Fannie 580 minimum FICO score required.
Freddie 620 minimum FICO score required.
No more than one missed payment.
Unlimited LTVs (Loan To Value) available.
Fannie EA I, II, III results must be approved by Desktop Underwriting (i.e. borrowers with low credit scores, high debt, high LTV, etc.) These loans are considered higher risk loans from Fannie Mae.
2nd homes, investment properties, condos, loans over $417,000 allowed. No investment for Freddie
If you have a 2nd mortgage (i.e. HELOC). It must be subordinated; meaning your 2nd mortgage company must approve the HARP refinance. They typically charge $250.00 for this approval.
In most cases your will have an escrow account (i.e. taxes and insurance will be included in your monthly payment) unless the lender approves the waiver.
Fannie appraisal waivers will have a fee of $75. Some HARP loans will require appraisals.
Loan must be sold to Fannie Mae or Freddie Mac before June 1st, 2009. No exceptions
Interest rate should be over 5% or an ARM to maximize savings.
DTI (Debt To Income) ratio should be under 50%. Add all your credit card minimum payments, mortgage payment with taxes and insurance, any student loan payments, any car loan payments and divide by monthly gross income.
PMI borrowers are eligible for HARP; however it will be at the lender’s discretion to accept PMI borrowers since there is Lender Paid PMI and Borrower Paid PMI. Only Fannie PMI accepted at this time.
HARP rates are generally higher than traditional refinance rates; however the homeowner should still benefit under the new refinance program.
If you are eligible, apply today at our HARP page by Clicking Here