HARP - this is the conventional loan program where you can potentially refinance your home even IF you are over 80% of the value owed (an even be underwater), and IF it is backed by Fannie Mae or Freddie Mac currently. For some time we have been tolf that the "HARP 2.0" guidelines would be released AND accepted by lenders. We were told Jan 1, then March 1, and now we are being told April 23rd this month we should be a go.
To clarify, the guidelines are out there, but these programs are voluntary so each lender can adjust what they will/will not accept within the program. Typically one BIG lender will step up and start it rolling, then the rest of lenders jump in the pool as well. We are now hoping to release this program by 4/23/12!! If this finally goes thru, this will spark (in my opinion) an enormous refinance opportunity for those currently under water with Fannie/Freddie backed loans. You of course will have to apply and qualify for any/all loan programs.
I know many of you have spoke to me about this very program, so please stay tuned and I will update as best I can as news arises. Rest assurred, this will be good for many people regardless if you use me or look elsewhere for your loan.
FHA - they have announced as of early June, they will FINALLY roll out the new streamline refinance guidelines for current FHA backed loans. This will allow lenders to avoid tacking on the higher monthly and upfront mortgage insurance premiums to those with older FHA loans. This doesn't sound like much, but if you have had a FHA loan for a couple few years and looked into refinancing lately you will know the mortgage insurance premiums have been hiked by FHA twice now, and this has basically stalled the FHA streamline market all together. The reason - lowering your rate a full point or more is typically a no-brainer, but when the new insurance premiums were tacked on it basically eliminated the monthly savings (loan benefit) of refinancing all together. This is a generalization, but you get the point.
This will help FHA customers to take advantage of the lower rates and actually REALIZE monthly savings. All of this is if you qualify of course in all scenarios, but typically FHA streamlines require reduced documentation, and often times no appraisal is required.
Sorry this is so long, but there are a lot of good things coming down the road and I wanted to lay it out as best I could. I have worked with many MJC members over the years, and I just wanted to get the general info out there for all to see. I don't care (honestly) if you use me or not, but for those of you in a bind this info is good to have in general.
Have a good day all
