If you’re underwater on your current mortgage, there are options that can help you. You could be eligible to refinance your home without the worry of having to pay mortgage insurance or pay down the principal on your existing mortgage. The HARP® Loan Program could be for you, see if you qualify.
What is the HARP® Loan Program?
HARP started in 2009 and has been called many different names, but the official name is The Home Affordable Refinance Program®. Some other names the program is known for are; Making Home Affordable, A Better Bargain for US Homeowners, Relief Refinance, The Obama Refinance, and DU Refinance Plus. With HARP® you can get a lower interest rate than your existing loan, you could also shorten your loan term, or change from an adjustable to a fixed-rate mortgage and there’s no minimum credit score. Now that the HARP® guidelines are simpler, people who have been turned down before could now be eligible for HARP® refinancing.
Much like any other mortgage program, the HARP® Loan program has qualifications, guidelines and requirements. Such as, your original loan must be one that is backed by Fannie Mae or Freddie Mac, Your current mortgage must also have a date of no later than 5/31/2009. If your current mortgage is an FHA, VA, USDA, or a Jumbo mortgage, unfortunately, you’re not eligible for the HARP® Loan Program.
FHA mortgages can be refinanced through the FHA Streamline Refinance Program, VA mortgages can be refinanced with the VA IRRRL or VA Streamline Refinance, and USDA mortgages can be refinanced with the USDA Streamline Refinance Program. All of which are available in almost every state.
Other qualifying guidelines are as follows;
- Current on your existing mortgage
- No more than 30 days late payments made to your mortgage in the last 6 months
- Your home is your primary residence
- Your loan is backed by Freddie Mac or Fannie Mae
- Your existing mortgage loan originated before May 31, 2009
- Your current LTV (Loan-to-value) ratio must be greater than 80%
HARP® has significantly changed since it started back in 2009. The program requires less documentation and has simpler guidelines, all designed to approve more loans. Let us help you get matched with a lender to discuss your options and find out if you qualify for a HARP® Loan.
Included in the HARP® program
- No “Underwater” Limits- Borrowers can now refinance their mortgage regardless to how far their home has dropped in value.
- No Appraisals and No Underwriting- Your refinance process will be much faster and smoother without having to get an appraisal or having to get your loan underwritten.
- Modified Fees- Some risk-based fees have been reduced for borrowers who refinance into a shorter term loan.
- Less Paperwork- Now when you use the HARP® program to refinance, lenders don’t require income verification making for a lot less paperwork.
- Program Deadline- Act fast if you’re contemplating the HARP® refinance program because it’s set to end December 31, 2016.
There are many benefits to the HARP® program like being able to lower your monthly payment, reduce your interest rate, change to a fixed rate mortgage, build up the equity in your home faster, and lower closing costs. Help us get you matched with a lender today, to discuss your refinance options and find out if you’re eligible for the HARP® program. It’s as simple as a click of the mouse!