Yes.
Not only does the Home Affordable Program allow underwater homeowners to refinance with no equity, both Fannie Mae and Freddie Mac allow closing costs to be rolled into the new loan for no out-of-pocket expense.
In addition to closing costs, borrowers may also include financing costs (points) and prepaids/escrows for homeowner’s insurance and property taxes.
Fannie Mae has no limitation on the amount of closing costs, financing costs and prepaids/escrows that can be rolled into the new HARP loan amount.
Freddie Mac on the other hand restricts the amount that can be financed into the loan amount to the lesser of 4% of the unpaid principal balance of the existing loan or $5000.
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