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Did HARP 2.0 Refinance Go Too Far By Waiving All Loan to Value Restrictions?


The Home Affordable Refinance Program, which is now called HARP 2.0, has given new hope to homeowners that have been put in the corner from banks because they do not have enough equity in their home. Traditional refinance programs require home equity to be considered as sufficient collateral. The latest loan term for these types of homeowners is “underwater mortgage”, because the balance on the mortgage is greater than the home’s value, thus the term, “underwater.”

Fannie and Freddie Eliminated LTV Caps on the HARP Refinance Program

If you thought the 125% loans were aggressive, wait until you read about the latest HARP refinance guidelines that have absolutely omitted all “loan to value” requirements to refinance. The gives HARP mortgage lenders “Cart Blanche” to offer 200% and even 300% LTV refinancing in severely underwater regions like California, Florida, Nevada, New York, Virginia and Washington.

One of the most important steps for underwater homeowners is educated themselves. In addition to speaking with HARP mortgage lenders and finance professionals, we suggest reading the following articles below:

  • How to Refinance With No Equity
  • HARP Lenders for Refinance

Check out a few of the important HARP 2.0 requirements that we highlighted below:

  • Mortgage lien must have been sold to Freddie Mac or Fannie Mae before June 1, 2009
  • To qualify a borrower cannot be late on their mortgage payment. (Also, cannot have has any late payments reported in the past six months.
  • The borrower is allowed to have one payment reported late in the past year.
  • The borrower must be at a minimum of 80% “loan to value” presently
  • Applicant cannot have completed a mortgage refinance through the 1st Home Affordable Refinance Program or HARP 2.0.

Nationwide wants to stress now more than ever is the time to compare HARP mortgage lenders because rates and costs can vary significantly. Don’t forget to factor in “service” when shop HARP lenders either because underwriting advice and processing efficiencies can also range drastically as well. At this time, the Home Affordable Refinance Program is only valid until December 31, 2013.

If you believe that have a 1st mortgage owned by Fannie Mae, you may qualify for the HARP2.0, so you can get more help online at  If you think your loan is owned or serviced by Freddie Mac, get more info on HARP refinancing program now at

If you still aren’t sure, we recommend discussing your goals with a Nationwide loan officer who will help determine if you meet the parameters for a refinance with the HARP 2.0.

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