The Mortgage Porter

HARP 2 Expanded Guidelines Available Next Month

During the weekend of March 17, 2012, possibly while you're enjoying an Irish HARP's at The Celtic Swell off the shores of West Seattle, Fannie Mae and Freddie Mac will be releasing the next set of expanded guidelines for the Home Affordable Refinance (coined HARP 2 or 2.0).

Many Washington area home owners with conventional mortgages closed prior to June 1, 2009 are eagerly looking forward to this St. Patty's Day so they can take advantage of the current low mortgage rates.  If you've been turned down for a HARP refinance before, you should consider trying again with this expansion.

HARP enhancements on the March 17 release include:

• No maximum LTV (loan to value) ratio for fixed rate mortgages;
• 105% maximum LTV for adjustable rate mortgage;
• More properties will qualify to have the appraisal waived, including primary residences, second homes and investment properties.

Borrowers still need to qualify with income, employment, credit and assets. If a borrower is relying on income from a second job to qualify, there cannot be any gaps of employment for that job in the last 12 months.  Fannie Mae DU Plus will also require 2 months of reserves for second homes and six months reserves to be verified for investment properties.

Some Washington home owners are not waiting until next month to refinance. If Fannie or Freddie are accepting the home's current value (generally it's underwater no more than 105% LTV) they may receive an appraisal waiver.  You may not have to wait either!  If we do not receive an response from Fannie or Freddie with an appraisal waiver, we can work on improving your credit or savings while we wait for the next expanded guidelines next month.

If your home is located in Washington state, I'm happy to review your scenario.  For your HARP rate quote, click here.

For more information about HARP 2.0, please click here.

I am required to have the language below if I am soliciting your Home Affordable Refi for your home in Washington...and yes, I would love to help you with your HARP (or any) refinance:

Freddie Mac and Fannie Mae have adopted changes to the Home Affordable Refinance program (HARP) and you may be eligible to take advantages of these changes.  

If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP.

You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:www.freddiemac.com/mymortgage orhttp://www.fanniemae.com/loanlookup/

 

Should I Refinance my 4.5% Mortgage?

I'm pricing out a scenario for one of my returning clients where I helped them with their refinance for their home in Seattle in May of 2009 to a 4.5% 30 year fixed rate. During that time, 4.5% was the lowest rate any of us had seen. Now mortgage rates have been in the high 3s to low 4s depending on current pricing and scenarios.  I thought it would be interesting to share the quotes I've provided my client because I know many others have rates around 4.5% and may be wondering the very same thing: should I refi?

This Seattle home owner has excellent credit (scores above 740) and has an estimated loan to value of 80% or lower. It's possible they may qualify for a Home Affordable Refi since Fannie Mae has securitized their mortgage, however they closed right at the time where it's possible the mortgage may not have been securitized before the May 31, 2009 cut-off. Once we run the loan through Fannie Mae's automated underwriting system, we'll know whether or not it qualifies to have the appraisal waived. At this point, I'm assuming not and therefore an appraisal fee is factored into the APR. 

Here's what I quoted as of 10:30 this morning on February 2, 2012:

3.750% will reduce the monthly payment by $150 and has estimated closing cost of $5620 (apr 3.909). My client will return to their current principal balance in approx. 15 months per the amortization schedule.

3.875% will reduce the monthly payment by $133 and has an estimated closing cost of $3660 (apr 3.891). My client will return to their current principal balance in approx. 14 months.

4.000% will reduce the monthly payment by $121 per month with estimated closing cost at $1779 (apr 4.080). My client will return to their current principal balance in approx. 11 months.

NOTE: Mortgage rates change constantly. For your personal rate quote on your Washington home, please click here.

The monthly savings is only one consideration. If this client were to sell in the near future, retaining his existing mortgage may be the better route as the payoff would most likely be lower with the existing mortgage for this scenario. However, if the home owner does not have plans on selling or is considering converting his home into a rental in the distant (more than 12 months) future, or if the home owner is going to use the extra monthly savings to pay off high interest credit card debt or to build savings, the refinance gains more value.

Whether or not someone should refinance is a personal decision where short and long term financial plans should be reviewed. 

If you are considering refinancing your home located anywhere in Washington, I'm happy to help you. Click here for your personal rate quote.

