Home Affordable Refinance Program (HARP)
  • Alex January 2012
    I have a townhouse that I still owe $153K on, but is only worth $80-100K;
    interest is 7%. I bought this property in 2007 and never missed a
    payment. I read somewhere that I could use HARP so long as I meet at 45%
    debt ratio. I meet this. Can someone please enlightened me on this
    HARP issue. Thank you.
  • nestJulia Sullivan (Savannah, GA) January 2012
    Hi Alex, you can find the information you need in this FannieMae FAQ pdf: https://www.efanniemae.com/sf/mha/mharefi/pdf/refinancefaqs.pdf

    I think Q58 should answer your question:
    Is there any requirement that the existing mortgage and the new mortgage represent the same occupancy?

    No. The occupancy of the subject property may have changed by the time of the new mortgage transaction. Because the loan represents existing Fannie Mae risk, there is no requirement that the occupancy has stayed the same. This may result in transactions that would not otherwise be permitted under standard guidelines, as follows:
        Investment properties that are manufactured housing;
        Investment properties that are cooperatives; and
        2-4-unit second homes.
    These types of transactions are permissible under Refi Plus (DU or manual). All existing restrictions on property types, such as condo hotels, continue to apply. (Note that occupancy changes for cooperative units may be subject to the cooperative’s rules and regulations.) As a general rule, if the existing loan was ineligible at time of delivery to Fannie Mae, the loan is not eligible for Refi Plus (DU or manual). If the loan became ineligible after delivery, the loan is eligible for Refi Plus (DU or manual).

    Hope this helps, good luck!
  • Alex January 2012
    That was fast, thank you Nest! Just need to read through that info.

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