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The Government’s Revamped HARP Program For Underwater Homeowners

October 25, 2011
By Richard Staley
www.jimandrichardblog.com

The Federal Home Finance Agency announced big changes to its Home Affordable Refinance Program Monday. More commonly called HARP, the Home Affordable Refinance Program is meant to give “underwater homeowners” opportunity to refinance.

With average, 30-year fixed rate mortgages still hovering near 4.000 percent, there are more than a million homeowners in Atlanta and nationwide who stand to benefit from the program overhaul.

To qualify for the re-released HARP program, you must meet 4 basic criteria :

Your existing home loan must be guaranteed by Fannie Mae or Freddie Mac
Your home must be a 1- to 4-unit property
You must have a perfect mortgage payment history going back 6 months
You may not have had more than one 30-day late payment on your mortgage going back 12 months
Most notable about the new HARP refinance program, though, is that the government is waiving loan-to-value requirements on a HARP loans. Homeowners’ participation in the program are no longer restricted by their home’s appraised value. In fact, the new HARP doesn’t even require an appraisal, in most instances.

With the new HARP program, underwater mortgages can be refinanced without LTV limit or penalty.

According to the government’s press release, pricing considerations for the new HARP program will be released on or before November 15, 2011; and lenders are expected to be offering the program as of December 1, 2011.

If you think you may be eligible, first confirm that either Fannie Mae or Freddie Mac is backing your loan. Both groups provide a simple, online lookup.

Fannie Mae loan lookup : http://www.fanniemae.com/loanlookup/
Freddie Mac loan lookup : https://ww3.freddiemac.com/corporate/
If your loan cannot be located on either of these two sites, your current mortgage is not backed by Fannie Mae or Freddie Mac, and is not HARP-eligible.

The FHFA’s official press release contains an FAQ section. In it, you’ll find minimum qualification standards, as well as information related to condominiums and to mortgage insurance.

The HARP program is meant to help a wide group of homeowners, but each applicant’s situation is unique. For specific HARP questions, be sure to talk with a loan officer.

Tags: HARP, Home Affordable Refinance Program, Making Home Affordable

OH BY THE WAY, WE ARE NEVER TOO BUSY FOR YOUR REFERRALS..

Richard J. Staley & Jim Lewis
O: 678-495-2801
C: 770-351-7553
E-Fax: 770-406-2716
NMLS #185131
www.richardstaley.com
www.richardstaley.com/blog

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Keller Williams Realty Atlanta – Peachtree Road

Atlanta Homes For Sale – Atlanta Real Estate News - Atlanta Home Buyers

The Covenant Group Market Update
August 23rd, 2011

What’s Ahead For Mortgage Rates This Week

Mortgage markets improved again last week, pushing mortgage rates to an all-time low; even lower than the lows set last November.
 
Last week’s low mortgage rate drivers are primarily European. Joining the debt concerns that have dogged Europe since March, a fresh wave of doubt has surfaced about the health of some Eurozone banks. The fears sparked a new wave of safe haven buying.
 
Global equities were socked last week and the Dow Jones Industrial Average fell for the 4th straight week. For home buyers , though, the timing may be perfect. As stock markets lose, bond markets gain and when bond markets gain, mortgage rates drop.
 
According to government-group Freddie Mac’s weekly mortgage rate survey, the average 30-year fixed rate mortgage fell to 4.17% last week with 0.7 points. This is the lowest rate-and-points combination in history.
 
The 5-year ARM fell to 3.08 with 0.5 points.
 
As mortgage rates fall, though, be wary of trying to “time the market”. It’s impossible to know when rates have bottomed and mortgage rates tend to spike without notice. That’s what happened in May 2010. And then again in November 2010. And then a third time in April 2011.
 
When rates rise, they could tack on 0.500% or more overnight.
 
This week, there is a lot that can move mortgage rates. With housing data set for Tuesday release, the Eurozone stories still unfolding, and three Treasury auctions planned, it’s best to be ready for locking.
 