President Obama's Refi Plan for Non-HARP Qualified Homeowners

On last week's State of the Union Address, President Obama announced a plan to help underwater homeowners who do not qualify for a Home Affordable Refinance.  In order to qualify for a Home Affordable Refi (aka HARP 2.0) the home owner's mortgage needs to have been securitized by Fannie Mae or Freddie Mac prior to June 1, 2009 and meet other qualifications.  If the home owner currently has a jumbo loan, they are instantly disqualified for HARP 2.0. since jumbo mortgages are non-conforming (not Fannie or Freddie programs). HARP is also restricted by existing conforming loan limits and in the greater Seattle area, the current conforming loan limit is $506,000.  Even if you have a conforming loan amount of $567,500 (last year's conforming loan limit in Seattle), current HARP guidelines limit you to a $506,000 loan amount.

President Obama's proposal is to help underwater home owners who have made their mortgage payments on time and who do not qualify for HARP 2.0 is to allow them to have an FHA insured mortgage without an appraisal.  FHA insured mortgages have different loan limits than conforming. In the Seattle area, the FHA loan limit is $567,500. Obama's new refi program, should it come to fruition, will be limited to FHA loan amounts. 

FHA mortgages are a great program, however they're also very expensive when compared to conventional loans.  This is because they have both upfront and monthly mortgage insurance fees, which are constantly being raised by Congress. FHA mortgages have both upfront and monthly mortgage insurance regardless of the loan to value of the property. 

As of 8:30 this morning, an FHA rate on a loan amount of $567,500 in Seattle - Bellevue with a 720 or higher credit score is 3.750% for a 30 year fixed rate (apr 4.767).  Principal and interest with the financed UFMIP is $2,654.46 and the monthly mortgage insurance premium is an additional $515.85 for a total (PIMI) payment of $3,170.31, not included property taxes and insurance.  This PIMI payment equals an interest rate in the low-to-mid 5% range if you compare it to a conventional mortgage.

This program is also costly as Obama plans to pay for it by charging banks additional fees and we all know that this trickles down to the consumer. The Temporary Payroll Tax illustrates how banks have increased mortgage rates AND the cost to extend a rate lock commitment.

It's reported that the new program will not require an appraisal or proof of income and will be available for primary residences only. Employment will need to be verified and mortgage payments must have been made on time for the last 6 months.  Although this is "Obama's Refi Plan", we have to wait and see if Congress approves it and how the big banks and lenders will embrace this program.

If you currently have an FHA insured mortgage, you don't need to wait and see if Obama's refi plan will help you. You may already be able to refinance with an FHA streamlined refi without an appraisal. 

If you would like to stay informed of mortgage programs like this, please subscribe to my blog (upper right corner) or follow me on Twitter and Facebook.  You can unsubscribe anytime!

If you are interested in a mortgage for a home located anywhere in Washington state, I'm happy to help you! I have been originating all types of loans at Mortgage Master Service Corporation since 2000.  Click here for your no-hassle mortgage quote on your Washington property.

Fannie Mae's Home Affordable Refi HARP 2.0 (DU Plus) Update on LTVs and Appraisal Waivers

You won't need the luck of the Irish to refinance you underwater home in the Seattle (also known as the Emerald City) or anywhere in Washington after Saint Patrick's Day. The weekend of March 17, 2012 is when the next phase of HARP 2.0 will be officially released. And you may not need to wait until March for your HARP refinance; many are taking advantage of lower rates and refinancing now!

Per Fannie Mae's Release Notes issued yesterday for DU Refi Plus - HARP 2.0, we'll have the following enhancements:

• No maximum loan to value ratio for fixed rate mortgages with terms up to 30 years
• 105% maximum loan to value ratio for fixed rate mortgages with terms greater than 30 years and for adjustable rate mortgages 

Even though Fannie Mae states the loan to value caps will be removed, it's also noted the appraisal waiver will be "updated to further increase the number of loan casefiles that are considered for the...waiver".   

This update states the following transactions will be "eligible for consideration" to have the appraisal waived:

• one-to-four unit properties;
• primary residence (owner occupied), second or vacation homes and investment properties;
• loans with a loan to value or combined loan to value (second mortgages) over 125%;
• attached (condos, townhomes) and detached properties.

You may not have to wait until March to refinance depending on how underwater your home is. I'm currently working with clients from Des Moines, Kent and Seattle who had their appraisal waived and will be closing well BEFORE March as long as Fannie Mae estimates your loan to value is 105% or lower. It's unknown what value Fannie Mae's system will accept for your home until it is submitted to their automated underwriting program (DU).

