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HARP II Program: Don’t Be Misled

With the HARP II program under way, we have come across some misleading information that is being given to consumers from other companies. We want to clarify any information that has been given regarding the HARP II program, and make sure you are fully aware of what the HARP II program entails.

At Stateline Funding Corporation, we offer the newest HARP II program available. This is President Obama’s new refinance program that became available in December 2011 for homeowners with no equity.

However, there are lenders that are misinforming consumers and providing inaccurate information. For example, we have people approved under our HARP II program that have actually been denied by their own lenders.

Here’s Why:

Lenders are saying they offer the HARP II program, but it’s the original version of the HARP program known as DU Refi Plus.

DU Refi Plus has equity restrictions. With the HARP II program, there are no equity restrictions. You can refinance your loan no matter how much you owe, and no matter what the current value is. Consumers need to be aware that the HARP II program is the newest version of the DU Refi Plus program.

Du Refi Plus requires an appraisal. With the HARP II Program, an appraisal waiver is received if an accurate home value is input during the DU Approval.

Du Refi Plus has lower debt to income ratio requirements. The debt ratio requirement is 45%.

With HARP II, the debt ratio can go up to 60% depending on the strength of your file.

If you haven’t noticed, HARP II is separate from the actual DU Refi Plus program. We want consumers to be aware of what is being offered by other lenders. Not all banks are offering unlimited loan to value loans as well. So before you move forward in any process, make sure you are fully aware of the loan program you are being offered. As always, you can contact our company, Stateline Funding Corporation, and we will gladly discuss your options regarding the HARP II refinance program.

Home Prices Have Dropped

With home prices dropping to levels that are similar to the year of 2002, there are two ways to look at this situation.

Unfortunately for the current homeowner who purchased back in 2006 or so, they are losing equity in their home and are most likely upside down. Obviously in this situation you are unable to sell your home unless you decide to short sale. There is the HARP 2 program that benefits these situations for homeowners who want to keep their home, and make lower monthly payments. This is a program that benefits loans prior to June 1, 2009. There is more information available at

According to an article from CNN,

“Home prices have fallen a whopping 34.4% from the peak set in July 2006.”

The flip side to this situation, is for potential homebuyers. Some homebuyers lack confidence in purchasing a home right now, when it should really be the opposite. Right now this market has increased the buyer’s power tremendously. The homes that once sold for $400,000 are selling for $200,000. A home buyer is getting way more for their money in this housing market.

Although it is upsetting for the responsible homeowner who has lost equity in their home, it is a positive situation for the potential homebuyers right now.

We encourage homebuyers to purchase now, while their buying power is tremendously strong. The interest rates are still low around 4 percent. With low home prices, and low-interest rates, there could not be a better combination to buy a home right now.

Homes are still a great investment. We will recover from this economic down turn, and values will increase again, it will just be a slow process along the way. Any current home shopper should buckle down and really focus on purchasing before their buyer power lessens.

HARP Phase 2 Begins

Exciting news has officially been released for the second phase for the Home Affordable Refinance Program (HARP 2.0). Not only is March 17th St. Patrick’s Day, but it is also the day that HARP 2.0 will begin its second phase.  Software changes will be made to update the HARP 2 program on Saturday, March 17, 2012.

Come Monday morning, March 19th, homeowners can begin to refinance their home loans to today’s low interest rates for an unlimited loan-to-value ratio.  Up until then, the loan-to-value ratio has been capped at 125%, but will be removed this coming week. This second phase, that many homeowners have been eagerly waiting to be released, allows homeowners to refinance no matter what is owed on their home.

As a reminder, this program is only eligible for mortgages that were sold prior to June 1, 2009 and are owned by either Fannie Mae or Freddie Mac. There are look up tools available on this website (right hand side).

There are no appraisals required for the refinance program. Instead a property inspection waiver (PIW) may be able to take the place of an appraisal for a much smaller fee in the transaction.

There are several criteria you must meet in order to be approved for this loan which were stated above. In addition to those requirements, you must also be current on your mortgage. For a more detailed list of eligibility, click here.

If you would like to begin the HARP 2.0 refinance process, you can fill out a request at the bottom of this page, or fill out a secure online application with Stateline Funding Corporation.

This HARP program is a great opportunity for homeowners who would like to lower their interest rate, and their overall monthly payment. If you have more questions about the HARP 2.0 program visit 

To be contacted about the HARP 2.0 program fill out the form below. **We service California Residents Only**

HARP 2- Video Update of new program

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