There are many benefits for you if you qualify for a Home Affordable Refinance Program (HARP) home loan. This loan was created in 2009 by the Federal Housing Finance Agency, the U.S. Department of the Treasury, Fannie Mae and Freddie Mac. This program provides loans to homeowners with solid mortgage payment histories that have large equity losses in homes due to the recent recession.
As of December 2015, over 3.4 million refinances have been completed through HARP with over 325,000 borrowers still eligible for the program. Harp has been updated since the introduction of the program – the changes include:
The loan-to-value ratio ceiling no longer exists. Under certain circumstances there is a possibility of waiving property appraisal requirements. The loan eligibility date is now the date on the note- as opposed to the date when Fannie Mae or Freddie Mac acquired the loan – increasing the amount of borrowers eligible for the HARP loan rates. Lastly the updated program launched in 2012 helped underwater or nearly underwater homeowners with mortgage balances that where higher than the properties fair market value and refinanced loans with lower monthly payments.
One question you have to answer – Do you meet HARP loan requirements? Your mortgage loans must be guaranteed or owned by Freddie Mac or Fannie Mae. Also the maximum loan to value ratio you can have is 80 percent and the mortgage must be current – you cannot have any payments due for more than 30 days in the last 6 months and no more than one late payment in the last year. Plus your original loan must have been closed by May 31, 2009.
If you meet the requirements for the HARP program you can refinance your mortgage and get the advantages of lower interest rates and shorter term loans. You can also switch to a fixed-rate instead of an adjustable rate mortgage.
Bottom Line – A HARP loan possibly can give you a financial boost.
Keep in mind that whether you are interested in buying a home or listing a home, a Realtor should represent you– this person is working for your benefit and will help you navigate through the buying or selling process. I have thirteen years in New Home Sales and fifteen years in General Real Estate sales!
I Sell Las Vegas! www.iSellLasVegas.com
Thanks and make it a terrific day…………Robin