Another reason NOT to wait until March to start your HARP application is to make sure your credit and debt-to-income ratios are in line.  Beginning your application today will allow us to review your current credit scenario to help assure you're in the best position to proceed with your refi, even if you have to wait until March for loan-to-value reasons.

From reading today's release notes, it looks like not all loans will qualify to have their appraisals waived...however you won't know unless you try!  It's also important to keep in mind that that banks and lenders may have their own underwriting overlays in addition to what Fannie Mae or Freddie Mac offers with this (or any) program.

I am encouraging Washington home owners to contact me for a rate quote. If it looks like we should wait until closer to March to proceed, we can keep your information and try again at that time.

If you have any questions about HARP 2.0 or any mortgage for homes located anywhere in Washington, please contact me!  If you want to stay informed, subscribe to my blog!

I am required to have the language below if I am soliciting your Home Affordable Refi for your home in Washington...and yes, I would love to help you with your HARP (or any) refinance:

Freddie Mac and Fannie Mae have adopted changes to the Home Affordable Refinance program (HARP) and you may be eligible to take advantages of these changes.  

If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP.

You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:www.freddiemac.com/mymortgage orhttp://www.fanniemae.com/loanlookup/

Should You Refinance Now or Wait for the New HARP Program?

Today someone body found my blog by googlineg: "Should I refi now or wait for the new HARP program". This is such a great and timely question that I thought I'd take a few moments to answer. 

The "new HARP" is actually available now on applications that are dated December 1, 2011 and later.  HARP (Home Affordable Refinance Program) is for mortgages that were securitized by Fannie Mae or Freddie Mac prior to May 31, 2009. This is different than who your mortgage servicer is (who you make your mortgage payments to) and the date the mortgage was securitized is often several weeks after the actual date your transaction closed. 

Washington State home owners are eligible for this program are especially excited for the "new HARP" (also referred to as HARP 2) because of the expanded loan-to-value guidelines.  Owner occupied homes will eventually have the 125% loan to value limit removed making it possible for more home owners who have made their payments on time but have lost equity in their homes to refinance into a fixed rate mortgage. Those opting for an adjustable rate mortgage will have a maximum LTV of 105%.

Why would somebody wait to refinance?  HARP 2 is releasing the expanded guidelines in phases. Fannie and Freddie are allowing lenders to offer HARP (DU Plus and Open Access) with March 15, 2012 being the date that loan to value restrictions are removed for this program. 

Another reason some home owners are waiting is that some private mortgage insurance companies and mortgage servicers are working out the final details on how to transfer or reissue pmi certificates. With HARP 2, borrowers with pmi should have more possibility of being able to refinance.

Why you should begin the refinance process now. I'm currently helping several Washington home owners with their HARP refi without an appraisal being required. After we receive the full loan application, we submit the loan to Fannie or Freddie's automated underwriting system to see what our approval is and what the conditions may be. Many HARP refi's are being now approved with the apprasial being waived which allows my client to decide if they'd like to lock in today's low rate now or wait and float their interest rate. 

If we discover that Fannie or Freddie are not accepting the value based on the current phase of HARP we are in, we continue the application and wait for the next phase to try again. This gives us time to work on anything that may need a little extra attention such as reducing debt to income ratios or improving credit scores. 

This also provides an opportunity to get our ducks in a row and have your application completely ready so that when and if your transaction is approved without an apprasial being required, you're in position to close rather than starting with volumes other home owners hoping for their HARP refi.

We are currently accepting applications for HARP 2 refinances for homes located in Washington, even if some of the refinances may have delayed closings. I have several clients who are getting ready to close just after the new year, enjoying the benefit of their much reduced mortgage payments.

If your home is located anywhere in Washington State, I'm happy to help you with your refinance, click here for a HARP 2.0 rate quote.

I am required to have the language below if I am soliciting your Home Affordable Refi for your home in Washington...and yes, I would love to help you with your HARP (or any) refinance:

Freddie Mac and Fannie Mae have adopted changes to the Home Affordable Refinance program (HARP) and you may be eligible to take advantages of these changes.  

If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP.

