Tag Archives: Freddie Mac
Check Your Potential Eligibility for HARP 2.0 Refinance

Many folks call to ask what is a HARP 2

0 all about

The Answer:
The Home Affordable Refinance Program (HARP) is a program designed to assist homeowners in refinancing their mortgages – even if they owe more than the home’s current value

Our term for this is called “underwater

”   Continue reading

Update! Are mortgage interest rates starting to rise?

arrowIn comparison, last week’s average rate was 3


  When you compare rates from 30 years ago, rates still remain lower and very attractive for a purchase or a refinance

The average rate on a 15-year, fixed-rate loan was 2




pmms chartWhen creating any debt it requires you must have a net tangible benefit to you the borrower

 If purchasing a home you must feel comfortable that you will still have a life after paying the mortgage

 If you refinance, then you must see a benefit that saves you both monthly payments, increases your cash flow and provides for a reduction in long term interest payments


Housing starts and new construction are up over last year

Existing home inventory for most of Delaware seems to have dwindled from 2012,  which means a return to demand

Some areas in Delaware has seen purchasing has moved from a buyers market to a sellers market

This equates to less negotiation room for buyers

Bottom line, if you are considering buying or purchasing a home,  the timing for you is still good

If you are thinking about refinancing and it makes sense by providing you a tangible benefit, then no time is better than now

(rate source 

” href=”/Contact-Us-/” target=”_self”>Contact us

Let us know, where do you see interest rates going in the near future?

Leave your comments below




Delaware Home Owners Using HARP 2.0 for Refinances

harp 2.0, delaware, FHFADid you know that In July 2012, that over 28% of all closed mortgage refinances in Delaware were done through the HARP 2.0 program.  The HARP 2.0 program has gotten a lot of press alerting more and more Delaware homeowners that they can may qualify for the HARP 2.0 refinance, if their mortgage is a  Fannie Mae or Freddie Mac insured mortgage.

Below are the links to Fannie Mae and Freddi Mac for you to check to see if you’re loan is secured by either:

To check if your mortgage is backed by Fannie Mae,
visit http://www.fanniemae.com/loanlookup/.

If your mortgage is not found to be a Fannie Mae, try Freddie Mac’s loan lookup at

The number of refinances in Delaware in July exceeded 1000 according to the Federal Housing Finance Agency, and of those almost 1/3 were HARP 2.0 loans. Delaware homeowners are fortunate that we have not seen the dramatic downturn in home values, as has been experienced in other parts of the country.  There were quite a few HARP 2.0 loans were given to people with a loan-to-value ratio below 105%, but the majority were given to folks who were significantly underwater in their homes,  Underwater means they had mortgages larger than the value of their house. 

Will the HARP 2.0 program  be around forever?  No! if you have a Fannie Mae or Freddie Mac insured mortgage (sold to Fannie or Freddie prior to June 1, 2009) and is current for at least the last 6 months, you may qualify for the program.

The HARP 2.0 program is constantly changing, as lender continue to tweak their programs based on new incentives and mandate by the government.  This means that you might qualify now compared to a year ago.  So, it doesn’t hurt to check again.  You really have nothing to lose and everything to gain.  

Delawareans, the news could not be better. 



HARP 2.0 – Taking the right first steps!

HARP, HARP 2.0, underwater homeowner

Taking the right steps to prepare and have ready all the required information for the HARP 2.0 program can help in getting you approved more quickly. 


The defining characteristic of the newly expanded HARP program is the allowance of an expanded loan-to-value (LTV) ratio. The old HARP program had more stringent loan-to-value (LTV) ratios, thereby eliminating many borrowers who could not qualify.

HARP 2.0 gives homeowners the ability to refinance into today’s low mortgage rates and includes the ability for closing costs and in some cases even not requiring an appraisal.

Beyond that, a HARP loan looks a lot like any other mortgage. Lenders are looking for borrowers with solid incomes, good assets and quality credit scores.

