Making Home Affordable Refi

by Agnes
(Kansas City, Missouri USA)

Ask Kate about Making Home Affordable Refi and Subprime Mortgage Loans: Dear Kate, I thought Making Home Affordable Refi programs (HARP and HAMP) were to help people.

Agnes continues... I've been attempting to do a HARP refinance with my current servicer. I've really gotten a big run around for the last 3 months and then, just this week, I was told that I could not qualify for a Making Home Affordable refi (HARP) because my current loan is an EA-II, subprime loan.

I've read over Fannie Mae's guidelines (yes, almost all 1200 pages), and it seems that EA-II loans and some subprime mortgages can do a HARP.

I thought the HARP and HAMP programs were to help people. I've never missed a mortgage payment (or paid a late fee) in the last 17 years. However, both my husband and I are now disabled and the 7.625 percent current mortgage is killing us.

Our credit scores are 663 and 707, respectively. We cannot afford upfront fees (appraisals, etc.) due to our very tight budget.

Can you clarify if EA-II's and subprime mortgage loans are eligible for HARP? Any other thoughts?

Kate Answers: Making Home Affordable Refi and EA-II

Ask Kate at
Dear Agnes,

As subprime became the rage, Fannie Mae redefined their guidelines with EA-II to get in on some of the action. Sigh...

Sidebar: Read here about the trap of subprime mortgage loans and my solution.

The confusion you are caught in today over these EA-II loans is a carryover from the chaotic subprime days.

Lender Restriction Lifted

But here's the bottom line. You are not confined to originating a Making Home Affordable Refi with your original lender, which in your case is probably the biggest bank left standing.

I have never read (although I'll admit I have not perused the 1200 page guide) that EA-II loans are restricted to the original lender for a HARP loan. So I'd start shopping lenders. The worst you'll find is no new information. The best scenario is a 4 or 5 percent mortgage.

Guide To Shopping For Mortgage Lenders

Before you begin shopping for lenders, go to my free guide How To Compare Mortgage Rates And Lenders In 6 Steps. My guide will organize your efforts and save you time.

I have also included more loan modification help at the bottom of this page. Be sure to check out this one main question to ask yourself about mortgage loan modifications.

Let me know if this page was helpful to you. Comment here on Making Home Affordable Refi.

Or Ask Kate a question here.

Best wishes and good luck finding an affordable mortgage rate,

Ask Kate

More Help to Save Your Home

Special Edition Making Home Affordable - 13 options for homeowners struggling with unaffordable house payments.

Loan Modification Ask and Answer - Answers to loan modification, Home Affordable Programs, HARP, and HAMP questions.

Can I do a Mortgage Loan Modification myself? The answer is yes, but...

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When promises to Sell Your House seem too good to be true, remember this.

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How to explain to your lender that you are trying to Prevent Foreclosure.

The first step to stopping Foreclosure is understanding its impact on your life.

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Subprime Mortgage Loans fulfilled an important role in America.

Every homeowner with a Subprime Mortgage needs a long term plan.

Subprime Mortgages - Learn how to transition to traditional mortgage financing.

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