HARP 2 Program Property Questions
by Kenneth in New Jersey and by N. Craig in Washougal, Washington
HARP 2 Program Property Type and Occupancy Status Guidelines: Kenneth asks Kate for Making Home Affordable Refinance occupancy guidelines because he rents out his vacation home condo. N. Craig's streamline refinance question is about HARP 2 property types - single family homes, 2 to 4 units, condominiums, cooperatives, and manufactured housing.
Question 1: Condo HARP 2 Refinance Occupancy Status Guidelines By Kenneth from New Jersey
Hello Kate. I own a condominium in North Carolina but we do not live there. We use our token 2 weeks out of the year (maybe) to go there. The rental is a managed by the group itself. In another words they rent it out and I get normally a fixed income per month, less if they rent it less often. (The amount is also capped regardless of how much they make.)
I am guessing this is considered an investment property, not a second home? Anyway, I am trying to refinance it under HARP II through my original lender.
First question... Is it an investment property or second home?
Second question... When applying for a HARP refinance, is there a better response to this question to either get a better rate or qualify for the refinance etc?
Ask Kate answers: Condo HARP 2 Refinance Occupancy Status Guidelines
I would venture to say with 99% certainty that your mortgage lender will require your condo to be underwritten and priced as an investment property for two reasons:
1) Renters spend significantly more time vacationing in the condo than you.
2) It is an income producing property.
But the good news is that the HARP 2 program refinances primary residences, vacation homes (also called 2nd homes), and investment rental properties of 1 to 4 units.
Occupancy status guidelines are a serious hot spot with lenders. This is due to a higher rate of mortgage foreclosure among rented out homes as opposed to primary residences and vacation homes.
So you will find the least guidelines for owner-occupied homes as well as the best HARP 2 mortgage rates and closing costs. Investment rental properties have stricter guidelines, higher down payment requirements, and pricier interest rates and fees. Vacation homes fall between these two occupancy types.
For more details, go to Shashi's letter at Are HARP 2 Mortgages Only for Owner Occupied Homes
Question 2: Manufactured Home HARP 2 Program Property Type Guidelines By N. Craig from Washougal, Washington
Kate, Our triple wide manufactured home sits on 6 acres of land designated agriculture. Are we eligible to streamline refinance to lower our interest from 6% and lower our mortgage payment?
Ask Kate answers: Manufactured Home HARP 2 Program Property Type Guidelines
Hi N. Craig,
I am going to assume your streamline refinancing question is referring to the Making Home Affordable Refinance Program.
The HARP 2 plan includes manufactured homes as one of the acceptable property types - single family homes, 2 to 4 units, condominiums, cooperatives, and manufactured housing.
First determine if your current mortgage is owned by Freddie Mac or Fannie Mae
Secondly, do you meet the other four HARP 2 program initial eligibility requirements
Next, contact your lender or another HARP 2 participating lender to begin the loan process. Because of the 6 acres of land, you may get the best results with your current loan servicer. Regardless of which lender handles your refinance, expect a full property appraisal.
If you were asking about the recent FHA streamline refinancing announcement by President Obama
, leave a comment on this page
to let me know you still have questions.
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