Best of Luck!
Refinancing under the HARP program is an amazing opportunity. It is offered to any borrower who has remained current on a mortgage that was recoreded prior to May 31, 2009.
In addition to owner occupied homes, this program is available to any finance property currently owned by Fannie Mae or Freddie Mac.
That being said, there have been no stipulations that state you may not rent out the home and move onward to another property.
That being said, because your home will not meet the 30% equity requirement, the new lender will not take into consideration any proposed rents to your home. At this time, underwriting guidelines do not allow rents to be considered if their is less than 30% equity in the home or 70% LTV.
Keeping this in mind there are lenders who, without proof that you have been a recent landlord, will not count that rent against your debt ratio, either.
Bottom line: in order to obtain new financing, you will have to qualify for both payments.
But first!! Get your HARP loan financing now!! :)
I have recently helped a client who had a modification and purchased a second home with an FHA loan a year later.
When you show a hardship in order to get a modification (Refi) , this will count against you when qualifying for your next home.Also , It is very important to abide within the terms of any federally backed loan programs to avoid serious and potential legal issues.
Rental income isn't usually counted unless shown on your tax returns, however , if you're next home is larger , closer to work , etc..you are allowed to use FHA to purchase a second home.
Your best bet is to talk to the lender who accomplished this ..
Please email me at : theJORYgroup@gmail.com or call 951.742.3751 and I'll pass along that info...