In our last post about HARP, I wrote about what it is, it’s benefits, and some of the qualifications. If you missed it, click here to see HARP 2.0.
In this post, I’ll discuss the four other questions you must answer YES to before you are eligible to refinance in Indiana under the HARP program. The first was that your mortgage has to be backed by either Fannie Mae or Freddy Mac.
Question #2: Have you had your home loan long enough? 
Since the mortgage has to have been securitized prior to June 1, 2009, you must have closed on your loan by mid-May if not earlier. Since the bundling and selling of the mortgage packages can take up to 60 days at times, you could have closed in May and still be ineligible.
Question #3: Does your loan have Lender Paid Mortgage Insurance (LPMI)?
LPMI, as opposed to PMI which has a separate charge on your mortgage statement, is characterized by a small increase in the interest rate that generated a cash credit that was used to pay for single premium (paid all at once) MI. Since loans with single-premium MI are excluded, you may be out of luck.
Question #4: Are you current on your loan payment?
HARP 2.0 mandates that you have made the past 6 months payments on time and have no more that 1 30-day late in the past 12 months. Since this information is verified against your credit report (and up to 79% of them have errors), it is best to check your credit early.
Question #5: Do you know where all your supporting paperwork is?
Since the HARP loans will be underwritten just like a standard refinance, you will need to present your driver’s license, bank statements, W2s, pay stubs, and possibly more. If you are self-employed, you may be required to present business and personal tax returns.
I said it before, but it is worth repeating. If this program takes off like we expect it will, the lenders are going to be swamped. It would greatly benefit you to have all your paperwork in order and have the loan originator submit a clean and well documented file to underwriting. Files that are difficult or have issues may be pushed away to make room for the best submissions and this could affect your ability to qualify and possibly the interest rate you receive.
My team and I are standing by and are ready to answer any questions you may have. To apply, click here for a loan application. If you have questions or concerns, you may call 219-695-0369 or email me at scott.swinford@benchmark.us.
