Last week, we wrote about the extremely low rates available for refinancing your home. This week, we wanted to touch on a particular loan called the HARP Loan and what you need in order to qualify.
What is the HARP Loan?
The Home Affordable Refinance Program was issued in 2008 when home values dropped and was intended to help struggling homeowners make their mortgage payments.
The newly modified Home Affordable Refinance Program will allow more homeowners to refinance as it allows anybody to refinance their mortgage, regardless of how much the owe and how much their home value has dropped.
The modified HARP loan program removes a stipulation from previous refinance regulations that stated that homeowners who owed an amount on a loan that was 25 percent, or more, greater than the home’s value would not be eligible to refinance. The removal of this stipulation allows up to an estimated 4 million homeowners to refinance.
Who Qualifies for the HARP Loan?
To qualify for a HARP mortgage, homeowners must first have a mortgage that is owned or guaranteed by Fannie Mae or Freddie Mac. Additionally, they must have a one to four unit home as their primary residence, be current on their mortgage (no late payments more than 30 days in the last 12 months), have a home that has decreased in value, and have a first mortgage not over 125 percent of the home’s current value.
Currently, the HARP loan program is available until June, 30th, 2012. If you want to take advantage of some of the HARP program’s great opportunities, give The Mortgage Guys Atlanta a call so we can help refinance your home loan.