Gil Kerbashian: This blog is focused on housing issues- short sales, foreclosures, banking, renting and mortgage lending issues, opinions and concerns. If you have any questions, please contact Gil at 847-873-7295 NMLS 197757. The Housing Industry is 100% Local and Supports a Healty Economy. Northwest Mortgage Services Crystal Lake IL
ILLINOIS HOUSING, BANKING, SHORT SALES, FORECLOSURES, MORTGAGE MODIFICATIONS, CREDIT REPORTS, ILLINOIS HOME LOANS, Illinois, chicago, crystal lake, schaumburg, naperville, palatine, mchenry, lake, dupage, kane, cook county, VA, IRRRL, FHA STREAMLINES, Fannie Mae, Freddie Mac, Jumbo loans, FHA Information, HUD FHA, FHA Mortgage Rates.
Home Loan Closing Costs
FHA HOME LOAN CLOSING COST SCENARIO:
FHA guidelines allow "up to 6%" of purchase price towards the buyers closing costs from the seller. Do you need all 6% on every transaction? Unlikely, unless you are putting together a smaller purchase transacton.
Example scenario: $4000 needed for buyers closing costs.
Note: many closing fees don't change just because the purchase price is low. For instance, a title company's closing fee might still be $800 whether the transaction is $60,000 or $200,000. An attorney's fees might still be $450 regardless of the purchase price. Etc.
Look at why percentage is a moving target: $60,000 purchase price would require the whole 6% securing the buyer $3600 in closing cost contributions from the seller. $200,000 purchase price would require about 2% seller contribution toward closing costs securing $4000. Ask the loan officer for the specific amount needed. Remember that a buyers loan will be declined if the borrower doesn't show enough funds for both closing costs and down payment.
Not all rates and fees are structured equally. Remember that a buyer can secure lower fees if they take a higher rate (premium pricing) and a lower rate if they take higher fees (buying down the rate).
Important note: All lenders are REQUIRED BY FEDERAL LAW to send a GOOD FAITH ESTIMATE of closing costs to the applicant within three days of formally applying for a home loan. I've recently gotten a handful of calls from Realtors telling me that the buyer never received a Good Faith Estimate and If I could help them calculate closing costs. Because Good Faith Estimates don't require signatures, some lenders delay or avoid sending GFE's in order to NOT have to disclose their fees. GFE's must go out to the applicant within 3 days of formal application - no excuses!
All of my buyers get the following breakdown of closing costs early on during the preapproval stage: www.realestateloans.com/gfe.pdf . You can keep this generic breakdown on your desktop as a go to reference. With me, all home loan applicants get an official Good Faith Estimate when they apply for their loan.
You can also view my "prepare for the process" article at the below link. See how I initiate preapprovals, and keep home loan applicants and transactions from getting in trouble: WELCOME LETTER
or copy and paste this link:
http://gilkerk.realestateloans.com/condominiums/2010/06/30/i-need-to-make-a-home-loan-application-help.html
Questions? Don't hesitate to call. I'm here to help you fund and close those purchase transactions.
Feel free to use the above information or any of the below flyers in your enewsletters or blogs. Just click into or copy and paste any of the below links:
-$10,000 Veterans purchase assistance: www.realestateloans.com/herohomes.pdf
-1st time buyer down payment assistance: www.realestateloans.com/homesmart.pdf
-FHA and VA: www.realestateloans.com/fhava.pdf
-$100 Down Payment: www.realestateloans.com/100hud.pdf
-3% down conventional FHA alternative: www.realestateloans.com/3down.pdf
-HomePath Flyer: www.realestateloans.com/homepath1.pdf
-Comparison FHA and HomePath: www.realestateloans.com/homepath.pdf
-Internal, local underwriting for quick closings: www.realestateloans.com/fastfunding.pdf
-FHA purchase and rehab loan: www.realestateloans.com/203kspro.pdf
-Renovation loan website: www.203kspro.com
-Gil: www.realestateloans.com/gil.pdf
-Internet marketing. Some great info at: http://www.slideshare.net/HubSpot/marketing-charts-graphsdataapril2010slideshare . Call me if you want to exchange ideas regarding online marketing.
-HomePath is hot right now and we're an approved direct lender. Call me if you need an expedited preapproval.
-$10,000 Veterans purchase assistance: www.realestateloans.com/herohomes.pdf
-1st time buyer down payment assistance: www.realestateloans.com/homesmart.pdf
-FHA and VA: www.realestateloans.com/fhava.pdf
-$100 Down Payment: www.realestateloans.com/100hud.pdf
-3% down conventional FHA alternative: www.realestateloans.com/3down.pdf
-HomePath Flyer: www.realestateloans.com/homepath1.pdf
-Comparison FHA and HomePath: www.realestateloans.com/homepath.pdf
-Internal, local underwriting for quick closings: www.realestateloans.com/fastfunding.pdf
-FHA purchase and rehab loan: www.realestateloans.com/203kspro.pdf
-Renovation loan website: www.203kspro.com
-Gil: www.realestateloans.com/gil.pdf
Please call if I can be of service.
