Editing Refinancing (section)

=== No appraisal required ===

The [[Obama administration]] authorized several refinance programs aimed at helping underwater homeowners take advantage of the historically low interest rates. Most of these programs do not require an appraisal, and encompass all loan types. The programs offered in 2013 include:
# '''FHA Streamline Refinance''': The largest group that benefits from this refinance program will be those who have a FHA loan that was endorsed prior to May 31, 2009. For those who meet this date, the FHA PMI rates are very very low. This Streamline Refinance Program without an appraisal is also available to borrowers who no longer live in the property (as their primary residence) or own the house as Investment Property.
# '''VA Loan Refinance''': The [[United States Department of Veterans Affairs|Veterans Administration]] offers Interest Rate Reduction Refinancing, or IRRR, for veteran homeowners who simply want to reduce their interest rate, with no appraisal. These loans are also available to qualifying veterans who no longer live in the property as their primary residence.
# '''HARP Refinance''': When the [[Home Affordable Refinance Program]] (HARP) was launched in 2009, it sought to help homeowners with underwater mortgages refinance their loans into lower monthly payments and interest rates. However, the first version of the program failed to help as many homeowners with underwater mortgages as was hoped, leading to the release of a new and improved version of HARP, dubbed HARP 2, to deal with the complications. HARP 2 no longer caps the loan-to value at 125%, and allows any loan-to-value acceptable, thereby covering underwater homes.<ref>{{cite web|title=HARP 2.0 rules, and who will benefit|url=http://www.marketwatch.com/story/harp-20-rules-and-who-will-benefit-2011-11-18|publisher=[[MarketWatch]]|date=Nov 18, 2011|access-date=30 May 2015}}</ref> 
#'''USDA Home Loans''': No appraisal required – the current residence must be in a USDA "footprint area" and currently be insured under the USDA program. So refinancing from a conventional loan or a FHA loan to USDA will not work under this program. No Credit Report Required – the current mortgage must be current, and all of the previous 12 months of mortgage payments need to be made on time. That's all. We just verify that you made your house payments on time. Employment Verification Required – we will need to verify that you are employed, and drawing enough money to meet the underwriting guidelines... meaning we must prove that you have enough income to make your house payments. Cannot take cash out – All you can do is finance your current loan balance, and the new Guarantee Fee (USDA PMI) which is 1.5%.