Prefer to talk in person? Find a mortgage specialist on Zillow
Profile picture for pj1221

Can i do a HARP loan on this scenario?

Original purchase owner occupied in 2007 on 80-20 loan taken out at same time. The 1st is an interest only loan. Current status is rental home. With both loans combined, I am still underwater. Can I combine both 1st and 2nd mortgages into one loan under HARP?
  • December 06 2013 - US
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (3)

pj1221,

HARP is a little tricky.  Knowing if you qualify for HARP is a two step process.  The first step is to validate if Fannie Mae or Freddie Mac own your existing home loan.  Remember, HARP will only refinance the primary or first mortgage and does not offer to combine other debts (including 2nd mortgages).  HARP is designed for underwriting homeowners who have made their payments on time and can benefit from lowering the rate to lower the payment.

The second step is to validate that the loan was originated under Fannie Mae or Freddie Mac guidelines.  The only way to do this is to obtain a Automated Underwriting approval and check that property is actually eligible for HARP.

You also have some options that if you do qualify under HARP for the first, you will have to make a subordination request to the 2nd mortgage holder.  

If you need further help, please feel free to contact me.

Peter Campellone



  • December 07 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

HARP is for rate and term refies only.   Consolidating your 1st and 2nd loans would be considered a cash out refi, so it would not work. You would only be able to refi the 1st mortgage and would have to subordinate the 2nd.   Also you won't be able to obtain another interest only loan under HARP.


To find out if you are eligible, you can enter your info on either the Fannie Mae or Freddie Mac websites. Just google them.

"Does Fannie Mae own my mortgage?"   or   "Does Freddie Mac own my mortgage?"   Zillow won't allow me to post the websites myself for some reason

Also the current loan has to have been recorded prior to June 2009 ‎to be eligible.

Good luck!‎
  • December 06 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Can I combine both 1st and 2nd mortgages into one loan under HARP?
===================
No. HARP is for eligible 1st mortgages only.
  • December 06 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.