Yours, Gil Kerbashian
Mortgage Banking in all 50 States
email: gil kerk @ yahoo com (847) 873-7295
Fax (847) 770-4850
Foreclosure Activity Down for Month, Quarter, and Year
Foreclosure activity hit its lowest level in four years in 2011, decreasing by a third from the previous year according to data released today by RealtyTrac. One in every 69 housing units in the U.S. was subject to a filing during the year, 1.45 percent of the total housing stock. Activity also decreased for the month of December and for the fourth quarter of 2011 according to the U.S. Foreclosure Market Report covering the three periods which was released by the Irvine, California company this morning.
A total of 1,887,777 properties were subject to a foreclosure filing during the year. This was a decrease of 34 percent from 2010 and was 33 percent below the 2009 total and 19 percent below activity in 2008. Total U.S. foreclosure activity and the U.S. foreclosure rate in 2011 were both at their lowest annual level since 2007.
RealtyTrac, which states that its business model is to provide technology solutions and education resources to facilitate buying, selling and investing in real estate, did not attribute the declining activity to an overall improvement in the economy and housing market, but rather to flaws in the foreclosure process. Brandon Moore, chief executive officer of RealtyTrac said, "Foreclosures were in full delay mode in 2011, resulting in a dramatic drop in foreclosure activity for the year. The lack of clarity regarding many of the documentation and legal issues plaguing the foreclosure industry means that we are continuing to see a highly dysfunctional foreclosure process that is inefficiently dealing with delinquent mortgages - particularly in states with a judicial foreclosure process.
"There were strong signs in the second half of 2011 that lenders are finally beginning to push through some of the delayed foreclosures in select local markets. We expect that trend to continue this year, boosting foreclosure activity for 2012 higher than it was in 2011, though still below the peak of 2010."
RealtyTrac compiles its data by tracking documents filed in all three stages of foreclosure:
1. Notice of Default (NOD) and Lis Pendens (LIS). This is the first legal notification from a lender that the borrower on a mortgage loan has defaulted under the terms of their mortgage and the lender intends to foreclose unless the loan is brought current.
2. Auction - Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS): if the borrower does not catch up on their payments the lender will file a notice of sale (the lender intends to sell the property). This notice is published in local paper and contains information pertaining to the date, time and subject property address.
3. Real Estate Owned or REO properties : "REO" stands for "real estate owned" and typically refers to the inventory of real estate that banks and mortgage companies have foreclosed on and subsequently purchased through the foreclosure auction if there was no offer higher than the minimum bid.
Filings in total were also down for the fourth quarter and for the month of December while activity in the component data was mixed. During the quarter there were filings on 586,133 properties, down 4 percent from the third quarter and 27 percent from the same quarter in 2010. Default notices were down 6 percent quarter-over-quarter and 22 percent year-over year while scheduled auctions rose 4 percent for the quarter but were down 32 percent from Quarter 4, 2010. REOs were down 11 percent for the quarter and 24 percent from the same period in 2010.
Foreclosure activity hit a 49 month low in December with foreclosure filings reported on 205,024 properties during the month, one in every 222 units. This was a decrease of 9 percent from November and was 20 percent lower than one year earlier. Default notices decreased 19 percent from the previous month and were down 23 percent from December 2010; Scheduled foreclosure auctions decreased 12 percent from the previous month and were down 24 percent from December 2010; and bank repossessions (REO) increased 10 percent from the previous month but were still down 12 percent from December 2010.
The bad news dragged on for the three states that have topped the foreclosure charts almost from the beginning. While activity was down 31 percent from 2010, more than 6 percent of the housing units in Nevada (one in 16 units) had a foreclosure filing of some type during 2011. This is the fifth year that Nevada has had the highest rate of activity in the nation. Arizona registered the second highest rate for the third year in a row, with 4.14 percent of its stock (one in 24) involved in a filing.
While California dropped out of the top three states several times during the year, it still had the nation's third highest rate of activity for the year with one in every 31 housing units (3.19 percent) subject to a filing. Filings in December, however, were down 38 percent from the previous month. Other states with high levels of activity were Georgia, Utah, Michigan, and Florida.
Supporting the company's assertion that the downturn in activity is a function of dysfunction, RealtyTrac reports that foreclosures during the fourth quarter took an average of 348 days to complete, up from 336 days in the third quarter and 305 days in the fourth quarter of 2010. "The length of the average foreclosure process has increased 24 percent from 281 days in the third quarter of 2010, when lenders began to re-evaluate foreclosure procedures in earnest as the result of the so-called robo-signing controversy."
The average foreclosure process in New York has increased 37 percent during the same time period, and New York properties foreclosed in the fourth quarter took an average of 1,019 days to complete the foreclosure process - the longest of any state.
Who Holds My Loan? Fannie or Freddie? Find out Here.
Who Owns My Loan?
