The Government’s Revamped HARP Program For Underwater Homeowners

Mortgage and Lending with Blue Water Home Loans NMLS# 166527

The revamped HARP program will provide some relief to those, who have paid on time, but are underwater.  Now they will be able to take advantage of the historically low rates...

Original content by Daryl Mitchell NMLS 221138

Making Home AffordabieThe Federal Home Finance Agency announced big changes to its Home Affordable Refinance Program Monday. More commonly called HARP, the Home Affordable Refinance Program is meant to give “underwater homeowners” opportunity to refinance.

With average, 30-year fixed rate San Antoio Mortgages still hovering near 4.000 percent, there are more than a million homeowners in San Antonio and nationwide who stand to benefit from the program overhaul.

To qualify for the re-released HARP program, you must meet 4 basic criteria :

  1. Your existing home loan must be guaranteed by Fannie Mae or Freddie Mac
  2. Your home must be a 1- to 4-unit property
  3. You must have a perfect mortgage payment history going back 6 months
  4. You may not have had more than one 30-day late payment on your mortgage going back 12 months 

Most notable about the new HARP refinance program, though, is that the government is waiving loan-to-value requirements on a HARP loans. Homeowners’ participation in the program  are no longer restricted by their home’s appraised value. In fact, the new HARP doesn’t even require an appraisal, in most instances.

With the new HARP program, underwater mortgages can be refinanced without LTV limit or penalty.

According to the government’s press release, pricing considerations for the new HARP program will be released on or before November 15, 2011; and lenders are expected to be offering the program as of December 1, 2011.

If you think you may be eligible, first confirm that either Fannie Mae or Freddie Mac is backing your loan. Both groups provide a simple, online lookup.

If your loan cannot be located on either of these two sites, your current mortgage is not backed by Fannie Mae or Freddie Mac, and is not HARP-eligible.

The FHFA’s official press release contains an FAQ section. In it, you’ll find minimum qualification standards, as well as information related to condominiums and to mortgage insurance.

The HARP program is meant to help a wide group of homeowners, but each applicant’s situation is unique. For specific HARP questions, be sure to talk with a loan officer. 

Daryl Mitchell  Legacy Mutual Mortgage NMLS 221138


2526 N Loop 1604 W Ste 150

San Antonio Tx 78248

Certain conditions and restrictions may apply call for more details.


Comments (1)

Dave Sullivan
Real Estate One - Birmingham, MI
Michigan Realtor with an investor viewpoint

Lester,  Will this take off,  do you think It is being built up more than it will really create opportunities for some home buyers? or have they already started to do this type of loan?   

Jan 13, 2012 02:01 AM