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This topic contains 11 replies, has 2 voices, and was last updated by  Rory 5 years, 2 months ago.

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    Mortgages with mortgage insurance do qualify for HARP. Get the skinny here to see if your mortgage qualifies.

    [See the full post at: Mortgage Insurance]






    My mortgage servicing company is telling me that a current mortgage that has PMI requires the LTV ratio to be less than 95% to qualify for refi under Harp Phase II.
    Example: I owe 94K and Zillow states that the property is worth 50K. I am at 190% LTV which meets the criteria to be over 80% LTV as stated in by the HARP Phase II guidelines. However, since I have PMI on my current loan there appears to be non-published requirement stating that they will only allow you to refi if you are no higher than 95% LTV. Isn’t this worse than the HARP Phase 1 at LTV of 125%.
    This rule makes no sense. If I had a mortgage that did not have PMI I would not be upside down and could do a traditional refi.

    I have never missed or been late with a single payment, I owe almost double what the property is worth, I have excellent credit and a good job but an interest rate at 7.5%. I am a person who wants to do the right thing but this is ridiculous. I now see why my friends are just walking away. Any suggestions?



    You can refi but you have to bring the 50k to the table to get the LTV to 95%. What a great plan huh? I am in the same situation, it is completly ridiculous.



    I am going through the same ridiculous situation. I have lender paid PMI and am unable to refinance because of my LTV. I am a have kept up with my payments, but want to get a lower interest rate. This is soo frustrating because I feel I can’t do ANYTHING!



    Same situation here. That is the most ridiculus idea. I am left with no option but walking away because I do not have 40 to 70 thousand dollars.



    Hi we have been approved thru my credit union for refi at 4.125..i told them i wanted to go thru the Harp ..they gave us the okay..now they are telling us we have to have a impound account..we have always paid our taxes without impound account ..see their note: We received the updated payoff demand and the amount to payoff is $341,052, plus $2,237 in closing costs and we are also requiring to set up an impound account to pay for your property taxes and homeowner’s insurance policy due to the loan-to-value being over 80%. We will need to collect 3 months upfront for taxes and 10 months for the insurance which total up to $1,433.



    Not likely. You would think it makes sense beuacse you are more likely to meet a lower payment. However, the way mortgages are financed makes this a terrible deal for the bank. They cannot sell your new loan when the borrower has poor credit.



    I have Fannie Mae loan. It looks like my loan was not insured even if I didn’t put 20% down payment. I asked my lender to give me a document stating my loan does not have a PMI or LPMI. They send me a letter saying “the lender does not maintain mortgage insurance on the loan”. The loan is possibly a self-insured loan. They simply increased my interest rate by 0.59% on top of the base interest rate. But, the lender didn’t notify Fannie Mae that the loan was not insured. So, now, the DU finding says I am eligible and the loan needs mortgage insurance. I couldn’t move forward with the refi because there is no mortgage insurance certificate to transfer to the new loan.Any advice is greatly appreciated.



    I have a fannie mae and PMI. go try a morgage broker. they’ll make it happen. worst case senario. they charge you 1 point.



    I just tried to refinance with Harp 2.0, first off I was bombarded by lenders on my phone and via email after I filled out the info on the govt web site. After weeding through all the callers I decided to go with Capitol FInancial here in the chicago area. After giving all of my information and going as far as pulling my credit report , which I told the loan guy I was not interested if this was not a serious offer, I was told I had a loan for 3.25% no problem. Then the bad news 2 days later, The loan guy I was talking to emailed me that for some unknown reason his lenders won’t work with United Guaranty which holds the PMI for my current loan. This is one of the biggest PMI insurers in the country. So I could not get a loan . REALLY??? Then I finally heard back from my mortgage company, PNC, and the very polite guy on the phone told me I don’t meet criteria because my loan was not bought by Fannie mae until July 2009, one month after the current guidelines require. When I told the Capitol financial guy this he had the gall to tell me that he could still get me a HARP loan if wasn’t for the pesky united Guaranty company. So just a cautionary note, when you try to refi, don’t believe everything you are told. For now I am waiting for the guidelines to change and maybe I can refi in the future. In the meantime I am paying extra principle per month to try to pay down my mortgage and get rid of the PMI altogether. I make a good living and have paid my mortgage faithfully every month but this is ridiculous, I will just pay off my loan as soon as possible and make sure that the mortgage company gets the least amount of interest from me as I possibly can



    the program requirements for harp state that you are only required to escrow for taxes and HOI if your previous loan had an escrow account. If your previous loan did not escrow taxes or HOI then you do not have to set up an account, but if either taxes or HOI or both were escrowed on your original loan you must escrow both.

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