This page is dedicated to HARP 2.0 borrowers who have a Freddie Mac high loan to value loan (above 125% loan to value).
Unfortunately, as you may have experienced, there have been challenges in the process for refinancing a Freddie Mac higher “loan to value” loan. Many lenders have elected to not participate in the Freddie Mac program or put a cap on the loan to value (125%). There are few lenders that will accept unlimited loan to value Freddie Mac loans. Due to the volume and demand, the time frame for underwriting is a minimum of 90 days or possibly longer.
How is your loan to value determined?
When your file has been sent to Freddie Mac, they place a value on your property based off their own valuation system. Freddie Mac gives and value called an “HVE” or Home Value Explorer.
The Good News
There has been a bill proposed in the Senate (S.170) called the “Helping Responsible Home-Owners Act 2012″ that may eliminate many of the barriers faced in this program. Although this bill has gained much support, unfortunately we have to wait until the bill has passed for any changes. You can contact our Arizona Senators HERE to help encourage them to support the bill.
If you have a Freddie Mac loan to value below 125%, the time frame for underwriting is 45 days.