The Answer is No!
If you’re considering a HARP refinance, you’ll be pleased to know that it does not require an appraisal. The Home Affordable Refinance Program (HARP) was established by the federal government to help underwater homeowners refinance their mortgages, even if they owe more than their homes are worth.
HARP allows borrowers to refinance without the need for a new appraisal because the program is designed to help homeowners who may not have enough equity in their homes due to a decrease in property values. By eliminating the need for an appraisal, HARP streamlines the refinance process, making it easier and more affordable for eligible homeowners to take advantage of lower interest rates.
FAQs about HARP Refinance:
1. What is HARP Refinance?
HARP stands for the Home Affordable Refinance Program, which is a government program designed to help homeowners refinance their mortgages, even if they owe more than their homes are worth.
2. Who is Eligible for HARP Refinance?
To be eligible for HARP refinance, you must have a mortgage owned by Fannie Mae or Freddie Mac, be current on your mortgage payments, and have a loan-to-value ratio greater than 80%.
3. How Does HARP Refinance Benefit Homeowners?
HARP refinance allows homeowners to refinance their mortgages at lower interest rates, even if they owe more than the current value of their homes.
4. Can You Get Cash Out with a HARP Refinance?
No, HARP refinance does not allow homeowners to take cash out of their homes. The primary goal of the program is to help homeowners lower their monthly mortgage payments.
5. Does HARP Refinance Require Mortgage Insurance?
If your original loan did not have mortgage insurance, your HARP refinance will not require it either. However, if you had mortgage insurance on your original loan, it will be transferred to your new loan.
6. Are Closing Costs Higher for HARP Refinance?
Closing costs for HARP refinance are typically the same as for a traditional refinance. However, some lenders may offer reduced or waived closing costs for HARP-eligible borrowers.
7. Can You Have a HARP Refinance with a Second Mortgage?
Yes, homeowners with second mortgages can still qualify for HARP refinance. However, the second mortgage lender must agree to subordinate their lien position to the new HARP loan.
8. Is HARP Refinance Available for Investment Properties?
No, HARP refinance is only available for primary residences and second homes. Investment properties are not eligible for the program.
9. How Long Does a HARP Refinance Take to Close?
The HARP refinance process typically takes around 30 to 45 days to close, though it can vary depending on the lender and individual circumstances.
10. Can You Refinance with HARP Multiple Times?
No, homeowners can only refinance once through HARP. Once you have participated in the program, you are not eligible for another HARP refinance.
11. Is Credit Score a Factor in HARP Refinance?
While credit score is considered as part of the underwriting process for HARP refinance, there is no minimum credit score requirement set by the program.
12. What Happens if You Miss Payments During HARP Refinance?
If you miss payments during the HARP refinance process, your application could be denied, and you may not be able to refinance through the program. It’s important to stay current on your mortgage payments during the refinance process to ensure eligibility.