Here are two links and phone numbers that you might find useful. Many
borrowers are getting the run-around when they call their mortgage
servicer to find out if their loan is a "Fannie or Freddie" loan and if
the loan might qualify for a loan modification. Call or email the below
numbers to Fannie Mae and Freddie Mac to find out if your loan is "held"
by the government sponsored loan agencies.
Many of us in the mortgage brokerage business understand borrower
frustration, we've been dealing with it for years when trying to get
mortgages approved.
$10,000 Down Payment and Closing Costs Assistance for Veterans
$10,000 Down Payment and Closing Cost Assistance to Veterans
I am extremely proud to announce to Illinois military families an exclusive, comprehensive finance package of $10,000 in down payment assistance and closing cost assistance.
This program is a special promise to those men and women who recently served in Iraq and Afghanistan, safeguarding our freedom.
The “Welcome Home Heroes Finance package” features:
· First Mortgage
· A Program grant of $10,000 for down payment and closing cost assistance, in the form of a second mortgage with a minimul 2-year recapture - no payments.
· An optional Mortgage Credit Certificate (MCC) can be applied for to save the Veteran additional monies.
Active military, reservists, and National Guards are eligible -- but must be first time homebuyers. Retired Veterans need not be first-time homebuyers.
Getting Your First Time Homebuyer Down Payment Assistance.
**First time homebuyer is someone that hasn't owned a home in that last 3 years.
Buying your first home can be an exciting and intimidating process. With the HomeSmart down payment assistance program and my support you can own the home of your dreams. Great service plus a little help with the down payment and/or closing costs is a great way to buy a home!
For an overview of the program and the necessary steps to obtain HomeSmart assistance, please see below.
Program Overview:
The down payment assistance program is designed for qualified buyers who have limited funds for down payment and/or closing costs. The program has several features:
•A first mortgage with an affordable interest rate.
•A silent second mortgage up to $6,000 for down payment and/or closing costs.
•Variety of loan products including FHA, VA, USDA and conventional loans.
Programs steps and process:
Step One: Determine if you meet the program qualifications
-You must be a first-time homebuyer. A first-time homebuyer is defined as someone who hasn't owned a primary residence within the last three years. Exemptions to the first-time homebuyer requirement:
— Veterans: If you are a veteran, both you and your spouse do not have to be first-time homebuyers.
— Targeted Area: Homebuyers purchasing a home in targeted areas of the state are exempt from the first-time homebuyer requirement.
Call for targeted areas.
-Your total household income and the purchase price of your home must be under the program limits. Call for income limits.
Once you are pre-approved for a loan, you can start looking for a new home.
Once you find a property and sign a contract, you and I will compile a loan package for final review and approval. The information will be reviewed by our staff. The average time to complete this process is 30-45 days.
Congratulations
After your loan package is approved, you will close (transfer of the property to you from the seller). Congratulations - you are now a homeowner!
In this chaotic lending environment, many Loan Officers and Banks have detached from customer service. I disagree. Now more than ever customer service matters and can be delivered by an experienced service provider that understands the lending terrain.
My Customer Bill of Rights:
Accessibility is so important and this is generally where my service comes out #1. Seven days a week, like a doctor, I am commited to my clients and providing solutions when the solutions are needed.
Providing information that is accurate and timely!
I have high expectations for myself as well as my Customers and business partners. Protect borrowers from predatory service providers.
Be upfront with closing costs and expenses. Hedge in favor of the customer not the deal as is done with so many lenders. Post closing costs clearly: www.realestateloans.com/gfe.com. I understand that my fees are competitive and that if someone beats me, they are likely hiding their fees, charging a higher rate to defer fees or not locking the clients rate in order to hedge.
Return all calls promptly during hot events that needs immediate support. There are lots of fires to put out in any given transaction. Being available to discuss matters is critical.
Share my 14 years of experience to the benefit of my clients. Don't hold back information if it can protect borrowers.
Honesty - Be very candid and tell the truth to both the Realtor and the client. What are potential issues and hurdles that may be faced in a transaction.
Access - don't hand the file off to an assistant to close. Be with the borrower all the way to closing
Housing Immobility: President Obama's Sword of Damocles
Negative home equity
and immobility has become a national economic crisis. Nationwide,
homeowners are chained to their homes unable to sell due to the shackles
of negative equity. This lack of mobility comes at a cost to society at
a time when the public’s need to relocate is at its greatest. Industry
needs labor mobility to balance workforce requirements, labor needs
mobility to find and create job opportunities, families need mobility to
consolidate households so that they may care for aging relatives and
others in order to downsize into homes that they can manage and afford.
Federal regulation and poor housing oversight
has frozen public mobility. Banks are resistant or very slow to
negotiate short sale settlements for the fear that the losses on these
mortgages will spiral out of control and create monster reserve
requirements. As a counter, homeowners are choosing to strategically
default in an effort to break the chains of negative equity so that they
may get on with their lives.
