It's Alive!!! HARP Extended thru 2016
The Federal Housing Financa Agency (FHFA) has directed Fannie Mae & Freddie Mac to extend the Home Affordable Refinance Program (HARP) for another year. The HARP refinance programs were initiated in 2009 to help borrowers with little or no equity in their homes take advantage of falling interest rates and save money on their monthly mortgage. This move to 
help fight the effects of the 'mortgage meltdown' helped millions of families stay in their homes. It has also helped prevent millions of loan officers from becoming bankrupt alcoholics**.
**statement completely made up, but quite possibly true
Originally, the HARP program was set to expire in 2013 but was extended because so many home owners were taking advantage and reaping benefits (and because the housing recovery was taking it's sweet time). The program surely put a dent in the number of foreclosures, and several close friends and family members were able to avoid rate adjustements by refinancing into lower fixed rate programs, all thanks to HARP.
HARP loans are few & far between these days, largely because eligible borrowers have already taken advantage, but there are a few stragglers out there that will still benefit from the program (I just had a HARP-eligible borrower call this week). Eligible loans must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009. You can find out if a home loan is eligible for a HARP refinance by using the following tools:
If your loan is a Fannie Mae loan: Use Fannie Mae's Loan Look Up Tool Here
If your loan is a Freddie Mac loan: Freddie Mac's Loan Look Up Tool is Here
It's estimated that several hundred thousand people can still benefit from the HARP program, and the challenge now is to reach them. Since the programs have been available since 2009, and lenders have spent millions (if not billions) on advertising the program, it's hard to believe anyone HASN'T heard about it. Perhaps others have heard of it but don't know if it would benefit them. Here are some highlights of the program that show who it helps most:
- No LTV/CLTV limits, so home equity is not a concern for a HARP refinance.
- PMI transfers are acceptable. If a current loan has PMI, the policy can be transferred over to a new HARP loan.
- Less stringent income requirements. Lenders have more flexibility in underwriting under the HARP program than they do under traditional conventional underwriting guidelines.
- Appraisal waivers are common. Referred to as a PIW, this feature of HARP saves borrowers money and time.
- Higher debt to income thresholds. DTI allowances tend to be higher on HARP loans than traditional mortgage loans.
Since HARP and HAMP were supposed to be temporary programs, and the number of borrowers benefitting from the program is shrinking, it's likely this will be the last time HARP is extended, and the last chance for eligible borrowers to take advantage. Help spread the word that HARP is still around, and will now be available to eligible borrowers through 2016!
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