HARP 2.0 for Underwater Mortgages
Help for Homeowners
Homeowners will hopefully receive some much needed assistance from the new HARP 2.0 program set to roll out in March 2012. Some lenders are getting a jump start and accepting applications early to underwrite with conditional approval until the program becomes official. The Home Affordable Refinance Progam initially rolled out with a maximum 125% cap meaning that if you owed more than 125% of your value you were not eligible to participate. The new program states more flexibility with underwriting guidelines and the main benefit, no cap on the loan-to-value ratio. With everything the program states it can do, it should help the nearly 9 million homeowners that have not been able to refinance based on an appraised value less than their mortgage loan(s).
Some benefits of the new HARP 2.0 program include:
- No maximum loan-to-value ratio-no cap
- Owner-occupied, investment and 2nd homes
- Historically low interest rates
- Conversion from an ARM to a Fixed rate loan
- No minimum credit score required