5 Steps for your HARP preparation

Since HARP mortgages are backed by Fannie Mae and Freddie Mac, the underwriting process will resemble that of any other conventional mortgage. There will be loan disclosures to sign and supporting financial documentation to remit.

To ensure your HARP application lands on the top of the stack, you’ll need to follow these 5 preparatory steps:

1. Ensure Fannie or Freddie backs your mortgage

Since day one, only those with mortgages owned or guaranteed by Fannie or Freddie could qualify. Fannie and Freddie each have a loan lookup tool which allows homeowners to search for their loan.

To check if your mortgage is backed by Fannie Mae,
visit http://www.fanniemae.com/loanlookup/.

If your mortgage is not found, try Freddie Mac’s loan lookup at

Mortgages not listed on either website are not backed by Fannie or Freddie and, therefore, are not HARP-eligible.

2. Determine if your mortgage is old enough

Only those whose mortgages were securitized prior to June 1, 2009 can apply for HARP. In general, this means that your mortgage must have started in mid-May 2009 or earlier. You can find your mortgage start date by looking at your closing paperwork. In the upper-right-hand corner of your settlement is your “funding date”–that’s the date you’re looking for.

Note: Since it can take up to 60 days to securitize a Fannie or Freddie loan, even if your start date is close to June 1, 2009, you still may be ineligible.

3. Does your current mortgage have LPMI?

HARP 2.0 is designed to help homeowners with or without private mortgage insurance (PMI), but the government’s revisions specifically excludes homeowners that chose lender-paid mortgage insurance (LPMI), in other words your MI is mortgage insurance that is built into your rate..  

If your mortgage statement itemized your monthly PMI, you have borrower-paid mortgage insurance and are thus eligible. All other mortgage insurance types are ineligible–including single-premium insurance. These guidelines can be investor specific and subject to change.

4. You must be current

HARP 2.0 requires that all homeowners have made their last six mortgage payments on time, with a maximum of one 30-day late payment in the past year. This information is verified against your credit report, so be sure to review your credit reports prior to submitting your application.

5. Find and organize your supporting paperwork

Since HARP mortgages are underwritten like every other type of mortgage, you will be required to provide bank statements, a drivers license, homeowners insurance information, pay stubs and W-2s. If you’re self-employed, you’ll have to provide a few years of tax returns to verify your income.

Your speed in which you return these items to your lender can dictate your mortgage rate. If you plan on applying for HARP 2.0, gather all these items in advance. The less you leave to the last minute, the smoother your application will go.

If you’re going to apply for the new HARP 2.0 follow these tips to be one of the first approved and one of the fastest to close. 

Our mortgage team here at Delaware Financial Capital Corp is here to assist you through this process.  Please give us a call at (302) 266-9500 or simply fill out the on line form below to speak to one of our HARP 2.0 Specialists.




The Basics on Home Affordable Refinance Mortgages (HARP 2.0)


home affordable refinance programWith changes in the economy and frequently fluctuating mortgage rates, many homeowners decide to refinance their mortgages to get better rates and save money as they pay off their homes. Unfortunately, the housing market is not what it once was, and the declining value of a home may prevent a homeowner from being able to refinance a mortgage. If the value of a home has declined, homeowners may not be able to secure traditional refinancing. In this situation, a Home Affordable Refinance Mortgage may be an option for those wishing to secure refinancing.

The Home Affordable Refinance Program, commonly called “HARP,” was created in March 2009 by the Federal Housing Finance Agency for homeowners who are able to keep up mortgage payments, but unable to refinance due to declining home values.

Recently, changes and improvements have occurred to allow more homeowners to take advantage of the program and save money on their mortgages. “HARP 2.0″ allows homeowners with private mortgage insurance with a lender other than their own since many lenders will not refinance mortgages with private mortgage insurance attached. In addition, those applying to the Home Affordable Refinance Program may forego a home appraisal if a reliable automated valuation model is locally available. However, this is left to the discretion of the mortgage company.

