Changes to HARP 2012
The Home Affordable Refinance Program was reinstated to continue through 12/31/2013. Along with that statement came relaxed eligibility guidelines in order to make the program more accesible to those who need it most.
Billed as HARP 2.0 the most significant change to the guidelines is the elimination of the 125% loan-to-value (LTV) cap allowing more underwater borrowers to refinance into lower rate loans. Other key changes include relaxed credit score and income requirements and relaxed occupancy requirements allowing borrowers to refinance their second home or investment property.
The government is also making efforts to speed up the approval process by eliminating the need for an appriasal in many cases.