Home Affordable Refinanace Program for Investors!

On September 19, 2011 by Karen

 

Home Affordable Refinance Program for Investors

Here is a letter we recently received from a local investor. Thanks for the heads-up, Fred!

“I can personally attest to the fact that the Home Affordable Refinance Program does apply to investors. I was in such disbelief that government funds would be available to investors that I argued with a Bank of America contact (i.e. who took my initial phone inquiry) about why BOA would not lend to someone with no w-2 income and no job. Fortunately, the rep hung in there with me and got me in touch with someone who told me that all I needed was:

  1. A tax ID number for the business
  2. Articles of Incorporation
  3. Money for a $395 application fee

There was no credit check, no tax returns to submit, no bank statements, no appraisals, etc. etc.

Six weeks later I refinanced an interest only loan to a fixed 30 year rate. By the way, all of this started by responding to a “junk” mailer BOA had been sending to me for the prior 6 months. On another by the way note . .this was on a property that I purchased before finding the mastermind group and did so with a mortgage in my own name.

Anyway, I have a second property just like the one I just described. So, I contacted Chase Home Mortgage who has money for the same program and we are off and running with the same refinance for that property.”

Are you an investor? Do you need a bank loan? Try the Home Affordable Refinance Program and let us know the results you get.

2 Responses to “Home Affordable Refinanace Program for Investors!”

  • So I went to the Home Affordable Refinance Program (HARP) website and this is what I found:

    “If you’re not behind on your mortgage payments but have been unable to get traditional refinancing because the value of your home has declined, you may be eligible to refinance through MHA’s Home Affordable Refinance Program (HARP). HARP is designed to help you get a new, more affordable, more stable mortgage. HARP refinance loans require a loan application and underwriting process, and refinance fees will apply.

    You may be eligible for HARP if you meet all of the following criteria:

    •The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
    •The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
    •The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
    •The current loan-to-value (LTV) ratio must be greater than 80%.
    •The borrower must be current on the mortgage at the time of the refinance, with a good payment history in the past 12 months. ”

    Wouldn’t this mean that HARP money is unavailable for new purchases, whether they be investment properties or not? And if a loan “application and underwritieng process apply” then this doesn’t sound like the no doc loan that the student was talking about. Is it possible he/she is talking about a different program?

  • Hi Don:

    Great research! First of all, HARP money is for refinances only, hence the name. (Home Affordable Refinance Program)

    I called several banks to check on these for my properties. They did still intend to run a credit check, but I would not have to do the full blown application like a typical loan (bringing in w2’s, tax returns, etc.) since they already know me.

    That said, I don’t believe No Doc loans exist anymore. They were a bad idea to begin with and created problems for the homebuyers, the banks, the entire economy!

    Thank you for writing.

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