You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:www.freddiemac.com/mymortgage or http://www.fanniemae.com/loanlookup/

 

Refinancing when you have an existing Second Mortgage or HELOC

When you are refinancing your primary mortgage and you have an existing second mortgage or HELOC (home equity line of credit), the new lender will require to stay in "first lien position". This boils down to who has first dibs on a property in the event of a foreclosure. Lien position is determined by the date the mortgage was recorded. When you refinance your first mortgage and you have an existing second mortgage, the new mortgage will have a recording date that is after the existing second mortgage. Technically, that would put the second mortgage or HELOC in "first lien" position, which would not be allowed with the new lender.

What are your options when you have a second mortgage and want to refinance? NOTE: please review your options with your mortgage professional before you take any action as there may be certain procedures that need to be followed in order to have a successful refinance. 

1. Pay off and close the second mortgage with your own assets.
2. Pay off and close the second mortgage with the refinance.  
3. Restructure the mortgages with a simultaneous new first and new second mortgage. (Yes, piggy back second mortgages have returned).
4. Request the second mortgage subordinate their lien position with the new first mortgage. 

Pay off and close the second mortgage with your own assets. This seems like a pretty straight forward solution assuming you (a) have the additional assets and (b) this is how you want to use those assets. Even if you have a "zero balance" on your HELOC, the lender may have to consider the full line of credit into your debt to income ratios (as if you have maxed out your credit line). If you do select this option, please do consult your mortgage originator.

Pay off and close the second mortgage with funds from the refinance. This may work assuming you have enough home equity to increase your loan amount to include the second mortgage with your refinance. If you obtained the second mortgage after you purchased your home, including it in the refinance creates a "cash out refinance" which has different guidelines and loan to value restrictions than a "rate term refinance". If you are considering a HARP (Home Affordable Refinance Program) refinance, the second mortgage cannot be included in the refinance regardless of when it was acquired.

Restructure your mortgages with a new first and second mortgage (piggy back). Lenders are offering piggy back second mortgages again. If you have enough home equity, this may be an option to consider. The lenders I work with currently offer up to an combined maximum loan to value of 85% and you must have a 720 credit score or higher.

Request the second mortgage subordinate their lien position. If the above options are not available or appealing to you, the new lender will require that the second mortgage (or heloc) subordinate their lien position. This isn't something that the second mortgage is required to do - it is up to the second mortgage lien holder IF they will allow the subordination to take place. With a subordination, the second mortgage still exist and the terms will remain the same (unless the second mortgage requires adjustments to the credit line).

This process generally does not take place until towards the end of the refinance process, when there is a loan approval with the new first mortgage, often times including an appraisal. The request is submitted to the second mortgage, often with a fee ranging from $100 - $300, for review. I have seen subordination request approved with no issues, approved with the HELOC being required to be paid down with the credit line reduced or closed and sometimes subordination request are not approved. It's one of those situations where "we won't know until we get there".  Worse case scenario, a home owner could be out their deposits for the appraisal and request for subordination fees. 

If a home owner is refinancing with a Home Affordable Refi (HARP 2) and requiring a subordination, assuming their appraisal is waived, if the second lien holder denies the subordination, they've probably only lost their request for subordination fee (and time). It's also possible that the second lien holder may require an appraisal to process the subordination even though the first mortgage (new HARP refi) is not requiring one.

I'm hoping that second mortgages will be more flexible, as are private mortgage insurance companies, with HARP 2 and allow more subordinations without appraisals. It only makes sense to allow the home owner to reduce their monthly payments which reduces the chance of foreclosure. However, banks don't always do what is "common sense". If you qualify for a HARP refi, and you do not have a waived appraisal during this phase, you may want to wait for the next release of expanded guidelines.  

If you are interested in refinancing your home located anywhere in Washington, please contact me, I'm happy to help you!  Click here for a HARP 2 rate quote and here for all other mortgage rate quotes.

Information about HARP 2.0: Fannie & Freddie's Home Affordable Refi

Harp 2.0 Home Affordable Refi Program

View more presentations from Rhonda Porter.

If you would like to see a detailed rate quote for a HARP 2.0 home affordable refinance for your Washington home, click here.

Home Affordable Refi aka HARP 2.0 Phase 1

Fannie Mae and Freddie Mac' s Home Affordable Refi enhancements will be released in phases with the first version of HARP 2.0 becoming available tomorrow, December 1, 2011.  The next phases will allow for expanded loan to value requirements and pricing enhancements. Fannie Mae will have an update to their selling guide in mid-December (so more information to follow).  Freddie Mac and Fannie Mae plan on having their underwriting system (DU and LP) updated on or before mid-March 2012. I will continue to keep you posted as we learn more information.

