Consumers MortgagesSM

HARP 2.0 Refinance Program

What exactly is HARP 2.0?

The Federal Housing Finance Agency, along with Fannie Mae, announced a series of changes to the Home Affordable Refinance Program (HARP) in an effort to attract more eligible borrowers who can benefit from refinancing their home mortgage. The refinance options within HARP 2.0 are designed to assist borrowers who have demonstrated an acceptable payment history on their existing Fannie Mae mortgage loan but who may not have been able to refinance due to the value of their home.

How do I know if my loan is owned by Fannie Mae (FNMA)?

Search the FNMA database to find out. Be sure to enter your address exactly as it appears on your current mortgage statement.

What enhancements were made to HARP?

HARP 2.0 addresses several key aspects:

  • Eliminating the need for a new property appraisal in most cases
  • Eliminating certain risk-based fees (closing costs) for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers
  • Removing the current 125% loan-to-value ceiling for fixed-rate mortgages (30 years or less) backed by Fannie Mae
  • Second homes and investment properties will be added to the program, although different rates and fees may apply

How do I know if I'm eligible for HARP 2.0?

  • In general, borrowers must meet the following criteria:
  • The mortgage must be owned or guaranteed by Fannie Mae.
  • The current loan-to-value ratio must be greater than 80%.
  • The mortgage must have been sold to Fannie Mae 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 between March 2009 and May 2009.
  • The borrower must be current on the mortgage at the time of the refinance, with no late payments in the past six months and no more than one late payment in the past 12 months.

How long will the HARP 2.0 program be available to borrowers?

The HARP 2.0 program has been extended until December 31, 2013.

Does the property have to be my primary residence to qualify?

HARP 2.0 applies to primary residences with loan-to-values greater than 80%. You will be able to apply for similar refinancing options for second homes and investment properties with the recent changes made to the HARP 2.0 program.

Is it true that the value of my home does not matter when using the HARP 2.0 program?

Loan-to-value requirements vary based on the terms of the new loan as listed below:

  • All loans under the HARP 2.0 program must have a loan-to-value greater than 80%.
  • No maximum loan-to-value for fixed-rate mortgages with terms up to 30 years
  • Maximum loan-to-value of 105% for fixed-rate loans with terms greater than 30 but no higher than 40 years
  • Maximum loan-to-value of 105% for ARMs with initial fixed periods greater than or equal to five years and terms up to 40 years

For any additional questions, we encourage you to contact one of our mortgage loan officers at your nearby service center, or call 1-877-ASK-CCCU (275-2228).

Only applies to first mortgage products. Mortgage payments must be current and no record of late payment within the last six months, and may only have had one late payment maximum over the past 12-month period. Current mortgage loan-to-value ratio (LTV) must be higher than 80%. Mortgage must have been sold to or guaranteed by Fannie Mae on or before May 31, 2009. Mortgage must not have already been refinanced through HARP in the past, unless it happens to be a Fannie Mae loan that underwent a HARP refinance between March and May 2009. Harp II program runs through December 31, 2013 and requirements are subject to change based on final program guidelines.