A PIW Helps With HARP 2 in Arizona

HARP 2 Refinance – Phoenix Arizona

Phoenix NASCAR fans this is not Elmer Fudd’s acronym for Phoenix International Waceway.  PIW stands for Property Inspection Waiver and this is something every Phoenix Arizona Mortgage Lender loves to see!  This is something that can give a Phoenix area HARP borrower a HUGE advantage when trying to refinance their HARP or HARP 2 eligible home.  While Fannie and Freddie were supposed to roll out the new and improved HARP 2 eliminating the 125% Loan To Value the truth at this point in time is the unlimited version of  HARP is not completely rolled out.

As a result, many Phoenix Arizona homeowners that needed the removal of the 125% loan to value (which would allow them to be upside down on a mortgage to an unlimited level) in order to take advantage of HARP 2 do not currently have the option as HARP 2 has not been fully released.  The challenge is that these particular Phoenix residents owe more than 125% of what their home is worth.   Until HARP 2 is fully released and the cap of 125% loan to value is removed these homeowners are stuck on the sidelines while low rates taunt and tease them from the playing field.  I have good news for folks in this situation!  There is a potential back door that may allow many of these homeowners into the HARP 2 party.

How Will a PIW Help Arizona Home-Buyers?

When Fannie Mae “re-coded” its underwriting system  (basically a computer engine) on March 17th 2012 they tweaked the system to allow more PIW’s or property inspection waivers.  In short, now more homeowners will receive a “get out of jail free card” when it comes to having to order an appraisal.  When your Phoeinx Arizona mortgage lender runs your application  for HARP through Fannie Mae’s system you may receive a PIW.  If you are one of the lucky ones that get a PIW (property inspection waiver) this is equivalent to aunt Fannie Mae saying ” you can refinance without your Phoenix Loan Officer ordering an appraisal.”

Lets take this one step further.  Based on the fact that most borrowers are still subject to the 125% loan to value limit a PIW must be given after your file is run through Fannie Mae’s system with a value estimate that keeps your loan to value at or below 125%.  Lets look at a real example from a client from Monday of this week that ties directly into a PIW saving the day!

HARP 2 Success Story

       A homeowner from Tucson, Arizona called me and wanted to look into an Arizona HARP 2 refinance.  He owed $200,000 on his current mortgage.  He believed his house would appraise for $120,000. This would put him at a loan to value of   167% which exceeds the 125% max limit and would essentially kill his chances of a successful HARP 2 refi.   While there is a good chance that his appraisal would have confirmed a value of $120,000, this client received a PIW when I ran his file through Fannie Mae’s system with a value of  $160,000 which put him right at a loan to value of 125%.  As Wayne and Garth would day – “GAME ON.”  This Arizona homeowner is now able to move forward due to the fact that Fannie Mae granted a PIW based on my manual entry of a value of $160k.

       Interestingly enough, when I increased his value over the $160k thus pushing his loan to value below 125% Fannie dug her heals in.  Coincidence?  I think not.  I do not  think that Fannie let my clients LTV go to the max 125%  is not simple an irony.  At the end of the day, that is my humble opinion and not sure it will amount to a hill of beans.  Just thought I would share!

Bottom line – even with this current drag on the full release of HARP 2 and all the upgrades that come with it there are still options that every Fannie Mae eligible eligible homeowner in Arizona should look into even if they think they are over the 125% limit.  As your Phoenix Arizona area HARP 2 Lender I will make sure we are uncovering every stone.

Call me today to discuss your HARP 2 refinance.  You may also APPLY NOW.

In order to find out if you are eligible for HARP/HARP 2 call me.  You can also look your current home and mortgage up on the following HARP links:

By Jeremy House

 

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