Is an appraisal required for a HARP Loan?
Answers | 2
No appraisal since there are no valuations requirements for a HARP loan
Actually, appraisals can often be required on HARP loans, particularly when Fannie Mae guaranteed the loan, as opposed to Freddie Mac. Freddie typically computes a value that lenders are required to use, but if the home is in an area with few comparable sales, appraisals can be required. The key benefit to HARP loans is that borrowers can refinance even if their homes' values are less than the amount owed. If the current loan doesn't have PMI, the new loan isn't required to either, even if there is less than 20% equity. Great program, but yes, it can and often does require appraisals. Hope that helps, Ted