Harp (Home Affordable Refinance Program) & HomePath

Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

So far I have covered two Federal Programs that were designed to help homeowners in trouble with their mortgage.  These programs are usually mentioned as an acronym, which makes it difficult for the average person as well as even those in the Real Estate Industry to know what the program stands for. As I have stated before these blogs are not meant to go into in depth explanations of each program, but to give just enough of an explanation that those reading these blogs will be able to have a basic understanding of each program, and be able to remember them.

The first two acronym and program that I covered were HAMP (Home Affordable Modification Program), and HOPE aka H4H (Home for Homeowners).  Today I will cover two more Programs HARP and HomePath.

HARPHARP (Home Affordable Refinance Program)

This program was first announced in 2009, and revised by FHFA in December 2011.  The reason why it had to be revised was because it simply did not come close to doing what it was suppose to the first time, so the Government decided to revise it and give it a second chance.

HARP is suppose to make it possible for a homeowner with a Fannie Mae or Freddie Mac mortgage to be able to refinance into a new Fannie Mae or Freddie Mac mortgage without Loan-To-Value (LTV) restrictions.  Basically this program is for Borrowers who have acceptable credit, and can fully document income and assets, but are under water on their property because of property values going down.  The Lender that originates the new loan has to be the same as the Lender who is presently is servicing the loan.  Loans that originally received an Expanded Approval (EA), are not eligible for this refinance.

The Government is hoping that Lenders will participate in this program even though they are refinancing properties that are worth less than the amount that is being refinanced.  The reason why these Lenders would consider doing that is because they are already on the hook for the loan.  And by lowering the interest rate and monthly payment, they are making it less likely that the homeowner will default, and they have to foreclose



HomePath is not an acronym, it is the full name of the program.  HomePath is a program that Fannie Mae has created to try to help sell their Real Estate Owned (REO) properties.  HomePath is Fannie Mae's version of FHA's Streamline 203K.  HomePath Mortgages allow for a Borrower to purchase a Fannie Mae owned property that requires light to moderate renovations.  The loan amount includes both the funds to purchase the property and the funds to renovate it, up to 35% of the completed value, but no more than $35,000. 

Anyone interested in purchasing one of these Fannie Mae properties should visit HomePath.com, which is where Fannie Mae lists their REO properties nationwide.  But keep in mind that their is a reason that Fannie Mae is willing to do this type of loan on these properties, and that is because many of them are in need of some TLC, and would not sell otherwise.



Who To Call For Your Mortgage Needs In Connecticut:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Old Saybrook, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or souto@snet.net


Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Sue Ellett 01/30/2012 05:35 AM
Lending / Financial
What is New in Loan Products
1st Time Buyers
Real Estate Rookie
harp homepath

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Monika McGillicuddy
Berkshire Hathaway HomeServices Verani Realty - Hampstead, NH
Southern NH & the Seacoast Area

I wish there was a program that would work with a NH Housing loan and FHA.  So many people are upside down... it's so sad!



Jan 26, 2012 01:31 PM #1
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Monika, one of the programs that I will blog about is a program that our version of NH Housing (CHFA) has which is call Emergency Mortgage Assistance Program EMAP.  If we have that program they may have something like it as well.

Jan 26, 2012 01:38 PM #2
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Hi George -- I hope that these programs are helping folks. I think Home Path sounds like a good program.

Jan 26, 2012 01:53 PM #3
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

George, isn't this another one of those programs where the buyer doesn't need an appraisal as it's been done to determine value? I didn't know that you could do renovations within the note like a 203k

Jan 26, 2012 02:59 PM #4
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

I'm glad you incorporated the word "supposed", when you addressed HARP. It will be interesting to see all the new guidelines, once finally published. Great post.

Jan 26, 2012 11:40 PM #5
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

George so many programs I just hope consumers will really benefit: then again it is out of my hands I can only hope.

Jan 27, 2012 01:29 AM #6
Karen Hurst
Rhode Island Waterfront!

Hi George!

I thought there was a "time limit" on when you last modified a loan. Yet, the other night, when I was watching the President, he mentioned a "new" program that would not have all the same red tape.

Is there another one coming out, or is this one changing? Or is there still a time limit like you cannot have modified after June 2009?

Jan 27, 2012 09:15 AM #8
Debbie Walsh
Shahar Management - Middletown, NY
Hudson Valley NY Real Estate 845.283-3036

George great idea going over all of these different programs.  It is hard to keep them straight sometimes.

Jan 27, 2012 09:54 AM #9
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Joan HomePath is one of the ones that is actually being used, and helping to get some of the tough Fannie Mae properties off the market.

Ed, you are correct no appraisal needed, that is one of the reasons why we are not doing it.  This is a risky loan for the Lenders doing them, they are placing a lot of trust in Fannie Mae. 

Joe, yes there is still a lot of mystery there.

Jennifer there was no hope in HOPE ........... LOL

Karen originally there was, but I am not sure if the same applies to the revised program.  As far as I know they have not come out with all the guidelines on the revised program, so until they do a lot of gray area remains.

Debbie I know what you mean, I get them confused and I am in the business :)

Jan 27, 2012 10:54 AM #10
Nick T Pappas
Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Hun... - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

Hello George, great explanations of these programs.  I know for a fact that the Homepath program has helped many of my buyers.

Jan 27, 2012 11:02 AM #11
Sue Ellett
Better Homes and Gardens Real Estate ~ Paragon Property Group - Marble Falls, TX
Marble Falls, & Austin, TX, Lake Travis, Lake LBJ

Thanks for the information.  I just reblogged it.   

Jan 30, 2012 05:39 AM #12
Sharon Harris
Keller Williams Keystone Realty - Hanover, PA

I just sold a homepath property in Pa. It was a nice home in fair condition. However the loan took much longer then a Fha or Usda. Plus I have had people not fit into there guidelines more so then they do.

Still a great programs.

Jan 31, 2012 11:46 PM #13
Beth Franssen
Los Angeles, CA

The HARP program has been extended through 2013. A homeowner with a former primary residence, now a rental property in Arizona was able to refinance through this program in 2013 in 30 days. The interest rate was competitive, closing costs reasonable, and terms of loan flexible to borrower's needs while still lowering payments. Now as a rental it is not a loss-leader!

This site was invaluable for determining eligibility: http://harpprogram.org/faq.php

Feb 25, 2013 08:27 AM #14
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