HARP Arizona loans - also referred to as HARP 2 refinance loans - are still benefiting Arizona borrowers. We are still doing HARP Arizona refinances with unlimited LTV (loan to values) for Fannie Mae and Freddie Mac HARP Arizona loans.
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HARP Arizona Benefits
There will be NO risk based fees for borrowers who want to lower their loan term
Fees will be lowered in general
The 125% loan to value maximum has been thrown out. There is no maximum loan to value.
No appraisal will be required if a reliable automated valuation model (AVM) is available. Note, the value is not a determining factor, rather the qualify of the valuation is what would determine if an appraisal is needed.
Borrowers who reduce their loan term will receive lower fees
Lenders who fund HARP refinances will not have to commit to special representations and warranties that have typically made lenders hesitant to work with HARP
The end date for HARP has been extended to September 30, 2017
I have been receiving many calls from borrowers who are being denied HARP Arizona loans at other lenders because their loan to value (LTV) is greater than 125%. If any borrower is experiencing a denial because your servicing lender is limited to 125% on HARP 2, please contact me.
For those who want to roll in your closing costs into your new loan, there are different rules depending on whether your loan is owned by Fannie Mae or Freddie Mac.
If you have a Fannie Mae loan – there is no limit to the closing costs and prepaid taxes and isnurance you can roll into the new HARP 2 loan.
If you have a Freddie Mac Loan – you cannot roll more than $5000 or 4% of your loan amount into the new HARP 2 loan, whichever $ number is less. For example, if your loan amount is $90,000 the maximum $ amount that you can roll into your new HARP loan is $3,600. If your loan amount is $200,000 the maximum $ amount that you can roll into your new HARP 2 loan is $5000.
HARP Arizona Updates
June 15, 2012
We are in full swing doing unlimited Fannie Mae and Freddie Mac HARP Arizona loans.
It is worth noting that several Banks across the country have lowered their HARP loan to value max limit back down to 105%. The culprit? Rumors about Fannie Mae and Freddie Mac not releasing banks from the representations and warranties (banks are on the hook for the performance of the loan). Waiving the representations and warranties requirement was probably the single most important factor in HARP 2 creation. HARP 1 failed because Fannie and Freddie kept the Banks on the hook for the performance of HARP loans. Conservative Banks don’t even want to think about the possibility of the risk associated with these loans. We’ll see what happens next.
May 9, 2012
Many Freddie Mac borrowers who have loan to values greater than 125% are finding it extremely difficult to find a lender to do their HARP 2 loan. Most banks have overlays that limit their ability to do Freddie Mac HARP Arizona refinances to a loan to value of 125%. The Good news is that we can do Freddie Mac and Fannie Mae HARP 2 loans with unlimited loan to values. Fill out the inquiry form below so we can start the process.
April 17, 2012
Borrowers with Lender Paid Mortgage Insurance (LPMI) can still have their mortgage insurance transferred to the new lender using a HARP Arizona loan. 3 different ways the premium of LPMI (Lender Paid Mortgage Insurance) is paid. If your scenario isn’t option 1, you probably will not see any benefit with the HARP 2 lower interest rate:
LPMI (lender paid mortgage insurance / SINGLE PREMIUM: Current lender paid the MI premium up front, at close of escrow. We will get the transfer of the certificate and no MI will be due by borrower now
LPMI / Annual Premium: Current lender is paying the Mortgage Insurance Payment Annually. The borrower will now be charged with the current Annual Fee PLUS Monthly MI impounded (Example: I had one, the cert came over, borrower had to come in with $3500 at close for the annual fee PLUS $291 per month in new MI monthly payment)
LPMI / Monthly Premium: Current lender is paying the MI Monthly. The borrower will now be charged with Monthly MI impounded
April 6, 2012
Things are moving along smoother nowadays with the HARP Arizona program. Fannie Mae is definitely easier to work with than Freddie Mac. Most important item to report is that banks still want to document your income, even if HARP 2 guidelines say differently. Why? It is a bank overlay, i.e., a ‘higher standard’ that they are adhering to in order to protect themselves from legal ramifications.
March 23, 2012
It has been a very hectic week and I have been on the phone with many customers trying to finalize their HARP 2 options. One thing is for sure, HARP 2 is not the slam dunk loan that is was made out to be. It is crucial that we run each scenario through Fannie Mae and Freddie Mac’s approval system to make sure we can actually get it approved. We are learning that just because a borrower is ‘eligible’ does not mean Fannie Mae and Freddie Mac will do the loan. Bottom line is that this program is still going to be very successful at refinancing borrowers down into lower rates…I will keep you posted!