Profile picture for tynestar

Help with Harp Refi

I meet all the criteria of the HARP program except the LTV of 125.  I bought house for 170, owe 160 and am told estimated value is 125.  My original loan was an 80/20 so I don't pay PMI but have interest rates of 6.875 on the 1st and 9.375 on the second Can't seem to get anyone to make this work.  No missed payments and credit scorest in the 780+.  What am I saying or doing wrong?  Or is my ability to easily pay current rates preventing me from doing anything?
Thanks you
  • October 25 2011 - Dayton
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Answers (8)

Profile picture for Keane Ng
Your loan should be eligible now.  HARP doesn't have a Combined-Loan-to-Value limit, meaning your second mortgage is not calculated.

You do have to make sure the 2nd mortgage holder will "Subordinate" and allow you to refinance.

Most lenders will lend 105% of the first value and no limit on the 2nd.

The announcement yestserday is lifting the 125% limit but more importantly, is removing the lender warranties and representations so more lenders will participate in HARP.  Here are more details on how the new changes will impact HARP eligibility.

[moderator edited for website link, please refer to good neighbor policy]
  • October 25 2011
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Yes...Only the first value is the LTV.  It looks like you should be fine.  Best of luck.  If you need further assistance, please let us know. 
  • October 25 2011
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HARP has always allowed unlimted CLTV.   The 125 pertains to LTV (primary only).    For your parameters, you fit comfortably.
  • October 25 2011
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Profile picture for tynestar
Yes I am giving these numbers to them. So you are saying they shouldn't look at the second loan in the LTV number?
  • October 25 2011
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Okay.  Based on the numbers you provided, I am not sure why you are having trouble.  If you are estimating the value of your home at $125,000.00 and you owe $127,000.00 on your first.  Your LTV would be approx. 102% of the appraised value.  Your combined indebtedness is $159,000.00.  That would make your combined loan to value (CLTV) 128%.  Is this what you are telling me?  If so, are you communicating this to the lenders/ brokers you are talking to? 
  • October 25 2011
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Profile picture for tynestar
1st loan - 127,000 owed on 135,900
2nd loan - 32,500 owed on 34,000
  • October 25 2011
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What are the individual amounts your owe on your first and second mortgage?  Some lenders participating in HARP have limitations on the loan amount to property value (LTV).  If you can provide that information, I might be able to steer you in the right direction.  
  • October 25 2011
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Profile picture for wetdawgs
Study up on the Obama announcements of yesterday to see if those offer you hope.

Here's a link to the Zillow blog on the subject.
  • October 25 2011
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