Showing posts with label Obama Loan. Show all posts
Showing posts with label Obama Loan. Show all posts

Friday, February 17, 2012

HARP 2.0 - "Obama Loan" update

Good Morning,

     Back in December I wrote an e-mail post about current rates and “The Obama Loan”, more accurately Known as HARP 2.0.   HARP 2.0 has been back in the news a lot lately and I have received many inquiries regarding the program and how it works. 



     Back in November when the program was announced, the lending community did not know exactly how this program was going to unfold or what “overlays” to the guidelines they were going to place.   The one thing we did know is that whatever the guidelines on the new program were, they were not going to take effect until March 2012.  Fannie Mae published an update to its “Refi Plus” program which HARP 2.0 falls under, so I figured I would e-mail this information out because we are now getting very close to the launch of the HARP 2.0 program.



     Here is a link to the actual Fannie Mae announcement.  CLICK HERE  Then Click on the link for HARP 2.0 Guides in info,  or cut and paste this address to your browser.   http://americanmortgagenow.com/custompage-view.aspx?id=27

 

The Bullet Points – Here are the main points and things to know about this program to determine if you or someone you know may benefit from it. 

1st Your current loan must be a Fannie Mae or Freddie Mac Loan.   Here is a link to my website that has two Look up tools to determine if Fannie or Freddie owns your mortgage.  http://americanmortgagenow.com/resources.aspx

2nd You must be current on your Mortgage.  You cannot have had any late payments in the last 6 months and no more than 1 late in last 12 months. 

3rd  - Loan to Value.  At this time we are not 100% sure what the loan to value restrictions are going to be on this program.  As you can see from the guidelines put out by Fannie Mae, they are removing the LTV limits from the prior HARP 1.0 of 125% to unlimited LTV.  Unfortunately, I doubt any lenders will truly offer unlimited LTV, I do however expect the maximum LTV requirements to go up significantly.  (You may have already seen lenders advertising that they are now doing the HARP 2.0 loan.  They are not, all they have done is increase their Max LTV to 125% to match the already in existence HARP 1.0 loan.  Many lenders previously were only offering LTV’s up to 105%) 

4th Removal of Bankruptcy & Foreclosure policy.  HARP 2.0 removes the required waiting periods and reestablished credit requirements to qualify for this program.  The only time you would have to credit qualify is if your payment is increasing as a result of the refinance.  This would occur if someone was going from an ARM, Interest only, or Negative Amort loan, etc. 



     I hope you find this information useful.  As we get closer to launch date and we receive more updated information I will be sure to pass it alone.  Please call me directly if you have any questions or would like to see if you will qualify for this program.  Greg Novak  386-846-6686.



Additionally here is a direct link to the Home Affordable Refinance Program (HARP) official websitehttp://www.makinghomeaffordable.gov/programs/lower-rates/Pages/harp.aspx

 

It's a Good Life!!!

Greg Novak MBA

NMLS # 329079

Vice President / Partner

American Mortgage

Cell - 386-846-6686

Office - 386-756-8228

Fax - 386-756-8108

Website - www.AmericanMortgageNow.com

 

Oh, by the way,  If you know someone who is thinking about buying or refinancing a home, please give me a call with their name and number, I will be happy to follow up with them for you.

 

FLORIDA- American Mortgage Loan Services, Inc. - NMLS Company ID 330596

 

NOTE: THIS IS A CONFIDENTIAL COMMUNICATION. This transmission is intended only for the use of the individuals or entity to which it is addressed. If you are not the intended recipient, or the person responsible for delivering the message to the intended recipient, please return it immediately.  Although this email and any attachments are delivered to be free of any virus or other defect, it is the responsibility of the recipient to ensure that it is virus free and no responsibility is accepted by us for any loss or damage arising in any way from its unauthorized modification or use.



Monday, December 19, 2011

Rates & "The Obama Loan"

So the news Media has been Harping on two subjects lately regarding the mortgage industry, I figured i would really quickly touch on both of them.