Negative equity, short sales and foreclosures have become a lose-lose
situation for America's taxpayers, homeowners and lenders. The Federal
Government needs to encourage and allow Fannie Mae, Freddie Mac and
Banks to offer Negative Equity Carryovers. Negative Equity Carryovers
would not be paid with taxpayer money. Quite the opposite, Carryovers
would substantially reduce taxpayer losses now being incurred through
Fannie Mae and Freddie Mac bailouts.
If a homeowner owes more money than their home
is worth, a Negative Equity Carryover would allow the homeowner to
carry forward the negative equity to a subsequent property purchase- a
property better suited to their current economic, employment or
lifestyle needs. The key to the Model is that negative equity would be
100% PORTABLE. This would free workers to re-align their housing needs ,
allow needed mobility to secure new employment in healthy parts of the
Country and greatly encouraging economic activity through mobility and
housing sales.
If encouraged by prudent legislation, negative equity could also be
slowly extinguished for homeowners over a longer time frame reducing the
need for immediate Treasury infusions into Fannie Mae and Freddie Mac,
as is now the case to cover current short sale and foreclosure expenses.
The “Negative Equity Carryover Model” proposes
that negative real estate equity be carried forward to a subsequent
home purchase OR as a personal loan to the homeowner after their
negative equity property sale. Homeowners, Fannie Mae, Freddie Mac, FHA
and Banks won’t need to waste resources negotiating “losses”. Negative
equity would cease to be an immediate hardship for the Taxpayer,
Homeowner and Lender.
Carry Losses Forward and Amortize Them SLOWLY:
The Model suggests that rather than write the loss off at time of sale
through a short sale or foreclosure, the negative equity can be carried
into the future as an independent debt or lien and slowly forgiven over
an amortized timeframe. The homeowner’s credit would be saved and we as a
nation could avoid the wholesale destruction and lockout of a future
homeownership class due to damaged credit. Lenders could amortize the
negative equity over years while still maintaining some lien position
with homeowners just in case equity returned in the future as market
values began to increase.
I rent in cupertino and have keep a close eye on nearby market for around 5+ years. Recently, looking at some close by properties at trying put offers after 2 years of hibernation, i see that there is extreme craziness - just w.o ARMs.
All offers are at least 80-100k over asking, clearly over what they deserve and way above zestimate. All of them are most all cash, no contingency. Is it extreme craziness or just pent up demand? Or is there other explanation...
FHA loans have become the staple of home buyers accross Illinois. With a 3.5% down payment requirement and rates that are hovering in the mid to high 3's, this loan program is a true benefit to the housing market.
Below are the loan limits for Illinois Counties. Don't forget, you can buy a single family, condo, townhome or a 2-4 unit home guided by the below loan limits with 3.5% down.
County Name
Single Family
Duplex
Tri-plex
Four-plex
ADAMS
$271,050
$347,000
$419,425
$521,250
QUINCY, IL-MO (MICRO)
ALEXANDER
$271,050
$347,000
$419,425
$521,250
CAPE GIRARDEAU-JACKSON, MO-IL (MICRO)
BOND
$271,050
$347,000
$419,425
$521,250
ST. LOUIS, MO-IL (MSA)
BOONE
$339,250
$434,300
$524,950
$652,400
ROCKFORD, IL (MSA)
BROWN
$271,050
$347,000
$419,425
$521,250
NON-METRO
BUREAU
$271,050
$347,000
$419,425
$521,250
OTTAWA-STREATOR, IL (MICRO)
CALHOUN
$271,050
$347,000
$419,425
$521,250
ST. LOUIS, MO-IL (MSA)
CARROLL
$271,050
$347,000
$419,425
$521,250
NON-METRO
CASS
$271,050
$347,000
