The HARP (Home Affordable Refinance Program) is being revised and has some very exciting changes that will benefit anywhere between 800,000 to 1 million homeowners.
The new changes that President Obama is implementing allows homeowners who have “underwater mortgages” to refinance no matter what is owed. This revision removes the requirement of having equity, which caused limitations for many homeowners.
In order to be eligible for the new HARP plan, you must have your mortgage owned by either Fannie Mae or Freddie Mac, and it must have been financed prior to June 1, 2009. Keep in mind, who you make your mortgage payments to does not determine if Fannie Mae or Freddie Mac own your mortgage. Contact a mortgage broker to find out if Fannie Mae or Freddie Mac own your mortgage.
1. Purchase loan before June 1, 2009
2. Owned by Fannie Mae or Freddie Mac
3. Must be Current on your mortgage
4. No late payments in the last 6 months
5. No more than 1 late in the past 12 months
Once more information is published about the new HARP program, we will update as soon as possible.
This revised HARP (Home Affordable Refinance Program) is going to open up HUGE windows of opportunities for 800,000 to 1 million homeowners. With this new revised plan, homeowners who have “Underwater Mortgages” are eligible to refinance to the new low interest rates and reduce their monthly payments. There are so many questions regarding this new plan and we want to try to answer some of them for you!
What is the revised HARP Program?
This program is allowing homeowners who have been unable to refinance due to lack of equity, the chance to refinance and receive a lower interest rate.
Who is eligible to refinance?
Homeowners who financed their home from May 31, 2009 or prior. Eligible homeowners must live in the present home that is being refinanced. This program is only available to those who financed with Fannie Mae or Freddie Mac. If you refinanced your home with the old HARP program then you are not able to refinance again. You must also have no late mortgage payments in the past 6 months, and no more than one 30 day late payment in the past 12 months.
How long is this program available?
This program has been extended to December 31, 2013.
What is the benefit of refinancing?
The main benefit for homeowners to refinance their “underwater mortgage” is to lower the interest rate and monthly payment to avoid foreclosure.
Keep a look out for a video in the coming week of a more detailed explanation of the HARP program as we wait to hear more information.