Here's my recommendation for Washington area home owners who may be eligible for a Home Affordable Refinance:

• You can apply for HARP 2.0 tomorrow, December 1, 2011.  
• We should be able to determine whether your loan qualifies based on the current "phase" available.  We are able to re-run your scenario during the next phase of HARP, if needed.
• Loan to values under 80% may not qualify for the new Home Affordable program but you may still be able to take advantage of today's lower rates. 
• Some of my refinance clients have already had their appraisals waived with their Fannie-to-Fannie DU Plus refinances. 
• Unless you have an owner occupied or second home and are opting for an amortized mortgage of 20 years or less, the pricing difference with HARP 2.0 may not be that significant.
• I'm happy to provide you with a Home Affordable Refi rate quote.

Here are some pointers on what you can do to prepare for your Home Affordable Refinance. 

I'm still waiting to hear from all of the private mortgage insurance companies to see if and how they will participate in this program.  We are also waiting to see how the lenders and banks we work with are going to treat this and if they've added layers of overlays to this program.  

UPDATE 12/15/11: If you qualify for a HARP refinance and have borrower paid private mortgage insurance, as long as the insurance can be transferred, we can help you. Lenders (secondary markets) and private mortgage insurance companies are working on allowing this for lpmi (lender paid mortgage insurance). More info on LPMI to follow. 

I am required to have the language below if I am soliciting your Home Affordable Refi for your home in Washington...and yes, I would love to help you with your HARP (or any) refinance:

Freddie Mac and Fannie Mae have adopted changes to the Home Affordable Refinance program (HARP) and you may be eligible to take advantages of these changes.  If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP. You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites: www.freddiemac.com/mymortgage or http://www.fanniemae.com/loanlookup/

If you have any questions about this or any mortgage program and your property is located in Washington state, I'm happy to help you.  I am only licensed to originate mortgages in Washington state.

Bottom line: we are still receiving (and waiting to receive) more information about the HARP 2.0 enhancements and bank/lender overlays.  However you can start your application on December 1, 2011 and "float" your rate, if needed.

Would You Like a HARP 2.0 Rate Quote for your Home in Washington State?

UPDATE 11/30/11: If you prefer to use our online form to provide us with information for your rate quote for a Home Affordable Refi in Washington, click this link.  Or you can copy and paste the questions below and send me your info via email.

Here are 10 quick questions that I need answers for in order to provide you with a quote (if your answers on 1-3 are "yes", please proceed with the remaining questions for your HARP 2.0 rate quote):

1. Is your home located in Washington State? [I'm only licensed to originate mortgages on residential property located in Washington].
2. Is your mortgage securitized by Fannie Mae or Freddie Mac?  [You can click these links to verify].  
3. Did you close on this mortgage prior to June 1, 2009? [Note: HARP is available for mortgages "securitized" by Fannie Mae or Freddie Mac before 6/1/09 - "securitization" actually takes place after closing.
4. Do you currently have private mortgage insurance and/or lender paid mortgage insurance?
5. Do you have a second mortgage/home equity line of credit? If so, what is the mortgage balance? [Note: second mortgages cannot be included in the HARP refi and will be subject to their approval to be subordinated]
6. What is the principal balance of your mortgage?
7. Is this property your: primary residence, second home or investment?
8. Is this property a condo, townhome or single family residence?
9. How do you rate your credit?  Excellent, pretty good, good, okay or blemished - if you know your credit scores, please provide them.
10. What program do you like to see quotes on: FIXED: 30 year, 20 year, 15 year, 10 year; or ADJUSTABLE: 5/1, 7/1 or 10/1.

Since this program is availalbe for applications that are dated December 1, 2011 or later, we just need the information provided above to create a rate quote.  You can copy and paste this with your answers into an email and send to rhonda (at) rhondaporter (dot) com. Or use this form. We will then gather other information (such as title and escrow fees) so that we can promptly provide you a quote as soon as the program and rates are available. 

All mortgage lenders are going to be deluged with request for HARP 2.0 since loan to value limitations are being removed for the fixed rate products; here are some tips on what you can do to get prepared while you wait for December 1 to arrive. 

