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Eligible for HARP 2 but can't get mortgage insurance

I'm finally eligible to refinance with the new HARP 2.0 via DU Refi Plus but now my hurdle is obtaining mortgage insurance because my LTV is at about 105%.  My current mortgage doesn't have any MI because its an LDRPA loan.  I refinanced back in 2005 with an LTV above 80% and was given a credit enhancement in lieu of MI. Are there MI companies that will work with LTVs above 95%?  The last thing I want to do is throw down $10-20k to bring down the LTV when I only plan to stay in my home for 5 more years (I've been saying this since '08). My current rate is 6.1% and dropping down to at least 4% would make a huge difference.
  • May 24 2012 - Silver Spring
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Answers (11)

Profile picture for Second Chance Lender
You don't need mortgage insurance with HARP2.  If your current loan does not have MI then you will not need MI regardless of % upside down.
  • May 25 2012
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Profile picture for LeeMD
According to Fannie I need MI since my LTV is above 80%.
  • May 25 2012
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Profile picture for LeeMD
Brian, my apologies.  I contacted a different bank and they said that if I don't have MI then I don't need it.
  • May 25 2012
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Profile picture for LeeMD
Well, I got declined yet again because my credit union was apparently not able to obtain mortgage insurance on my HARP 2 loan. I was told everything was good for the past 2 months and was supposed to close tomorrow and now wham!, DECLINED.  What the heck is going on?!?  
  • July 22 2012
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If yor credit union was trying to get MI then they don't offer HARP or don't know what they are doing. If yor current loan is eligible for HARP and down not contain either BPMI or LPMI then you only need to find a competent HARP lender.
  • July 22 2012
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Profile picture for LeeMD
According to the lender, I was not eligible for the HARP 2 refi because my LTV is 105% and the max LTV the MI company(s) are willing to consider is 95%.  I don't have MI on my current mortgage because when I refinanced in '05 the bank added a backed interest rate increase or something like that (LDRPA is what I have heard it called) to avoid MI.  So it seem that I'm completely screwed now because of this unless I can pay down the difference which is over $20k.  Makes no sense that the bank is not considering that reducing my rate reduces my payment and thus reduces risk.  I have never been late in paying my mortgage, my credit is hovering close to 800 and my debt-to-income is excellent.
  • July 26 2012
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Profile picture for LeeMD
Can anyone suggest a lender participating in HARP 2 that works in Maryland?
  • August 14 2012
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  • August 15 2012
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Profile picture for Go Huskers
It sounds like you are not eligible for HARP because of the credit enhancement. There is no one that can help you if that is the case. I'm not sure why someone has not explained this to you better thus far. Your issue is not with getting MI, the only reason you would need that is if you DID NOT qualify for HARP and were doing a standard refi. It appears this is what you have been encountering wit the caps at 95% LTV. If you were actually eligible for HARP it would not matter. If the DU refi plus findings come up as ineligible because of the credit enhancement, you are not eligible for HARP and will need to pay down to an LTV where MI is offered or to 80% LTV where it is not needed.
  • August 15 2012
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Profile picture for LeeMD
I'm definitely eligible for DU Refi Plus.  I even have a letter from Fannie stating that.  The issue seems to be that my bank has overlays that require me to get MI even though I don't have MI or LPMI.  I'm actually working with a new lender that someone on Zillow referred me to that doesn't have the overlays that my bank does.  Keeping my fingers crossed.
  • August 15 2012
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  • August 20 2013
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