As we recently wrote about, the Fannie Mae HARP refinance program has now been expanded to allow more homeowners the option to refinance and take advantage of historically low interest rates. Starting December 1, 2011 the program will allow homeowners to refinance their existing home loans, up to 125% of their current home values. However, there will be an even bigger expansion of the program in 2012.
There are of course certain guidelines that must be met to qualify for this refinance program, as we have covered in recent articles. However, the most important of those being that your current home loan is owned by Fannie Mae, which can be looked up at: http://www.fanniemae.com/loanlookup. And in addition, your loan must have been sold to Fannie Mae prior to June 1, 2009.
Now, if your home loan does fall into these guidelines, then come March 1, 2012 the program will lift the 125% cap on loan to value (size of your home, as opposed to the value of your home) and have not set loan to value limit. This means that essentially, no matter how upside down your home is. If you fit into Fannie Mae’s guidelines, they will let you refinance and take advantage of the very low interest rates in the current marketplace.
Of course, we are a few months away from this loan program being available, but it does appear that this new program will be an option for even more homeowners, who have not been able to take advantage of other recent initiatives, due to being too upside in their homes.
For full qualification, of course it is always advisable to contact a licensed mortgage lender, such as Strategic Mortgage. As always, as guidelines and standards change we will provide additional information and updates.
For more information on home purchase loan or refinance programs for existing and potential home owners, please contact Bill Kamboukos of Strategic Mortgage at (480) 219-3682 or by emailing: firstname.lastname@example.org or online at www.strategicmtgaz.com