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The guidelines of the new program that is being announced in the media this week have not been published or shared with lenders. As lenders, we would be VERY happy to have a loan product that would assist the many, many borrowers in your position… . HARP has been helpful, but has not applied to everyone – but we have not been given any hard information about the product to be unveiled. Without a product, we have nothing to offer, as we are bound by the guidelines published and supported for any “no equity” or “negative equity” loan. Please come back and post this same question in a week or two – we may have more information. Many will be asking the same.
You may have more options now that HARP is being expanded, BUT the biggest issue you have is the second mortgage. That lender must agree to let you refinance the first mortgage (subordinate their interest in the property) and second lienholders have widely varying requirements to do so. Your best bet is to look at a HARP loan once the new guidelines are in place, and in the meantime ask your second lienholder to email you their subordination requirements so you can provide them to your lender. Also probably not a bad idea to start your HARP search with your current lender, you may be able to qualify there with fewer stipulations than if you move to a new lender.
One main point is that under both the existing guidelines and the proposed changes, your first mortgage must be ‘owned’ by Fannie Mae or Freddie Mac (even if it’s being serviced by Citimortgage) to qualify for the HARP program. If not, it must fit under current LTV/CLTV guidelines, which typically only allow CLTV up to 95/97% (sometimes less).
Dexter
Does anyone have some good info on the new rules yet, or does anyone know what Citi is allowing people to do. My loan is a Fannie loan, I bought the house in 2008. We are not underwater, but we don’t have any equity. Would Citi let me do DU Refi Plus? Harp? Which is better? I just want a better rate and a lower payment. If there any way for this to happen? This is so frustrating. We 100% pay our bills and intend to pay this off but since the market is soft no one will refi and I think that Citi knows that and they don’t want to let us refi either so that way we are still paying 6% to them.
How will these new rules effect those who are responsible, employed, but just don’t have 20% equity?
I purchased a 345K 2-family home in Rockingham county NH in 2005. It appraised for 377K when we bought it. We got a “piggy-back” loan. Fixed 30-year primary mtg at 6% and a fixed rate 30-yr second mortgage at 6.5%
We pay on time every month, always have. We both have FICOs at 800. We are both fully employed with adequate income to pay for our bills.
We tried to Refi – or HARP, or anything that we could possibly qualify for, with Citi (who has our loans) and we ended up getting rejected for not enough LTV. Although the appraisal came in at 350K (many home improvements since purchase helped offset lousy market) Citi rejected the appraisal because of lack of true comps in our area. Still no decent comps since then either. It is a detached 2-family with 8 acres – nothing else like it around.
Just 2 months ago we gave it another shot with TD Bank. Appraisal came back at 275K which is a total joke. 1-family homes on 2 acres are selling for that much around here. Botched appraisal, but too bad, we still get no loan. We owe about 270K right now on both loans combined.
Are these new rules going to help us? Do you have to be low income for HARP? Can I get a decent 15-year or 30-year loan now with these new rules? Damn it man, we pay all of our bills and make good money but we can’t refinance at a decent rate? What is wrong with this picture? I am so frustrated that we keep wasting money on applications and appraisals!
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