In Minnesota, the Home Affordable Refinance Program 2.0 has helped lower mortgage rates and payments for thousands of Fannie Mae and Freddie Mac owned mortgages. However, many Minnesota homeowners still don't know about the government program or are skeptical that the HARP 2.0 program can really help them out.

For beginners, the Home Affordable Refinance Program 2.0 is only for responsible homeowners whose mortgage is owned by Fannie Mae or Freddie Mac. The only guideline that automatically disqualifies you from the program is if you have missed 1 payment on your mortgage in the last 6 months or if you have more than 1 late payment in months 7 from 12.

HARP 2.0 Loan to Value

Before mid March 2012 when changes were made to the HARP 2.0 program, many underwater homeowners could only refinance their homes up to 105 percent loan to value. Today, many loan to value restrictions have been lifted and I have honestly helped a couple refinance their Fannie Mae owned condo with a loan to value ratio of 269 percent.

Refinancing a home loan at 269 percent is pretty insane and to be honest is not the norm. There are many factors that go into the amount you can borrow against your house and this home loan just happened to fit the criteria of the unlimited loan to value.

If I did not see this 269 loan to value mortgage with my own eyes I would not believe it myself, but the fact is I have personally helped a homeowner accomplish this feat.

Private Mortgage Insurance

The rules on transferring Private Mortgage Insurance went into effect in mid March when the changes to Private Mortgage Insurance were made. There are two types of Private Mortgage Insurance, Lender Paid and Borrower Paid, in which both types can be refinanced under the HARP 2 program.

Borrower Paid Private Mortgage Insurance simply means that the homeowner is paying extra insurance on their mortgage until the loan to value ratio reaches 78 percent or less at which time it can be dropped. When refinancing your Borrower Paid Mortgage Insurance under the HARP 2.0, your current Private Mortgage Insurance Company simply transfers your current Private Mortgage Insurance under the same terms to the new lender.

Lender Paid Private Mortgage Insurance means that you received a slightly higher rate in exchange for your lender to pay a onetime premium for your Private Mortgage Insurance. As a borrower you do not see any additional payments being made on your mortgage payment outside of your principle, interest, homeowners insurance and taxes. When refinancing a Lender Paid Mortgage Insurance policy under the HARP 2 program, your Private Mortgage Insurance simply disappears as it was paid in full when you previously refinance your home.

Currently most Private Mortgage Insurance Companies are participating in the HARP 2 program, but you have to find the right lender who works with your individual Private Mortgage Insurance Company. The Private Mortgage Insurance Companies my company currently works with include, but are not limited to PMI Co, Radian, MGIC, United Guarantee, Genworth, RMIC and CMG.

What I Can Do For You

As a licensed (NMLS #627335) mortgage professional in Minnesota I can help you find the right HARP 2.0 program for you and explain the process in a step by step manner that you will be able to comprehend.

The first step to obtaining a HARP 2 loan is to fill out the form to the right to initiate contact. From there I will give you a call and we can discuss any further questions you have from there and if you are ready and comfortable we can go ahead and fill out an application over the phone.

Once I have received your application I will need to run your credit report to verify your mortgage payments and review your credit history. From there I will run your scenario through either Fannie Mae's or Freddie Mac's automated underwriting system. Each respected system will do a few things for us, one, it will give us an approval or denial and tell us why, two it will tell us the value of your property we can use to avoid having to order and pay for an appraisal and three, it will tell us if you have and who your Private Mortgage Insurance Company is.

When I have received the information mentioned above I will shop the 40 different lenders that Guardian Financial Inc. of Maple Grove has a business relationship with to help you find the right program with the least amount of hassle for you.

I would be lying if I told you that everybody qualifies for the Minnesota Home Affordable Refinance Program 2.0. However, I have had many underwater homeowners who have turned to me after being denied by their local bank or other lender and I have been able to help them obtain financing through the governments HARP 2 program.