$419,425
$521,250
NON-METRO
CHAMPAIGN
$271,050
$347,000
$419,425
$521,250
CHAMPAIGN-URBANA, IL (MSA)
CHRISTIAN
$271,050
$347,000
$419,425
$521,250
TAYLORVILLE, IL (MICRO)
CLARK
$271,050
$347,000
$419,425
$521,250
NON-METRO
CLAY
$271,050
$347,000
$419,425
$521,250
NON-METRO
CLINTON
$271,050
$347,000
$419,425
$521,250
ST. LOUIS, MO-IL (MSA)
COLES
$271,050
$347,000
$419,425
$521,250
CHARLESTON-MATTOON, IL (MICRO)
COOK
$365,700
$468,150
$565,900
$703,250
CHICAGO-NAPERVILLE-JOLIET, IL METROPOLITAN DIVISIO
CRAWFORD
$271,050
$347,000
$419,425
$521,250
NON-METRO
CUMBERLAND
$271,050
$347,000
$419,425
$521,250
CHARLESTON-MATTOON, IL (MICRO)
DE WITT
$271,050
$347,000
$419,425
$521,250
NON-METRO
DEKALB
$365,700
$468,150
$565,900
$703,250
CHICAGO-NAPERVILLE-JOLIET, IL METROPOLITAN DIVISIO
DOUGLAS
$271,050
$347,000
$419,425
$521,250
NON-METRO
DUPAGE
$365,700
$468,150
$565,900
$703,250
CHICAGO-NAPERVILLE-JOLIET, IL METROPOLITAN DIVISIO
EDGAR
$271,050
$347,000
$419,425
$521,250
NON-METRO
EDWARDS
$271,050
$347,000
$419,425
$521,250
NON-METRO
EFFINGHAM
$271,050
$347,000
$419,425
$521,250
EFFINGHAM, IL (MICRO)
FAYETTE
$271,050
$347,000
$419,425
$521,250
NON-METRO
FORD
$271,050
$347,000
$419,425
$521,250
CHAMPAIGN-URBANA, IL (MSA)
FRANKLIN
$271,050
$347,000
$419,425
$521,250
NON-METRO
FULTON
$271,050
$347,000
$419,425
$521,250
CANTON, IL (MICRO)
GALLATIN
$271,050
$347,000
$419,425
$521,250
NON-METRO
GREENE
$271,050
$347,000
$419,425
$521,250
NON-METRO
GRUNDY
$365,700
$468,150
$565,900
$703,250
CHICAGO-NAPERVILLE-JOLIET, IL METROPOLITAN DIVISIO
HAMILTON
$271,050
$347,000
$419,425
$521,250
MOUNT VERNON, IL (MICRO)
HANCOCK
$271,050
$347,000
$419,425
$521,250
NON-METRO
HARDIN
$271,050
$347,000
$419,425
$521,250
NON-METRO
HENDERSON
$271,050
$347,000
$419,425
$521,250
BURLINGTON, IA-IL (MICRO)
HENRY
$271,050
$347,000
$419,425
$521,250
DAVENPORT-MOLINE-ROCK ISLAND, IA-IL (MSA)
IROQUOIS
$271,050
$347,000
$419,425
$521,250
NON-METRO
JACKSON
$271,050
$347,000
$419,425
$521,250
CARBONDALE, IL (MICRO)
JASPER
$271,050
$347,000
$419,425
$521,250
NON-METRO
JEFFERSON
$271,050
$347,000
$419,425
$521,250
MOUNT VERNON, IL (MICRO)
JERSEY
$271,050
$347,000
$419,425
$521,250
ST. LOUIS, MO-IL (MSA)
JO DAVIESS
$271,050
$347,000
$419,425
$521,250
NON-METRO
JOHNSON
$271,050
$347,000
$419,425
$521,250
NON-METRO
KANE
$365,700
$468,150
$565,900
$703,250
CHICAGO-NAPERVILLE-JOLIET, IL METROPOLITAN DIVISIO
KANKAKEE
$271,050
$347,000
$419,425
$521,250
KANKAKEE-BRADLEY, IL (MSA)
KENDALL
$365,700
$468,150
$565,900
$703,250
CHICAGO-NAPERVILLE-JOLIET, IL METROPOLITAN DIVISIO
KNOX
$271,050
$347,000
$419,425
$521,250
GALESBURG, IL (MICRO)
LA SALLE
$271,050
$347,000
$419,425
$521,250
OTTAWA-STREATOR, IL (MICRO)
LAKE
$365,700
$468,150
$565,900
$703,250
LAKE COUNTY-KENOSHA COUNTY, IL-WI METROPOLITAN DIV
LAWRENCE
$271,050
$347,000
$419,425
$521,250
NON-METRO
LEE
$271,050
$347,000
$419,425
$521,250
DIXON, IL (MICRO)
LIVINGSTON
$271,050
$347,000
$419,425
$521,250
PONTIAC, IL (MICRO)
LOGAN
$271,050
$347,000
$419,425
$521,250
LINCOLN, IL (MICRO)
MACON
$271,050
$347,000
$419,425
$521,250
DECATUR, IL (MSA)
MACOUPIN
$271,050
$347,000
$419,425
$521,250
ST. LOUIS, MO-IL (MSA)
MADISON
$271,050
$347,000
$419,425
$521,250
ST. LOUIS, MO-IL (MSA)
MARION
$271,050
$347,000
$419,425
$521,250
CENTRALIA, IL (MICRO)
MARSHALL
$271,050
$347,000
$419,425
$521,250
PEORIA, IL (MSA)
MASON
$271,050
$347,000
$419,425
$521,250
NON-METRO
MASSAC
$271,050
$347,000
$419,425
$521,250
PADUCAH, KY-IL (MICRO)
MCDONOUGH
$271,050
$347,000
$419,425
$521,250
MACOMB, IL (MICRO)
MCHENRY
$365,700
$468,150
$565,900
$703,250
CHICAGO-NAPERVILLE-JOLIET, IL METROPOLITAN DIVISIO
MCLEAN
$271,050
$347,000
$419,425
$521,250
BLOOMINGTON-NORMAL, IL (MSA)
MENARD
$271,050
$347,000
$419,425
$521,250
SPRINGFIELD, IL (MSA)
MERCER
