HARP Loans

Frequently Asked Questions

What is HARP?

The Home Affordable Refinance Program (HARP) is a government program designed to help you get a more affordable and more stable mortgage by allowing you to refinance when you may not otherwise be able to.

How is HARP 2.0 different than HARP 1.0?

  • With HARP 2.0 the deadline to apply for the program was extended to December 31, 2013.
  • The maximum Loan to Value (LTV) cap to be qualified for the program was removed.
  • The appraisal process was streamlined.

Why would I want to apply for HARP?

If you want to refinance your mortgage to a lower rate but have been declined due to a high loan to value ratio (LTV), meaning your mortgage balance is higher than the value of your home, HARP gives you the ability to do so if you meet the qualifications of the program.

How do I know if I qualify for HARP?

Your mortgage must currently be owned by Fannie Mae or Freddie Mac. You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following Web sites.

Fannie Mae
Visit online:
Fannie Mae Loan Look Up
OR
Call 800-7FANNIE
(8 a.m. to 8 p.m. EST)
Freddie Mac
Visit online:
Freddie Mac Loan Look Up
OR
Call 800-FREDDIE
(8 a.m. to 8 p.m. EST)

Once you have confirmed ownership by Fannie or Freddie, you will also need to meet the following criteria:

  • The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
  • Your mortgage payments are current and there have been no late payments in the past six months and no more than one late payment in the past 12 months.
  • Your mortgage must not have already been refinanced through HARP in the past.
  • The current loan-to-value (LTV) ratio must be greater than 80%.
  • A minimum credit score and maximum debt-to-income ratio apply and may differ depending on the underwriter.

Can FAIRWINDS process my HARP application?

FAIRWINDS can process your HARP application if your loan is owned by Fannie Mae. We are unable to help you if your mortgage is owned by Freddie Mac. However, you can visit Freddie Mac's website to find a listing of Freddie Mac lenders. The same other qualifications apply as mentioned above.

In addition, if your mortgage is through FAIRWINDS Credit Union, and was sold to Fannie Mae, a minimum credit score of 680 is required. If your mortgage is through another institution, different credit criteria may apply. A maximum debt-to-income ratio of 45% also applies to all mortgage borrowers to process your request.

This underwriting criteria is subject to change.

Are there fees associated with HARP?

A mortgage application fee and closing costs do apply to HARP loans through FAIRWINDS Credit Union.

What are the mortgage rates?

HARP rates are based off of our daily published rates. Your rate will be customized based on term, loan amount, property type and credit score.

What documentation will I need for the application process?

After you have verified your qualification for HARP and are ready to apply, you will need the following information:

  • Last two paystubs
  • Last two months of bank statements
  • If self-employed you will need two years of complete business and personal tax returns

What if my mortgage is not owned by Fannie Mae or Freddie Mac?

Contact your mortgage servicer directly to better understand available options for you.

Still Have Questions?
Give our Real Estate Department a call at 407.647.8252, option 1 or email us to learn more about your refinancing options.