Home Affordable Refinance Program (also known as HARP)

This refinance program was schedule to end in December 2011, but the adminstration decided to extend this program for another year in order to help responsible homeowners. If your property value is upside down and you have been making your mortgage payments on time for at least the past 12 months, you might be able to refinance. Here are some of the qualifications that you have to meet (subject to change):

  • Step 1: Your existing home loan must be either owned by Fannie Mae or Freddie Mae (even though it is still being serviced by your existing lender). Enter your home address on either one of this websites and you will know if they own it or not. If not, you do not qualify for this program.– Fannie Mae: http://www.fanniemae.com/loanlookup/
    — Freddie Mac: https://ww3.freddiemac.com/corporate/

 

  • Step 2: Your most recent 12 months mortgage payments were all made on time

 

  • Step 3: The same borrower(s) on the existing loan are refinancing together again. If a borrower is being added or removed, additional guidelines will be required depending on the lenders.

 

  • Step 4: Your loan to value must not exceed 125% (Loan amount divided by the property value). Both Fannie Mae and Freddie Mac offered both programs with maximum of 105% and 125%.

If you have an existing home equity line (HELOC) or second mortgage, this program will require you to re-subordinate it. Also, you must go back to your original lender in order to refinance, not with a different bank (subject to change in the future).

I hope most of you will take advantage of this program before it ends. Whether you are a W2 wage earner or self-employed, most lenders will not verify your income as long as they can verify that you are still currently employed. Assets – not verified. There is no limit to debt to income ratio. In addition, lenders may not require a full appraisal if the estimated value works. Why? Because the intention of this program is to lower the interest rate/payments for responsible homeowners. If you have been making your mortgage payments on time now, they assume that you will continue to so with a lower payment. Make sense right?

Drop me a line if you have a question and I will help you with what you can.

Note: If you have a history of bankruptcy and foreclosures, additional requirements will apply.

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