How to Refinance An Up Side Down Mortgage in Temecula, Murrieta or Menifee

The new Home Affordable Refinance Program (HARP 2) just made it easier to refinance an upside down or underwater mortgage in Temecula, Murrieta or Menifee.

The Federal Housing Finance Agency (FHFA) just announced October 24th there no longer is an LTV limit to refinance an upside down mortgage in Temecula, Murrieta, or Menifee.  Prior to now, the max loan-to-value (LTV) allowed when using the HARP Fannie Mae DU Refi Plus or the Freddie Mac Open Access Relief loan program was 125%, but most lenders capped it at 105%.  That’s a big deal! 

It’s a big deal because lenders were fearful that these high LTV borrowers would default in the future and Fannie Mae/Freddie Mac would force the lender to buy back the loan.  Loan buy backs can push a lender into bankruptcy very quickly.

Get a new HARP Refinance Rate Quote now!

Because of the extreme loss in home values and inability to refinance or qualify for a loan modification, many home owners in Temecula, Murrieta, and Menifee purposely foreclosed, walked away or short sold their home.

These homeowners were not being rewarded for having a stable job, making payments on time, maintaining good credit, and still being able to afford their mortgage.  As a result, many of them walked away or short sold.

The new Home Affordable Refinance Program (HARP 2 / Obama Refi) no longer an LTV limit and Fannie Mae/Freddie Mac cannot force a buy back of the loan if a borrower defaults (except for fraud).  This results in less risk for the lender to now offer this loan program!

Key Guidelines to Qualifying for the New HARP Loan

  • Your current loan must be owned by Fannie Mae or Freddie Mac.  This does not include FHA, VA or USDA.
  • Loan must have been originated before 6/1/2009
  • No credit score required – but it can impact qualifying rate
  • No late payments in the last 6 months, & no more than one 30 day late in the last 12 months
  • Full appraisal may not be required
  • Closing costs can be included in the loan
  • Income & employment may or may not be verified

More details and HARP Frequently Asked Questions (FAQ’s)

Make sure you consider the benefit of refinancing into a 15 or 20 year fixed loan when considering this HARP refinance  Why?  Because the revamped HARP loan waives certain rate and fee adjustments when a borrower chooses a shorter fixed term mortgage.  This will result in the lowest interest and savings possible…..not to mention pay your home off sooner!

STEP ONE – Find out if your loan is owned (click the links) by Fannie Mae or Freddie Mac

STEP TWO – Find out how much you can reduce your payment by refinancing and find out if you qualify.  That means call me direct (951) 215-6119, contact me, or fill out the simple HARP Refinance Rate Quote.

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One Response to How to Refinance An Up Side Down Mortgage in Temecula, Murrieta or Menifee

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