FLORIDA HARP 2.0
UPSIDE DOWN REFINANCE
It’s no big shocker that many homes in Florida have drastically declined in value over the past few years – some areas more than others, of course. The reduced home values create a scenario in which hardworking, loyal homeowners are stuck in properties that are worth less than what they owe the bank (also referred to as being “upside down” or “underwater”). Up until now, there was no real, viable solution to the epidemic sweeping across the State of Florida.
In the previous HARP program, borrowers were limited to maximum LTV’s (loan-to-value ratios AKA how much you owe vs. how much your home is worth) of 125% or sometimes as low as 105%…not much help.
But, with this new Florida HARP 2.0 mortgage, homeowners can get the help they really need. Even if you owe twice as much as what your home is worth, the new HARP 2.0 can help! And with home loan interest rates at or near all-time lows, your time to lock in mortgage savings is right now!
What’s new with the HARP 2 Program?
Changes to the previous HARP 2 refinance guidelines:
- Your current mortgage must be owned by Freddie Mac or Fannie Mae
- The loan-to-value cap is now lifted for mortgages with terms up to 40 years for all banks; it doesn’t matter how much you owe you, YOU can qualify for the Florida HARP 2.0 refinance program.
- Certain fees will be waived for homeowners who refinance into a shorter-term loan.
- A property appraisal may not be necessary as long as there is enough information to estimate your home value.
- Any mortgage company can now process your HARP 2 (Home Affordable) refinance. You are NOT required to use your current Florida mortgage company.