Greg Cowart on Zillow
Greg Cowart - Mortgage Broker or Lender at The Securus Group
Greg Cowart - Roseville Loan Guy

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New High LTV Refinance Announced, HARP extended

The FHFA (Federal Housing Finance Authority, parent of Fannie Mae and Freddie Mac) recently announced a new streamlined refinance program for homeowners without a lot of equity, as well as an extension to the HARP program.

These are related announcements as HARP is the current solution offered to certain homeowners that would like to refinance but otherwise couldn’t due to a lack of 20% equity, and the new program will replace HARP after HARP’s newly extended end date of Sept 30th, 2017. I’ve talked about HARP plenty here over the years, so you probably already know all about it, what’s more important here is the post HARP world we’re about to be living in on October 1st…

The new program will be providing a sustainable refinance opportunity for borrowers without much equity that have demonstrated responsibility by remaining current on their mortgage payments. It makes sense for both American homeowners and the FHFA, as it will help people lower their mortgage payments which ultimately reduces the risk that they will be late or default on their mortgage.

To qualify for the new program homeowners must not have missed (been over 30 days late on) any mortgage payments in the previous 6 months, must not have missed more than one payment in the previous 12 months, must have a source of income, and the refinance must result in a benefit (such as a reduction in their mortgage payment). The new refinance does not require a minimum credit score, no maximum debt to income ratio, and an appraisal will often not be required.

When the final details have been announced you’ll find them here! Until next time…

– Greg

(916) 330-4652

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