If you’re floating a mortgage rate or still shopping, consider locking your rate as soon as possible. Rates trended higher to close out last week and will be riding that momentum forward.
 
Rates are lower than they’ve been in history.Take advantage of it.

CURRENT RATES (PURCHASE TRANSACTIONS)

Conforming Loans: Loan amounts $417,000 & under*
      30-yr Fixed = 4.00 %
      15-yr Fixed = 3.25 %      
Conforming ARMS*
      Conforming 5/1 = 3.125%
      Conforming 7/1 = 3.375% 
Jumbo Loans:Loan amounts over $417,000*
      5/1 ARM = 3.50%
      7/1 ARM = 3.875% 
   10/1  ARM = 4.375%
    30-year Fixed JUMBO = 5.0%
FHA Loans:*
      30-yr Fixed = 4.25% – 4.75%
      5/1 ARM    = 3.50%
          
Call Me Now For More Details!
*Based on pricing as of Monday, August 22nd, 2011 at 12:00PM.
Prices, guidelines, and programs subject to change without notice.  Subject to errors and omissions.
This information is not intended to constitute an advertisement for purposes of the Truth-in-Lending Act or Regulation “Z”.  It is intended solely for use by Real Estate professionals.
Residential Mortgage Licensee: GA Licensee # 22114, Florida Licensee # MLD 131,
North Carolina Licensee # L-122702, Everett Financial DBA Supreme Lending NMLS # 2129  

For More Information Call or Email:

Jim Lewis
Cell 678-231-0602
Fax: 404-921-9667
jim@jimlewishomeloans.com
www.jimlewishomeloans.com
NMLS #303559, GA License# 29318

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Keller Williams Realty Atlanta - Peachtree Road Office

Mortgage Update:  Important Tax Credit Links

First-Time Homebuyer Credit 

Updated Nov. 6, 2009, to reflect new legislation — more to be added soon

New Legislation 

New legislation, the Worker, Homeownership and Business Assistance Act of 2009, which was signed into law on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts. The new law:

• Extends deadlines for purchasing and closing on a home.
• Authorizes the credit for long-time homeowners buying a replacement principal residence.
• Raises the income limitations for homeowners claiming the credit.  

Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.  

For the first time, long-time homeowners who buy a replacement principal residence may also claim a homebuyer credit of up to $6,500 (up to $3,250 for a married individual filing separately). They must have lived  in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.

People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after Nov. 6, 2009. The credit phases out for individual taxpayers with modified adjusted gross income (MAGI) between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers. The existing MAGI phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009.

General Information

Homebuyers who purchased a home in 2008 or 2009 may be able to take advantage of the first-time homebuyer credit. The credit:

• Applies only to homes used as a taxpayer’s principal residence.
• Reduces a taxpayer’s tax bill or increases his or her refund, dollar for dollar.
• Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

The credit is claimed using Form 5405, which you file with your original or amended tax return.

For 2008 Home Purchases

The Housing and Economic Recovery Act of 2008 established a tax credit for first-time homebuyers that can be worth up to $7,500. For homes purchased in 2008, the credit is similar to a no-interest loan and must be repaid in 15 equal, annual installments beginning with the 2010 income tax year.

For 2009 Home Purchases

The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before Dec. 1.

For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer’s main residence within a three-year period following the purchase.

First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010. The credit may not be claimed before the closing date. But, if the closing occurs after April 15, 2009, a taxpayer can still claim it on a 2008 tax return by requesting an extension of time to file or by filing an amended return. News release 2009-27 has more information on these options.

Questions and Answers

More information is available in the question and answer section.

Related Items

• IR-2009-83, First-Time Homebuyer Credit Provides Tax Benefits to 1.4 Million Families to Date
• The American Recovery and Reinvestment Act of 2009: Information Center

Please Contact Us For Assistance:

Kim Nehiley; (C) 404-667-3920;  Kim.Nehiley@BankofAmerica.com   

  
Scott Meldrum; (C) 404-992-8422; Scott.Meldrum@BankofAmerica.com

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