Many people today do not relies that there are mortgage options available for properties with negative equity. I recently spoke with the Broker of MN Capital, Michael TenEyck, and was surprised to learn that a home value is irrelevant when refinancing with the HARP 2.0 program. Many Lender’s will tell you otherwise as they have self-imposed loan to value limitations within guidelines. TenEyck gave me two examples of HARP 2.0 loan that MN Capital has recently closed which I will share below;
Owner Occupied property
- Homes Value – $225,000
- Loan amount – $340,000
- Current Loan to Value – 151%
- New Loan – 30 Year Fixed at 4.25%
- Homes Value – $230,000
- Loan amount – $315,000
- Current Loan to Value –136%
- New Loan – 30 Year Fixed at 4.50%
The above loan structures are deals that I have not seen done by any other Lender to date. The HARP 2.0 loan program only has a few qualifying requirements. Your loan must be owned by Fannie Mae or Freddie Mac prior to June 1st of 2009. You will need to meet forgiving debt to income and credit ratio requirements for the HARP 2.0 program. There are a few other items needed to qualify but those are the two major items. To find out if your loan is owned by Famine Mae or Freddie Mac click on the below links and follow the instructions. Do not be fouled thinking that your loan is owned by a major bank because you make your payment to them. Banks today, in many cases, act much like a property manager does when you rent an apartment but that is a topic for a later date. It only takes a few minutes to find out and the reduce mortgage rate could benefit you greatly.
Fannie Mae – http://www.fanniemae.com/loanlookup/
Freddie Mac – https://ww3.freddiemac.com/corporate/
If you have spoken with your lender and they told you they could not help you due to your debt it income, loan to value or if you have existing mortgage insurance then MN Capital might be able to help. I asked the mortgage insurance question of the broker and the answer was clear. If you have mortgage insurance before the HARP 2.0 refinance then you will have it after. If you do not currently have mortgage insurance before the HARP 2.0 refinance then you will not have mortgage insurance with the new loan. There are even a few ways to eliminate mortgage insurance after you refinance with the HARP 2.0 program. You would have to speak with the Broker to get your individual details as it is different with ever borrower.
You can reach MN Capital online at – www.mn-capital.com