HARP 2.0 is a program that allows homeowners who are “underwater” on their mortgages to refinance. In particular, HARP helps people who don’t qualify for a traditional refinance because their homes are underwater or they don’t have at least 20% equity in their homes.
Are you eligible for a Harp 2.0 Loan?
In order to be eligible for the Harp program, loans must have been purchased by Fannie Mae or Freddie Mac by May 31, 2009. (Meaning if you acquired your home after 5/31/09, you are not eligible)
HARP 2.0 now allows you to have Unlimited Loan-to-Value ratios (with the first version of the Home Affordable Refinance Program, there was a ceiling of 125% Loan-to-Value)
To qualify, borrowers must be current on their mortgage for the last 6 months, and have no more than one late payment over the past year. If you have more than one late payment, you may need to wait and catch up until you meet the HARP requirements.
New appraisals may not be needed to qualify – save up to $400 in most cases on an appraisal!
Even if you had a loan modification, you may still qualify for HARP.