$271,050
$347,000
$419,425
$521,250
DAVENPORT-MOLINE-ROCK ISLAND, IA-IL (MSA)
MONROE
$271,050
$347,000
$419,425
$521,250
ST. LOUIS, MO-IL (MSA)
MONTGOMERY
$271,050
$347,000
$419,425
$521,250
NON-METRO
MORGAN
$271,050
$347,000
$419,425
$521,250
JACKSONVILLE, IL (MICRO)
MOULTRIE
$271,050
$347,000
$419,425
$521,250
NON-METRO
OGLE
$271,050
$347,000
$419,425
$521,250
ROCHELLE, IL (MICRO)
PEORIA
$271,050
$347,000
$419,425
$521,250
PEORIA, IL (MSA)
PERRY
$271,050
$347,000
$419,425
$521,250
NON-METRO
PIATT
$271,050
$347,000
$419,425
$521,250
CHAMPAIGN-URBANA, IL (MSA)
PIKE
$271,050
$347,000
$419,425
$521,250
NON-METRO
POPE
$271,050
$347,000
$419,425
$521,250
NON-METRO
PULASKI
$271,050
$347,000
$419,425
$521,250
NON-METRO
PUTNAM
$271,050
$347,000
$419,425
$521,250
OTTAWA-STREATOR, IL (MICRO)
RANDOLPH
$271,050
$347,000
$419,425
$521,250
NON-METRO
RICHLAND
$271,050
$347,000
$419,425
$521,250
NON-METRO
ROCK ISLAND
$271,050
$347,000
$419,425
$521,250
DAVENPORT-MOLINE-ROCK ISLAND, IA-IL (MSA)
SALINE
$271,050
$347,000
$419,425
$521,250
HARRISBURG, IL (MICRO)
SANGAMON
$271,050
$347,000
$419,425
$521,250
SPRINGFIELD, IL (MSA)
SCHUYLER
$271,050
$347,000
$419,425
$521,250
NON-METRO
SCOTT
$271,050
$347,000
$419,425
$521,250
JACKSONVILLE, IL (MICRO)
SHELBY
$271,050
$347,000
$419,425
$521,250
NON-METRO
ST. CLAIR
$271,050
$347,000
$419,425
$521,250
ST. LOUIS, MO-IL (MSA)
STARK
$271,050
$347,000
$419,425
$521,250
PEORIA, IL (MSA)
STEPHENSON
$271,050
$347,000
$419,425
$521,250
FREEPORT, IL (MICRO)
TAZEWELL
$271,050
$347,000
$419,425
$521,250
PEORIA, IL (MSA)
UNION
$271,050
$347,000
$419,425
$521,250
NON-METRO
VERMILION
$271,050
$347,000
$419,425
$521,250
DANVILLE, IL (MSA)
WABASH
$271,050
$347,000
$419,425
$521,250
NON-METRO
WARREN
$271,050
$347,000
$419,425
$521,250
GALESBURG, IL (MICRO)
WASHINGTON
$271,050
$347,000
$419,425
$521,250
NON-METRO
WAYNE
$271,050
$347,000
$419,425
$521,250
NON-METRO
WHITE
$271,050
$347,000
$419,425
$521,250
NON-METRO
WHITESIDE
$271,050
$347,000
$419,425
$521,250
STERLING, IL (MICRO)
WILL
$365,700
$468,150
$565,900
$703,250
CHICAGO-NAPERVILLE-JOLIET, IL METROPOLITAN DIVISIO
HARP was started in April 2009. It goes by several names. The government calls it HARP, as in Home Affordable Refinance Program.
The program is also known as the Making Home Affordable plan, the Obama Refi plan, DU Refi +, and Relief Refinance.
In order to be eligible for the HARP refinance program :
Your loan must be backed by Fannie Mae or Freddie Mac.
Your current mortgage must have a securitization date prior to June 1, 2009
If you meet these two criteria, you may be HARP-eligible. If your mortgage is FHA, USDA or a jumbo mortgage, you are not HARP-eligible.
HARP : Questions and Answers
Do these question-and-answers account for the "new" HARP program?
Yes, everything you are reading is accurate as of today, . This post includes the latest changes as rolled out by the Federal Home Finance Agency on October 24, 2011, and as confirmed by Fannie Mae and Freddie Mac on November 15, 2011.
Is "HARP" the same thing as the government's "Making Home Affordable" program?
Yes, the names HARP and Making Home Affordable are interchangeable.
How do I know if Fannie Mae or Freddie Mac has my mortgage?
Call you loan officer, he or she will help you determine that.
If my mortgage is held by Fannie Mae or Freddie Mac, am I instantly-eligible for the Home Affordable Refinance Program?
No. There is a series of criteria. Having your mortgage held by Fannie or Freddie is just a pre-qualifier.
My mortgage is held by Fannie/Freddie. Now what do I do?
Find a recent mortgage statement and write "Fannie Mae" or "Freddie Mac" on it -- whichever group backs your home loan -- so you don't forget. Give that information to your lender when you apply for your HARP refinance.