NOTE: As we learn more about this program, we will continue to update you here at Mortgage Porter.  Read my latest post about the Home Affordable Refinance Program.

UPDATE 11/30/11: I am just beginning to receive guidelines from the lenders we work with for Freddie Mac and Fannie Mae's Home Affordable Refinance programs. These pages will be updated as we receive more information:

Fannie Mae - Home Affordabe DU Refi Plus

Freddie Mac - Home Affordable Streamline Refinance - Open Access

What You Need to Know about HARP 2.0: the Home Affordable Refinance Program

Yesterday, we received more details about the new and improved Home Affordable Refinance Program (HARP 2.0) which is available for home owners who have a conventional mortgage that was securitized by Fannie Mae or Freddie Mac prior to June 1, 2009. (Securitized is different than your close date and takes place sometimes several weeks AFTER your loan has closed).  

I've written more information about HARP 2.0 here.  HARP 2.0 removes the loan to value cap of 125% and allows some transactions to take place without an appraisal. If your mortgage qualifies for this refinance program, it is well worth your time to obtain a rate quote to see if you can reduce your mortgage payment, shorten your term or fix your adjustable rate mortgage. If your home is anywhere in Washington State, I can help you with your home affordable (or any) refinance.

Here's what you need to know about HARP 2.0:

• HARP 2.0 is effective for loan applications dated December 1, 2011 or later. Here's what you can do to prepare while you wait to apply for HARP 2.0.
• For your primary residence, if you opt for a 20 year fixed term or shorter, there are no additional hit to fees (LLPA - risk based pricing). Should you select a 30 year fixed term, the "hit" to fee is limited to 0.75%.  Read more about Fannie Mae's LLPA's here.  What this means in a nut-shell is that HARP 2.0 will have lower rates than other conventional (non-harp) refis.  
• Fixed rate mortgages will not have the 125% loan to value restriction (no maximum loan to value); however should you opt for an adjustable rate mortgage, the maximum loan to value will be 105%. [update: higher loan to values will be increased in phases for this program].
• No mortgage lates are allowed during the last six months and only one late payment allowed during the last year (seven to twelve months ago).
• YOU  DO  NOT  HAVE  TO  RETURN  TO  WHERE  YOU  MAKE  YOUR  CURRENT MORTGAGE  PAYMENT  TO  FOR  YOUR  NEW  HARP 2.0  REFINANCE.  ...Yes, I'm shouting :)  If your home is located anywhere in Washington State, I can probably help you with your refinance. However...
• Borrowers who currently have LPMI (lender paid mortgage insurance) need to return to their current mortgage servicer (who they make their mortgage payments to) for a HARP 2.0 refinance.
• HARP is available for owner occupied, second or vacation homes and investment properties. It's okay if the occupancy type has changed from when you obtained your last mortgage. If your previous primary residence is now a rental, this is acceptable with HARP.
• Condos should not require additional review as long as there is adequate insurance coverages in place for HARP 2.0.
• HARP loan amounts are limited to current conforming loan limits and does not grandfather the previously higher "temporary" loan limits. The conforming loan limit in the greater Seattle area for a single family dwelling is $506,000 through 2012.
• A Borrower may be removed from a HARP refinance (divorce, etc.) as long as they can document that the remaining borrower has been making the mortgage payments with their own funds the past 12 months. (This is not a new guideline). If the refinance's purpose is to "buy-out" the borrower, it will not qualify for a HARP refinance.
• A few borrowers who previously refinanced using HARP may be able to refinance using HARP 2.0 (loans acquired by Fannie Mae between March 1, 2009 and May 31, 2009).
• If you have a second mortgage or HELOC, the second lien holder still needs to approve the refinance and agree to be subordinated.

So now we wait for December 1st and for our wholesale lenders and banks to adopt Fannie and Freddie's revised HARP 2.0 guidelines. Here is what you can do to get ready before you apply on December 1, 2011.  We are preparing to accommodate your request for HARP 2.0 rate quotes and transactions - the more prepared you are will make your transaction progress more smoothly.

We are now accepting requests for HARP 2.0 rate quotes for homes located anywhere in Washington State. You are welcome to submit a rate quote request, which will be sent to you once the new HARP 2.0 rates are available (December 1, 2011 and later).

NOTE: For HARP 2.0, we are pleased to offer Fannie Mae DU Plus and Freddie Mac Open Access for Home Affordable refinances.