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if my payment to income ratio is worse than when I originally took out the existing loan, does HARP do me any good?

by calforniaexpat322 from Aptos, California. Jan 4th 2016 Reply


William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,933 contributions

More info needed.. but all lending programs require that your DTI fall within industry standards.. but 95% of consumers don't know how to calculate their DTI correctly (and 25% of loan officers as well), so I would leave the calculations up to the experts.. But in general, HARP allows you to refinance even if you don't have sufficient equity.. Most HARP transactions do not require an appraisal.. so the "Loan to Value" is not really a consideration.. but your "Payment to income" or your "Debt to Income" is considered.. and must be within the allowable percentages.. Also, your total "Debt to income" (DTI) ratio is most important.. your, housing payment to income ratio can easily be waived.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Jan 4th 2016
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,524 contributions

HARP (home affordable refinance program) is a program that essentially takes the appraised value out of the picture, but the rest of the loan is pretty standard. SO a lender IS going to look at everything else, including debt-to-income ratios. I suggest simply applying with a mortgage broker in your area. Let them review your application, and see if you fit guidelines. For HARP loans in MN, WI, and SD, visit me at www.JoeMetzler.com

Jan 4th 2016
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Barb Lanis (BarbLanis)
#71 ranked lender in Illinois - 662 contributions

Typically, the max DTI for a HARP refinance is 50%. There are subtle differences between Fannie and Freddie, so you need to determine which one currently backs your loan. Each one also has slightly better options if you go back to your existing lender (called "Same Servicer"). Use these links to at least find out who backs your current loan:Fannie: https://www.knowyouroptions.com/loanlookup Freddie: https://ww3.freddiemac.com/loanlookup/

Jan 4th 2016
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Larry Gray (lgray_312_247)
#566 ranked lender in California - 1,127 contributions

You could be pleasantly surprised at how high of a debt to income ratio we can go to with our "automated underwriter" for a HARP loan (often beyond 50% DTI.) I would run it with all the required information from you and if we get an approve/eligible at whatever debt to income ratio you have that SHOULD be sufficient along with any pertinent documentation in obtaining a harp loan.

Jan 7th 2016
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