10 Things You Cannot Do With the HARP Program

10 Things You Cannot Do With the HARP Program
By Craig A Reynolds

Just as it is important that you know what you can do with the Home Affordable Refinance Program (HARP), and the many ways that it can benefit you, it is also important that you know what restrictions apply. This is important not only because your eligibility may be affected, but because it may turn out that this type of refinance loan is not right for you.

With that in mind, the following are 10 things you cannot do with the HARP program:

1. You cannot be behind in your mortgage payments. Your mortgage payments must be current and your payment history must be in good standing for a minimum of 12 months in order to be eligible for a HARP loan.
2. You cannot avoid foreclosure with HARP. This program has been designed to provide homeowners who have lost equity on their homes and who are current on mortgages the opportunity to refinance and take advantage of low interest rates. It will not stop or delay foreclosures.
3. You cannot do a cash-out refinance with HARP. This loan program only allows for rate-and-term refinance.
4. You cannot consolidate mortgages. HARP is only for first liens.
5. You cannot refinance under the HARP 2.0 program with a direct lender who is not approved by Freddie Mac or Fannie Mae. However, you can engage in HARP refinance with any Freddie or Fannie direct lender. This includes lenders outside of your current mortgage servicer.
6. You cannot use the HARP program if you have already used it before. Only one HARP refinance program is permitted per mortgage.
7. You cannot obtain a mortgage that is greater than the conforming loan limit of $417,000 with a HARP refinance.
8. While you can increase your mortgage balance with HARP to cover closing costs and other fees that are due at closing, your loan size cannot be greater than the local conforming loan limits.
9. You cannot obtain HARP refinance though the FHA (Federal Housing Administration). Although HARP is similar, it is not the same as a FHA Streamline Refinance. The HARP program is only administered via Freddie Mac and Fannie Mae.
10. You cannot assume expertise with the HARP program. It is crucial that you consult with a direct lender or loan officer who has experience with HARP refinancing and who understands the complex qualification process. This individual should know everything there is to know about the program, so they can accurately determine your eligibility.

Knowing what you can and cannot do with HARP will help you discover if it is possible or right for you to refinance with this program.

A seasoned entrepreneur and mortgage industry veteran with over 15 years experience in managing and loan consulting. Prided in establishing successful Mortgage Consulting teams that create and foster long-term relationships with clients. Contact Allied Mortgage Direct.

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