HARP 2.0 | Home Affordable Refinance Program
Posted by David Robinson on Thu, Dec 08, 2011 @ 04:44 PM
You may have heard about the recent changes to HARP (Home Affordable Refinance Program). This is the government program that allows homeowners to refinance their home loan even if they owe more than the home is currently worth. For example: If you owe $225,000 on your loan and your home is only worth $175,000, you may still be able to refinance to a lower rate.
Originally, the program had a limit of 105% loan to value, it was then increased to 125%. The most recent changes actually remove the loan to value cap on 30-year fixed rate mortgages. This means that homeowners who are significantly under water may have a solution to deal with an adjustable rate mortgage or challenging mortgage payment.
Of course, with every loan program there are some restrictions.
1. Your loan must be backed by FannieMae or FreddieMac.
2. You can have 1 missed payments in the last 12 months but must NOT have missed a payment in the last 6 months.
3. You must have less than 20% equity in your home.
4. Your current loan must have been originated before May 31, 2009.
5. Your lender must be willing to participate in the program. Not all lenders are.
So if you are underwater on your home and would like to refinance to fix your adjustable rate or lower your current interest rate, this program may be right for you. Contact your lender to see if you qualify.
If you are faced with foreclosure or would like to sell your home, contact us and we can discuss a possible short sale.