Should You Take Advantage of the New HARP?
Starting today, Guaranteed Rate will be imposing the following guidelines for the Fannie Mae DU Refi Plus program. Effective for applications taken on or after December 1st, 2011, this program will allow “underwater” borrowers to reduce the balance of what they currently owe on their house by taking advantage of today’s record low mortgage rates.
Maximum LTV ratio limits:
• Max 125% for Fixed-Rate mortgages with terms up to 30 years with DU approval
• Max 105% for ARMs with periods greater than or equal to 5 Years with DU approval
Borrower Benefit Requirements (must meet one of the four)
• Reduction in the borrower’s monthly principal and interest payment
• Reduction in the interest rate
• Reduction in the amortization term
• Movement to a more stable product
• Primary Residence
• 720 FICO
• 28/36 DTI Ratio
• W-2 Employee (Self-Employed case-by-case)
• 6 Months Reserves
The loan must have originated on or before May 31, 2009.
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