Oshkosh Mortgages

HARP 2 0 Loans

General Information:

HARP or Home Affordability Refinance Program is designed to help people that need new more affordable mortgage. It is either owned or guaranteed by Freddie Mac or Fannie Mae. As an active participant in HARP, Patriot Mortgage is here to answer questions you may have about HARP. See if a HARP 2.0 Loan is for you.

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Target Audience:

Home owners that have been current on their mortgage payments for the last year but are unable to refinance because they owe more than the current value of their home.

What is a HARP 2.0 Loan?

Also known as the Making Home Affordale plan, DU Refi+, and Releif Refinance, HARP or Home Affordability Refinance Program was started in April of 2009. The HARP Loan gives the applicant an option to shorten terms on the loan and pay down the remaining balance of the loan at a faster rate. The problem with the original HARP Loan is that it was hard to get. The HARP 2.0 Loan is the HARP loan with modifications to make it available to as many people as possible.

What are the changes in the HARP 2.0 Loan that help my eligibility?

  • The first version of the HARP loan in 2009 did not allow refinances for borrowers who owed more than 125 percent of their home value. With HARP 2.0 this limit is removed.
  • Fannie Mae's "reasonable ability to pay" clause was removed which means that as long as the new payments don't increase by 20% that banks are no longer required to look into the applicant's ability to pay.
  • In the last year if you've had 1 late payment and no late payments in the last six months you can still be eligible.
  • The original deadline to apply for the HARP loan was June of 2012. With HARP 2.0 this has been extended until December 31st of 2013.

What are the eligibility requirements for the HARP 2.0 Loan?

  • Your mortgage must be owned by either Fannie Mae or Freddie Mac and sold before June 1st, 2009. Note: it is very common to have one party service the mortgage such as the party responsible for collecting payment while another party is responsible for backing the loan. As an example: your mortgage could have been serviced by a bank like Bank of America, Chase, CitiMortgage, or Wells Fargo as a few examples. Although it is possible that they may be able to service and back the loan, it is also very possible that your loan was backed by Fannie Mae or Freddie Mac. Please talk to us and we can help you see who your mortgage loan was backed by if you are not sure.
  • Your mortgage must be at least 80% of the value of your home and there is no maximum percentage with HARP 2.0.
  • Your mortgage payments must be current but you are allowed one late payment (defined as a payment received over 30 days late).
  • The new terms must be more affordable than the previous loan.

What are examples of benefits with a HARP 2.0 Loan?

  • Lower interest rate.
  • Lower monthly principal and interest payment.
  • Shorter loan term.
  • Loan moved to a more stable product such as moving from an adjustable-rate mortgage to a fixed-rate mortgage.

Do I have to live in Ozaukee County to get a HARP 2.0 Loan?

No. Patriot Mortgage Lending offers mortgages throughout the entire state of Wisconsin. We are here to help.

Do I have to live in Ozaukee County to get a HARP 2.0 Loan?

Now is the time to act. The HARP 2.0 deadline is December 31st, 2013. Please see the next section below to get an idea of how the loan process works.

How Does the Loan Process Work?

  • Education:The objective behind the HARP 2.0 Loans is to reach out to as many people in need as possible. However, there are requirements that need to be met and we will work with you to make sure that you meet the requirements of the HARP 2.0 Loan. If the HARP 2.0 Loan is the best option for you we will continue with the application process. If not we will work with you to help improve your current situation. Your journey begins with the loan officer.

  • Application: At this point you and your loan officer have determined the HARP 2.0 is correct for you. Now we have to do the official paperwork. This is not like a car loan or other types of lower dollar loans that you might have encountered in the past. Obtaining this loan is a team effort that involves paperwork, processing, underwriting and approval. We will help you with the application process. To get started just click on the "Quick Quote" on the left side of this site or just contact us and we will work together on the application. Here are the key items that we will need when we start the application process:
    • Standard Personal Information such as name, phone number, email address, date of birth, etc.
    • Employment Information such as where you work, how much you make, how long have you worked there, etc.
    • Assets such as checking / savings info, retirement accounts, etc.
  • Processing: Now that the paperwork is complete it is time to get to work and get you in your new home. Here is a behind the scenes look of what happens after your application has been submitted. This is where the loan processor comes into play:
    • Your application will be reviewed to ensure a smooth and efficient underwriting process. If there is something that the loan processor needs they will work with your loan officer. If there is additional information needed from you, then your loan officer will be in contact with you.
    • After the loan processor has what they need, traditionally a home appraisal and the title insurance binder would be ordered. However, as long as an automated valuation model is available the loan processor no longer is required to get an appraisal. Next the Loan goes to underwriting.
  • Underwriting: You've been educated about the HARP 2.0 Loan by your loan officer. The application has been completed. The loan processor has approved all materials needed. So what does the underwriter do?
    • The underwriter is ultimately responsible for approving your loan.
    • They will review your entire loan file which contains everything mentioned above.
    • In addition they will check credit, capacity, and collateral.
    • Upon approval of the loan the underwriter will send the loan to closing.
  • Closing: It's time to feel the positive impact that the HARP 2.0 Loan can offer! You are moments from the finish line. Today all parties involved make sure that all i's are dotted and all t's are crossed. It is a series of lots of paper signing, but because you have been educated in this process you already know what to expect and how this final part works. Each form that you need to sign will be reviewed with you and you have as much time as you need to ask as many questions as you would like on each form. Once the last form is signed you will get a copy of all your mortgage paperwork and you can reap the benefits of the HARP 2.0 Loan immediately!