HARP Refinance Minimum Credit Score Imposed

As the official release of the new HARP Refinance guidelines approaches March 17th (Happy St. Patty’s Day!), we are starting to get bits of information from lender as to how they will underwrite the new HARP files.

If you have browsed this website, you will see mention of no minimum credit score required on new HARP Refinance submissions (HARP 2.0). Well, we may have to make some edits to the website.

Lenders are starting to let us know about their guidelines on HARP 2.0. Lenders usually have what are called “overlays,” or additional underwriting requirements on top of the base requirements that Fannie Mae or Freddie Mac require.

It seems that most of our lenders will have very few overlays, which is good news, but they are hinting at a minimum credit score requirement of 620. This is the requirement that has been in effect for all types of conventional loans including HARP Refinance loans for many years. However, the new HARP 2.0 guidelines were supposed to have no minimum credit score.

If this is the only lender overlay, or one of only a few overlays, then this is not too bad for prospective HARP borrowers. In recent years, lender overlays have been heavy on most programs, making qualification difficult, so the addition of only a couple overlays on the new HARP 2.0 program is actually good news for consumers.

Interesting matters that may interest you:

Delay no more, HARP Refinance is up for grab, don’t miss it!

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