HARP LOANS

Home Affordable Refinance Program

The HARP loans are for people that are "underwater" but have made their house payments on time and maintained their credit.  Mitus Mortgage has chosen to participate only with the Fannie Mae (FNMA) programn, for now.  You must check to see if your property is eligible with Fannie Mae at:                http://www.fanniemae.com/loanlookup/

If the web-site shows your loan is not a Fannie Mae loan, and you know it is, call your current lender and have then check their record and send a correction to Fannie Mae.  Fannie Mae corrects their record every 30 days.

The program is for O/O, N/O/O and 2nd homes. 

Why HARP 2.0?:  There are approximately 6.7 million loans eligible.  California has approximately 30% "underwater" loans.

Effective Dates:  The mortgage had to have been delivered to Fannie Mae on or before May 31, 2009.  This is the delivery date not the closing date. It can not be a loan with an outstanding re-purchase request to the current lender.

Maximum LTV/CLTV:  No maximum LTV at this time for 30 year fixed mortgage.  15 year mortgage willl be available shortly. Loan terms available for 20 & 25 year programs. Cash out to borrower can not exceed $250 and any amount over that will be applied to the new loan balance.

Subordinate Financing:  Existing subordinate financing must re-subordinate.  No new subordinate financing is permitted.  No restriction on terms of existing subordinate financing.

Mortgage Insurance Requirements:  Some lenders will accept the transfer of mortgage insurance from the existing MI company. 

Eligibility Criteria:  The lender will accept DU (desktop underwriting) approvals.  No manual underiting.  Loans will be conditioned subject to final DU approval.  Subject to additional conditions from the lender.  Some properties will need a new appraisal and other will need a reliable internal AVM. 

Underwriting Requirements:  No 60 day lates in the past 12 months on any mortgage.  Must be a benefit to the borrower.  Minimum income documentation: salary/hourly - 1 paystub and verbal VOE.  Commission/self employed: 1 year current federal return.  Maximum DTI: determined by DU.  Bankruptcy and foreclosure: standard Fannie Mae guidelines apply,  No limit to number of financed properties owned.

Borrowers Eligibility:  Borrowers may be removed from loan for any reason provided remaining borrowers show proof of making payments for 12 months, and borrower being removed is also removed from the deed.  In the case of borrowers being removed due to death, evidence of remaining borrower's 12 month payment history is not required with evidence of deceased borrower's death certificate.  Borrowers may be added in the new transaction provided the original borrower(s) remain on the loan.  Occupancy changes of subject property are permitted.

Property Valuation:  DURP (Du refi plus) property fieldwork waiver (PFW) will be offered on certain loan case files.  The  fieldwork wavier is based off the final DU findings.  If a full appraisal is provided it must meet standard eligibility guildelines.  Escrow waivers will be allowed only when escrows on the current loan are waived.  The Good Faith Estimate will disclose the "worst" case showing the fee's for a full appraisal, 30 days interest and any other fee's that could change and actually be lower.

REMEMBER: LOAN PROGRAMS, TERMS, INTEREST RATES, LENDER FEE'S AND CONDITIONS ARE SUBJECT TO CHANGE WITHOUT NOTICE.