There are specific requirements to be eligible for a Home Affordable Refinance mortgage. First, the mortgage must be held by either Fannie Mae or Freddie Mac, and must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009. The given homeowner may not have refinanced with HARP previously. However, this does not apply to Fannie Mae loans refinanced under HARP between March and May in 2009. The loan-to-value ratio also must be more than 80%. Finally, the mortgage payments must be current at the time of refinancing, with a good payment history for at least a year prior to refinancing. This program is not in place for homeowners at risk of foreclosure.

Not all mortgage services offer refinancing under this program. After determining eligibility, homeowners have to find a mortgage service that can refinance under HARP 2.0 and has been approved by Fannie Mae or Freddie Mac. As with any refinancing, compare the options offered to ensure your refinance has the best terms possible for you. Do not assume that the first offer is the right one. The Home Affordable Refinance Program is scheduled to end on December 31, 2013.

Refinancing a mortgage is common among homeowners in order to secure better interest rates and save money. If homeowners have been keeping up with their mortgage but the value of their home has decreased, HARP 2.0 can function as an alternative to traditional refinancing options.

Here at Delaware Financial Captial Corp. we can answer your questions.  We are here to help you.  Please call us at (302)266-9500 or simply click on the button below:



How do you qualify for the HARP 2.0 Refinance Program?


com/loanlookup/” target=”_blank”>Fannie Mae or


com/loanlookup/” target=”_blank”>Fannie Mae or call 1-800-7FANNIE

Remember, this program is for primary residences only and does not include second homes or investment properties

The expanded HARP program – also referred to as HARP 2

0 – will take effect on December 1, 2011 for borrowers with a loan-to-value ratio of less than 125 percent and in the first quarter of 2012 for borrowers with a loan-to-value ratio of greater than 125 percent

Lenders are working hard to get this new HARP 2

0 into effect, but each lender may treat the program differently and for this reason, we will be checking each of our investors for the best program for our clients

The old HARP was a miserable failure because of limitations to the program

  Different parts of the country have been hit differently when it comes to declines in home values

   The new HARP 2

0 is being introduced to hopefully eliminate this disparity and make many more people eligible for refinance

Our team here at Delaware Financial Capital certainly welcome you to call us at at (302) 266-9500 any time with any questions or simply click the button below to contact one of our mortgage consultants!



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HARP 2.0- Refinancing Boom Continue Record Pace

untitledFixed mortgage rates have hit new lows for three straight weeks, fueling a sustainable refinancing wave.

The Home Affordable Refinance Program, now dubbed HARP 2.0, has drawn half a million applications as of the last report by U.S. housing officials, who could see up to 2 million refinance applications through the revamped program that launched unofficially in March.

The Mortgage Bankers Association said that HARP 2.0 accounted for 28 percent of refinance applications last week.

The biggest jumps in refinance applications have take place in states with the highest rates of underwater homeowners, those who owe more on their mortgages than the worth of their homes. Refinance applications in Nevada, where 61 percent of borrowers are underwater, have jumped 267 percent since the new HARP guidelines were announced late last year.

Under the original HARP 1.0, lenders refinanced more than 1.1 million mortgages owned or guaranteed by Freddie Mac or Fannie  Mae since the program’s launch in 2009. But only slightly more than 110,000 affected underwater borrowers with loan-to-value (LTV) ratios above 105 percent.

The focus of the expanded HARP 2.0 is homeowners current on their payments, but who owe much more on their mortgages than their homes are worth. The new HARP eliminates the LTV ceiling, reduces certain risk-based guarantee fees, and extends the program’s end date to December 2013.

We’ve found that the scope of the HARP 2.0 program will vary by investor.  We can sift through these hurdles for you to try to find the right underwriting guidelines to get your mortgage approved. We’re helping Delawareans refinance and save everyday!

Nonetheless, the refinance share of mortgage activity last week increased to 74.9 percent of total applications from 72.1 percent the previous week, reported the Mortgage Bankers Association.