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HARP Refi Denied - What's HARP?

We have a rental property we are trying to refi to a lower rate from 9% - yes 9. My wife bought the place before we married and got suckered by WF. Anyway, called WF to refinance with both of us as the loan is originally under her name only. GFE was rec'd with a nice rate. Mid score they are using is 640 and a back end dti of 24%. Today, we got a denial letter with the reason being marked off as "OTHER: Does not qualify for HARP Program". Well, did some research and looks like HARP is a refi program for homes that are under water as far as LTV, or something. I can see how this could be a problem for us as the current mortgage loan is for $61k, while the latest appraisal at $80k (tax assessor). I understand there may be a difference on the appraisal, but we never said we were underwater, having a hard time making the payment, or in any way ever mention or hear anything about HARP prior to this denial letter. What gives? Guess we will try a different lender. by jester_841_744 from Woodbridge, Virginia. Mar 12th 2012 Reply


Jon Higginbotham (jon.higginbotham)
#12 ranked lender in Virginia - 14 contributions

You may not NEED to do a HARP refi but it certainly might be priced better if the current loan you have qualifies. The thing to do is not to automatically put it in a HARP loan but prive it out and compare. The biggest issue may be your credit scores. With my clients, I typically try to enhance the scores during or before you do the new loan. There are add-on's to pricing every for every 20 points from 740 down. By raising scores we can get you better overall terms and a higher likelihood of an approval. Call me if I can help or email at jhigginbotham@summit-mortgage.com.Good luck and God bless.Sincerely,Jon Higginbotham(540)649-4001 Mobile(540)946-3711 Office

Mar 12th 2012
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Terri Hardin (USMCLoans4U)
#38 ranked lender in Virginia - 10 contributions

Call Melissa over at Bayfield and she can help you out with this. Bayfield has some great programs for investment properties and to give you a definitive answer we really need to ask questions and see the whole picture since not every loan isn't cut and dry. Wishing you luck with this!! Terri

Mar 12th 2012
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Melvin List (melvinlist)
#144 ranked lender in Florida - 124 contributions

If the loan is HARP eligible I would still try that before trying a straight conventional loan with those credit scores. You should be able to find a mortgage broker in your area that can run a quote for you. If she is the only one on the current loan and the loan is eligible for HARP you can't be added. I only lend in the state of Florida!

Mar 12th 2012
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Brian Neuwirth (Bneuwirth)
#49 ranked lender in Colorado - 28 contributions

HARP stands for "Home Affordable Refinance Program". These loans are traditionally for borrowers who are in a negative equity position, however there are some benefits for borrwers with lower FICO scores. My recommendation is to shop around and compare pricing and programs that will best benefit you. Even with the lower fico score you should still be able to take care of the low rates and reduce your monthly payment. Do not get discouraged and if you have any questions please feel free to email me and I will help answer any questions you may have.

Mar 12th 2012
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He stated that he was DENIED the harp program, so its off the table..

Mar 12th 2012
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

HARP is the Home Affordability Refinance Program, and it's a Fannie / Freddie / Government program for underwater borrowers which give them the ability to take advantage of today's current low interest rates, without the worry of Loan to Value restrictions. There is information missing within your scenario. What type of loan is there currently?? Fannie / Freddie owned loans qualify for HARP, VA / FHA / USDA have streamline refinance options available... if your loan is none of the above, then it's probably a portfolio loan. If you're underwater, then there is probably nothing that can be done for you right now. You might have heard President Obama talking about a refinance program for "All Other" borrowers, meaning all those who don't qualify under all the current refinance programs. It's in the works, so stay tuned.. There might be help on the horizon... WilliamAcres.com

Mar 12th 2012
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,823 contributions

Sorry, but her first mistake was using WF. Your second mistake was going back to WF. You said they turned you down for HARP, do you know for a fact that the property is HARP eligible? Check out the eligibility at Fannie Mae at http://www.fanniemae.com/loanlookup/ or for Freddie Mac at https://ww3.freddiemac.com/corporate/. If you do not find the property in either of these lists, then the home likely does not qualify. Also, HARP will not work if you have equity. You also stated that the value you are using is the tax assessor's value. In theory, the tax assessed value is supposed to mirror real market value, but that is rarely the case. If you find the home on either of the above lists, have the home value checked out using a more traditional method. You may find that there is enough equity to do this as a traditional investment property loan. Finally, make contact with a local Mortgage Banker/Broker who can assist you in getting this done. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

Mar 13th 2012
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You do not need to do HARP at all. Go streamline, its easy quick, and for people with equity. My name is Melissa Evans, I work for Bayfield Home Loans in Stafford VA and I would love to help you out- give me a call at 540-907-9900 or email me @ melissa@bayfieldhomeloans.com :)

Mar 12th 2012
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