Harp (Home Affordable Refinance Program) - Help for Distressed Texas Homeowners

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.

HARP (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

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.

 

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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.