loans.
• Government mortgage loans. (Get a FHA Rate Reduction Streamline or VA IRRL loan instead: no appraisal, credit, asset or income qualifying required.)

Q. Why would I do this?

A. Reduction in monthly payment; and/or.. Moving into a more stable loan product (ARM to FRM)

Q. Is this a permanent program? Where did it come from?

A. This program is from the new Bailout efforts by the Obama administration. As with any of the government programs (cash for clunkers for example) they can be pulled on short notice.

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