Is it true that there are no appraisals needed for Harp loans?

FHFA announced several enhancements to HARP, including eliminating the appraisal requirement. The appraisal is no longer required if a reliable automated valuation model (AVM) estimate can be provided by the GSEs.Other enhancements include:?Eliminating certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers;?Removing the current 125 percent LTV ceiling for fixed-rate mortgages backed by Fannie Mae and Freddie Mac;?Waiving certain representations and warranties that lenders commit to in making loans owned or guaranteed by Fannie Mae and Freddie Mac; and?Extending the end date for HARP until Dec. 31, 2013 for loans originally sold to the Enterprises on or before May 31, 2009.

As others have said, it depends on the automated underwritng system findings.

In most cases an appraisal will not be required, it is all dependent on the Fannie Mae of Freddie Mac underwriting system that is used when processing your loan. We are located in California if you would like to give us a call to talk about the HARP program in more detail and determine if you qualify - 858-605-0952

The findings of the automated underwriting (AU)will tell whether or not an appraisal is required -- however, the lender will make the final determination - as they may have what are known as "overlays" and if the lender is not selling your loan directly to Fannie or Freddie they may require the appraisal even if the AU says not needed.

I agree with what has already been written, however, there is a way to greatly improve the likelihood of not needing an appraisal. I have done many HARP 2 loans and have been quite successful in eliminating the necessity of appraisals for the majority of my clients. Regardless of what your home's loan-to-value ratio is, we have lenders who will do HARP 2 loans as long as you can qualify, which is not anymore difficult than qualifying for a non-HARP 2 loan. Give me a call 16/7, or email me your phone number so I can call you, and I'll be happy to walk you through the process. To learn more about me and our mortgage brokerage, click on my picture. When the next page pops up, click on "Website" and you will be redirected to ours. We work exclusively in CA and get loans done fast, typically in less than 30 days, at low interest rates and costs. Representing 40quality lenders that offer more than 1,000 loan programs, we definitely have something for everybody.