HARP Refinance | Underwater Refinance HARP 2.0

 HARP Refinance | Underwater Refinance | Stockton | Lodi |Elk Grove

If you live in the Stockton, Lodi, or Elk Grove area, you have been hit hard with declining values.  Many of us want to stay in our homes regardless of the value, even if the home is underwater.   Stockton and surrounding areas have thousands of homeowners that have been held captive by high interest rates with diminished values.  The HARP program was MADE for this exact situation and refinancing is finally within reach.

The new Making  Home Affordable Refinance Program (HARP) is the Obama Administration’s government refinance assistance program designed to help California home owners who’s mortgage is over 80% LTV or upside down/underwater in value.  This govt. upside down mortgage refinance program is unique because it’s designed to help home owners who are current on their mortgage payment but have not been able to refinance into a lower rate and payment due to declining home values.Underwater Refinance | HARP | Stockton | Lodi | Elk Grove

Stockton Lodi and Elk Grove currently have thousands of homeowners with interest rates over 5% that could easily save $200-$800 per month by taking advantage of the HARP 2 program.  The new HARP program has been making a huge impact on the local Economy by reducing the number of distressed and foreclosed properties.

The media is referring to this loan as the ‘Obama Refinance’, HARP 2.0, or the HARP Streamline Refinance. Lenders often refer to it as the Fannie Mae DU Refi Plus loan or the Freddie Mac Open Access Relief refinance loan.

Refinancing into a lower rate was worth it regardless of how upside down my mortgage was.  We didn’t want to short sale, walk away, or uproot our family from our neighborhood, friends or kids schools. – Stockton, CA Homeowner

I was so happy that I finally had the opportunity to refinance under these amazingly low rates.  My home is my home, no matter what the value.  – Stockton, CA Homeowner

HARP UPDATE –  3/21/2012  – HARP 2 is working!!  We are approving HARP 2 refinance loans that other lenders will not or cannot do.  We are NOT limiting the LTV to 125% or 150% like most lenders are.  We will accept eligible loans if the PMI/LPMI provider will transfer.  We are accepting EA1, EA2, (EA3 with further corporate approval needed) approvals on DU Refi Plus.  And it’s OK if you have a 2nd mortgage!


HARP 2 Refinance Program Guidelines & Qualifying Criteria

  1. No maximum LTV (loan-to-value) – 80% LTV & higher is OK.Underwater Refinance | HARP | Stockton | Lodi | Elk Grove
  2. Your loan must be owned (secured) by Fannie Mae or Freddie Mac.
  3. No late payments in the last 6 months, up to one late pay in last 12 months allowed.
  4. Flexibility on appraisal requirement.  May or may not be required.
  5. Minimum credit score of 620 needed for qualifying.
  6. Income must be documented – tax returns needed for commission/self employed.
  7. Loan must have been originated before 5/31/2009.
  8. If current loan has no private mortgage insurance (PMI), no PMI is required.  If you have PMI now, same level of coverage is transferred to new loan.
  9. Jumbo high balance conforming loan amounts are allowed.
  10. Secondary financing (HELOC’s) must re-subordinate.
  11. Risk based pricing & fees will be eliminated for borrowers choosing fixed rate terms of 20 years or less!


The Mortgage House INC. (Jeff Womack – the www.cahomeloanpro.com is an approved Fannie Mae DU Refi Plus (HARP) and Feddie Mac Relief Refinance California direct mortgage lender.  We provide Fannie Mae HARP mortgage financing in the cities of Stockton, Lodi, Tracy, Galt, Elk Grove, Sacramento, Roseville and all other surrounding CA areas.


Q.  How long does it take?

Loans typically close in 30 days

Q. I live in Stockton so my Loan to Value is high can I refi?

It depends on several factors, LTV, Assets/ Reserves, Debt to Income Ratio, and Credit Score.  The underwriting system looks at everything and provides approvals to those that have a the highest probability to repay the note.  I suggest bringing in the loan for pre-approval regardless of situation.  You would be surprised what passes.

Q. What’s DU and LP?

Once we find out your loan is backed by Fannie or Freddie we submit your information through an automated underwriting system.  Fannies underwriting system is called the Desktop Underwriter (DU) and Freddie use the Loan Prospector (LP).  These system will analyze the qualifying information and let us know if the loan qualifies for the program.

Q. Can I qualify if my home was financed with a Jumbo loan?

Currently there isnt an option for any loan outside Fannie and Freddie backed notes.  I suggest calling me to confirm and place your name on a list in case HARP 3 is passed.  Congress currently has several bills in play that deal with helping home owners with loans not back by Fannie and Freddie.  When we have a new opportunity I will be happy to let you know.

Q.  I live in Stockton is my value still going down?

Stockton has lost nearly 70% of value over the past 4 years  and values have finally plateaued.  Appraisers and lender now consider Stockton a neutral risk.  Don’t expect your values to dive further, but don’t expect them to skyrocket.

Jeff Womack

Jeff Womack

Sr Loan Officer and Mortgage Blogger at The Mortgage House Inc.
HARP, FHA, VA, Conventional, USDA, down payment assistance. Blogger and mortgage expert helping potential home buyers finance homes . Serving Stockton, Lodi, Elk Grove, Sacramento (NMLS #262055)
Jeff Womack


Mortgage & real estate information with your home loan expert in the Stockton and Sacramento area.
Jeff Womack