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Christopher Jones


VP of Mortgage Lending, Illinois Mortgage Origination, Iowa Mortgage Loan Originator License, Indiana Mortgage Originator, North Carolina Mortgage Loan Originator, New Hampshire Mortgage Loan Originator License, Pennsylvania Mortgage Originator, South Carolina Mortgage Originator, Virginia Mortgage Loan Originator, Washington Mortgage Originator, Wisconsin Mortgage Originator (15 years experience)

Purchase Loan,
Mortgage Planning


  • (294 Contributions,
  • 7 Best Answers,
  • 47 Helpful)

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How are HARP 2.0 LTV's calculated?


The LTV is based on your first mortgage balance divided by the estimated value.  The Combined Loan To Value (CLTV) will include both your first and second mortgage divided by the estimated value.  I am not sure what calculator you are referring to, so it is hard to say exactly what they are asking you to input.  But, both the LTV and CLTV are a consideration on HARP loans, particularly on interest rate.  However, even with a high CLTV and a lower LTV, if HARP eligible the loan should be eligible.  You may just pay a slightly higher rate for a high CLTV and you will need cooperation from the second mortgage lender when you ask them to resubordinate their loan to the new first (HARP) loan.  Most second mortgage lenders will resubordinate because of a couple of reasons, from my experience.  First, if they want to participate in HARP on any of their first mortgage clients, they need to cooperate on their subordination requests.  Second, the borrower's financial situation is improving (lower payments) and will make it more likely the second mortgage will stay current with lower payments on the first.  Hope this helps. 

FHA Approve/Eligible Counter offer from UW


The DE/fha underwriter can sometimes counter your initial loan request. My guess is the biggest issue were the 2 thirty day lates on the car after the bankruptcy. Underwriters are looking for a flawless payment history on all credit items after a bk. as far as i can tell from what you are saying, i'm not sure why your rate would go up but It does make sense why the underwriter wanted a larger downpayment (due to lates after bk).

Will this be a problem on approval?

Best Answer

The issue for underwriting will be your liquid reserves/assets. I highly doubt this issue will raise any question in an underwriters eyes. If you have sufficient assets to meet the terms of the loan approval, how you spend your money shouldn't matter. If you are jailed, that could be a whole different story in that then the underwriter will be concerned about your income continuing and job future. Hope this helps

Applying for an FHA loan


Keep in mind that it is 3 years from the completion date for a foreclosure and FHA.  I personally don't think it will impact your credit to see what you need to do to prepare yourself next year.

Asking this question again with more details...


Since this is your primary residence, I would suggest contacting a lender that specializes in Renovation Financing.  I believe you may be eligible for the FHA 203k product (Consultant K) since the work is structural in nature.  There is also the Fannie Mae Homestlye product.  These loans are more complex but I think it could be an option for you.

Need advice on this situation PLEASE.


If the mortgage was included in the bk, you should be eligible for fha financing 2 years after the discharge date.The foreclosure should have been halted although the bank still proceeds anyhow.  If your bk papers include the mortgage, you should be fine now regardless of when the bank took possession and sold the property.