What if neither Fannie Mae nor Freddie Mac has a record of my mortgage?
If neither Fannie nor Freddie has record of your mortgage, your loan is HARP-ineligible. However, you may still be eligible for a "regular" refinance to lower rates. f your mortgage is insured by the FHA, use the FHA Streamline Refinance program. The FHA Streamline Refinance helps underwater homeowners, too.
Does HARP work the same with Fannie Mae as with Freddie Mac?
Yes, for the most part, the HARP program is the same with Fannie Mae as with Freddie Mac. There are some small differences, but they affect just a tiny, tiny portion of the general population. For everyone else, the guidelines work the same.
Am I eligible for the Home Affordable Refinance Program if I'm behind on my mortgage?
No. You must be current on your mortgage to refinance via HARP.
Will the Home Affordable Refinance Program help me avoid foreclosure?
No. The Home Affordable Refinance Program is not designed to delay, or stop, foreclosures. It's meant to give homeowners who are current on their mortgages, and who have lost home equity, a chance to refinance at today's low mortgage rates.
What are the minimum requirements to be HARP-eligible?
First, your home loan must be paid on-time for the prior 6 months, and at least 11 of the most recent 12 months. Second, your mortgage must have been sold to Fannie or Freddie prior to June 1, 2009. And, third, you may not have used the HARP program before -- only one HARP refinance per mortgage is allowed.
If I refinanced with HARP a few years ago, can I use it again for HARP II?
No. You can only use the HARP program one time per home.
Is there a loan-to-value restriction for HARP?
No. All homes -- regardless of how far underwater they are -- are eligible for the HARP program.
I am really far underwater on my mortgage. Can I use HARP?
Yes, you can. There is no loan-to-value restriction under the HARP program so long as your new mortgage is a fixed rate loan with a term of 30 years or fewer. If you use an adjustable-rate mortgage, your loan-to-value is capped at 105%.
Maybe I wasn't clear. I am really, really far underwater on my mortgage. Are you sure I can use HARP?
Yes, I am sure. The new HARP program specifically has no loan-to-value restriction so that homeowners in Florida, California, Arizona and Nevada can take advantage of it. You can 300% loan-to-value, and still be HARP-eligible. HARP is now unlimited LTV for fixed rate loans with 30-year terms or less.
If I refinance with HARP using an ARM, do I still get "unlimited LTV"?
No, if you use an ARM for HARP, you are limited to 105% loan-to-value. Only fixed rate loans get the unlimited LTV treatment.
Will my home require an appraisal with the HARP program?
Sort of. Although your home's value doesn't matter for the HARP program, lenders will run what's called an "automated valuation model" (AVM) on your home. If the value meets reliability standards, no physical appraisal will be required. However, your lender may choose to commission a physical appraisal anyway -- just to make sure your home is "standing".
Is HARP the same thing as an FHA Streamline Refinance?
No, the HARP program is administered through Fannie Mae and Freddie Mac. FHA Streamline Refinances are performed through the FHA. The programs have similarities, however.
Does Ginnie Mae participate in the HARP Refinance program?
No, Ginnie Mae does not participate in the HARP Refinance program. Ginnie Mae is associated with FHA mortgages -- not conventional ones. HARP II is for conventional mortgages only.
Do I have to HARP refinance with my current mortgage lender?
No, you can do a HARP refinance with any participating mortgage lender.
So, I can use any mortgage lender for my HARP Refinance?
Yes. With the Home Affordable Refinance Program, you can refinance with any participating HARP lender.
My current bank says that they're the only ones who can do my HARP Refinance. Is that true?
No, that's not true. Or, at least it shouldn't be. There are very few instances in which a HARP applicant will be precluded from shopping for the best rate. It's doubtful that your situation is one of them.
My current mortgage is with [YOUR BANK HERE] and I don't like them. Can I work with another bank?
Yes, with HARP, you can work with any participating lender in the country.
I put down 20% when I bought my home. My home is now underwater. If I refinance with HARP, will I have to pay mortgage insurance now?
No, you won't need to pay mortgage insurance. If your current loan doesn't require PMI, your new loan won't require it, either.
I pay PMI now. Will my PMI payments go up with a new HARP refinance?
No, your private mortgage insurance payments will not increase. However, the "transfer" of your mortgage insurance policy may require an extra step. Remind your lender that you're paying PMI to help the refinance process move more smoothly.
My current mortgage has Lender-Paid Mortgage Insurance (LPMI). Can I refinance via HARP?
No. If your mortgage has lender-paid mortgage insurance (LPMI), you are HARP-ineligible.
How do I know if my mortgage has Lender-Paid Mortgage Insurance (LPMI)?
To find out if your mortgage has lender-paid mortgage insurance (LPMI), locate your loan paperwork from closing. There should be a clear disclosure that states that your mortgage features LPMI, and the terms should be clearly labeled for you.
