Harp 2

[boont]

Just completed a Refi using the Harp 2 program. It took four months but was successful. Saved about $300 a month on a rental property that is under water.

If you are wondering if this can be done, well, it can.

b.

 

[MichaelB]

Thanks for letting us know.

 

[panhead]

harp2? I'm not familiar. I have a good friend that has a rental property that is underwater. It is NOT owner occupied. Was this your situation as well? What interest rate were you able to get?

 

[timeasterday]

We're in the process of a HARP 2 refi with AIM loans. Our LTV ratio is 116% and we are going from a 6.375% 30-year loan to a 3.625% 20-year loan. It doesn't drop the payment a lot but we'll pay it off sooner with less interest. I calculated that we will pay it off in 10 years with extra principal payments each month. I forget why we didn't qualify for the original HARP - something to do with PMI or a higher LTV ratio at the time.

 

[boont]

Answer

"It is NOT owner occupied. Was this your situation as well? What interest rate were you able to get?"

Mine is not "owner occupied" either. It is a rental house. The bank appraisal (which was wrong) was so low it was crazy. Lucky it doesn't make any difference with Harp2.

My new rate is 4.5%, which is pretty good for income property. I was caught at 5.75% and couldn't get out of that loan until Harp2 appeared.

Seems like the key is a strong credit score and decent income. I met both of those rules.

b.

 

[panhead]

boont, thanks for the info, I've started looking into it. I own a 2 family with a friend and we were unable to refi due to a ridiculously low appraisal as well (rate is currently 5.875%). It's not underwater, but most of the equity vanished, lol. Good thing is, he lives in the 2 family so I should be able to get owner occupied rates. He also owns another house by himself at a high interest rate that is crazy underwater. He should qualify on this one as well.