In my last post I discussed the San Diego HARP refinance program and a recent success story on a San Diego refinance. In that post, I mentioned that I would talk about an option that allows us to offer a refinance loan on a first mortgage up to 125% Loan to Value (LTV).
This program is not always easy to find and normally it is only offered by the lender who is currently servicing your loan, but that is where the benefit of being a San Diego mortgage broker and banker comes to fruition. In most cases it is better to act as a mortgage banker and be the direct lender, but in those cases where a loan scenario might not work on the banking side, we can utilize one of our relationships as a San Diego Mortgage Broker. The San Diego HARP program and the following success story is the perfect example!
125% Loan to Value Refinance on a San Diego County Condo
For the most part, the ability to get a 125% LTV refinance falls under the same San Diego HARP program guidelines as the 105% LTV refinance that I explained in detail in my previous post. Please refer back to it if you would like further details, but the main points are that Fannie Mae or Freddie Mac must be the owners of the loan and I have to get an automated underwriting approval that says the loan qualifies for the San Diego HARP program at the higher LTV.
My client had bought a condo in La Mesa, California, a suburb of San Diego, back in 2006 near the peak of the real estate market. He obtained a 5/1 ARM (Adjustable Rate Mortgage, fixed for the first 5 years) loan, which at the time was at a great rate and worked for his needs. Five years later though, his condo value had decreased significantly and his loan was about to enter the adjustable phase. He contacted me to help him refinance into a 30 year fixed mortgage.
To be able to pay off his current loan, we needed a new loan amount of $262,500, but his condo was now only valued at $210,000. So, in order to refinance his loan we needed a program that went up to 125%. One of my lenders offers the San Diego HARP program up to 125% even when they are not the current servicers. That means I can take any qualifying loan to them. I was able to get my client refinanced into a 30 year fixed mortgage at 5.5% at 125% loan to value. My client was very happy.
Please let me know if you would like to see if you qualify for this program, which I have available throughout California.