I don't see an LPMI disclosure in my closing package but I think that I have it. How do I know if my mortgage has LPMI?
If there is no LPMI disclosure, first check if your first mortgage's loan-to-value exceeded 80% at the time of closing. If it did, look to see if you are paying monthly mortgage insurance. If you are not paying monthly PMI, you're likely carrying LPMI (and are HARP-ineligible).
What's the biggest mortgage I can get with a HARP refinance?
HARP refinances are limited to your area's conforming loan limits. In most cities, the conforming loan limit is $417,000. However, there are some cities in which conforming loan limits are as high at $625,500.
Can I do a cash-out refinances with HARP?
No, the HARP program doesn't allow cash out refinance. Only rate-and-term refinances are allowable.
Can I refinance a second/vacation home with HARP?
Yes, you can refinance an second/vacation property with HARP, even if the home was once your primary residence. The loan must meet typical program eligibility standards.
Can I refinance an investment/rental property with HARP?
Yes, you can refinance an investment/rental property with HARP, even if the home was once your primary residence. You can refinance a home on which you're an "accidental landlord" via HARP. The loan must meet typical program eligibility standards.
I rent out my old home. Is it HARP-eligible even though it's an investment property now?
Yes, you can use the HARP Refinance program for your former residence -- even if there's a renter there now.
These things I'm reading here... Why, when I call my bank, do they tell me it's not true?
It's possible that the call center representative to whom you're speaking is neither knowledgeable about HARP, nor the actual mortgage underwriting process. This post is researched and cross-referenced against Fannie Mae and Freddie Mac guidelines, and publicly-available reports from the FHFA.
Are condominiums eligible for HARP refinancing?
Yes, condominiums can be financed on the HARP refinance program. Warrantability standards still apply.
Can I consolidate mortgages with a HARP refinance?
No, you cannot consolidate multiple mortgages with the HARP refinance program. It's for first liens only. All subordinate/junior liens must be resubordinated to the new first mortgage.
Can I "roll up" my closing costs with a HARP refinance?
Yes, mortgage balances can be increased to cover closing costs in addition to other monies due at closing such as escrow reserves, accrued daily interest, and a small amount of cash. In no cases may loan sizes exceed the local conforming loan limits, however.
I am unemployed and without income. Am I HARP-eligible?
Yes, you do not need to be employed to use the HARP Program. HARP applicants do not need to be "requalified" unless their new principal + interest payment increases by more than 20%. If the new payment increases by less than 20%, or falls, there is no requalification necessary.
My original mortgage was a stated income loan. Will my income be verified with a HARP refinance?
No, your income will not be verified via the HARP refinance program unless your new principal + interest payment increases by more than 20 percent. If your new principal + interest payment increases by less than 20%, or falls, there is no income verification necessary.
I am now divorced. I want to remove my ex-spouse from the mortgage. Can I do that with HARP?
Yes. With HARP, a borrower on the mortgage can be removed via a HARP refinance so long as that person is also removed from the deed; and has no ownership interest in the home.
What are the HARP program's mortgage rates?
Mortgage rates for the HARP program are the same as for a "traditional" refinance. There is no "premium" for using the HARP program.
Do HARP refinances use Loan-Level Pricing Adjustments (LLPAs)?
Yes, HARP mortgages use loan-level pricing adjustments, but LLPAs are dramatically reduced on a HARP refinance and, in some cases, waived entirely. For example, there are no LLPAs for fixed-rare HARP refinances with terms of 20 years or fewer. For all other loans, loan-level pricing adjustments are capped at 0.75 points.
Does a HARP Refinances require LLPAs for a 15-year fixed rate mortgage?
No, there are no LLPAs for 15-year fixed rate mortgage via the HARP Refinance program.
Is there a minimum credit score to use the HARP program?
No, there is no minimum credit score requirement with the HARP refi program, per se. However, you must qualify for the mortgage based on traditional underwriting standards.
Do I have to refinance my mortgage with my current lender?
In most cases, no. You can do a HARP refinance with any lender you want.
What does the term "DU Refi Plus" mean?
"DU Refi Plus" is the brand name Fannie Mae assigned to its particular flavor of the HARP program. "DU" stands for Desktop Underwriter. It's a software program that simulates mortgage underwriting. "Refi Plus" is a gimmicky-sounding term that could have been anything. The name has been trademarked, however.
What does the term "Relief Refinance" mean?
"Relief Refinance" is the Freddie Mac equivalent of DU Refi+.
For how long should I lock my mortgage rate via the HARP Program
Lock for 45 days, at minimum. This is because the HARP program, while streamlined for simplicity, still has some grey areas that can lead to delay. It's better to have a rate lock that lasts too long than not long enough.
When does the HARP program end?
If you are HARP-eligible, you must close on your mortgage prior to January 1, 2014 -- 776 days from now.
620 Credit Score, income and purchase price limits per county (call for details), couldn't have owned a home in the last three years, up to $6000 ($10,000 for Veterans), no payment, zero % interest.
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