First, Rates. Rates again are pushing all time lows in the 3's and APR's in the high 3's or low 4's. Now truly is a great time to buy or refinance.

I recently refinanced a client who had a 30 year fixed rate of 6.25%. We refinanced them to a 15 year loan and there payment only changed by $6 per month.

If you know anyone who is thinking about buying or refinancing, please have the give me a call. Greg Novak 386-846-6686



Second, "THE Obama Loan." I have received a number of calls from people seeking information on the new "Obama Loan". I figured a lot of people are probably curious about the loan and what the actual facts of what the program entail.

1st - Lets get my political opinion's out of the way. The Media hype and spin Washington has put on this loan is not a whole lot more than campaign efforts to help with their re-election. Once again, Washington has failed to come up with a program to help the people who need it the most.

2nd - Facts about this loan. It already Exists. The actual name of this loan is HARP 2.0. It's predecessor and current sister loan HARP 1.0 has been out and in the tool belt of the mortgage industry for over 2 years now.

3rd - Facts about the current program. The HARP loan was designed for people who currently are able to make their mortgage payments and have not had any late payments in the last 12 months. The applicant for HARP must be able to prove income, assets, and credit worthiness. Qualifying for a HARP loan is basically the same as qualifying for a standard fannie mae mortgage refinance, with one exception, the Loan to Value. HARP currently allows you to refinance your current 1st Mortgage as long as your total combined Loan to Values, including all subordinated loans does not exceed 125% of the appraised value. You can not combine first and second mortgages together. The second mortgage must be willing to re-subordinate and the total can not exceed the 125% loan to value.

4th - The Change. HARP 2.0, "The Obama Loan" only changes one thing, and that is the loan to value restriction. HARP 2.0 is supposed to remove restrictions on loan to value allowing home owners to refinance their home regardless of what they owe on it vs how much it is worth. You still can not combine firsts and second mortgages, and contrary to what seems to be a popular belief, the government is not going to reduce your loan balance down to what the appraised value is.

5th - The bad news. The bad news is that although this mortgage was supposed to take effect in the beginning of November, Fannie Mae has announced that they will not be adjusting their underwriting systems to the new program until at the earliest March 2012. Therefore, lenders will be unable to sell loans based on the new guidelines and will not be offering them until that time. Additionally, current speculation is that no lender is actually going to allow unlimited Loan to Value. It is expected that the current 125% max will increase, but lenders will impose their own overlay's based on their own desired risk tolerances for LTV.

6th - The Good News. The good news is that, as I stated before, this loan already exists. You can have all of the benefits of this new great super loan right now with one exception, and that is the max 125% loan to value. So if you think that you may benefit from this loan and you owe less that 125% of what your home is worth, give us a call. Greg Novak 386-846-6686

Here are a few links to some news articles regarding the Updated HARP 2.0.

HARP 2.0 – The New Mortgage Plan http://smartmortgageadvice.com/?p=942

Sizing Up HARP 2.0 http://www.smartmoney.com/spend/real-estate/sizing-up-harp-20-1322685479452/

HARP 2.0 rules, and who will benefit http://www.marketwatch.com/story/harp-20-rules-and-who-will-benefit-2011-11-18

The Official Website Home Affordable Refinance Program (HARP) http://www.makinghomeaffordable.gov/programs/lower-rates/Pages/harp.aspx

It's a Good Life!!!

Greg Novak MBA

NMLS # 329079

Vice President / Partner

American Mortgage

Cell - 386-846-6686

Office - 386-756-8228

Fax - 386-756-8108

Website - http://www.americanmortgagenow.com/

Oh, by the way, If you know someone who is thinking about buying or refinancing a home, please give me a call with their name and number, I will be happy to follow up with them for you.

FLORIDA- American Mortgage Loan Services, Inc. - NMLS Company ID 330596