By Loan City Home Loans
Informative Information on Mortgages, Lifestyle & Home Ownership.

What Is The Home Affordable Refinance Program (HARP)?

Have you been having trouble getting traditional refinancing for your home because of a major decline in its value? Well, if your monthly mortgage payments are current, the Home Affordable Refinance Program (HARP) may be the key.

HARP refinance loans were designed to help homeowners obtain a more stable, reasonably priced mortgage loan. HARP loans help to make homeownership more affordable in the US.

HARP Refinance Eligibility Criteria

If you’re looking for a more affordable option for your home loan than traditional refinancing, HARP refinance could be the answer. In order to be eligible, your current mortgage loan must meet all of the criteria below:

  • Your mortgage loan must be guaranteed or owned by Fannie Mae or Freddie Mac.
  • It must have been sold to Freddie Mac or Fannie Mae no later than May 31, 2009.
  • You cannot have previously refinanced your mortgage loan under HARP unless it’s through Fannie Mae that was refinanced through HARP at any time between March 2009 to May 2009.
  • The home’s current loan-to-value (LTV) ratio has to be at least 80% or more.
  • Your mortgage payments must be current, and must have been good standing for the last 12 months.

* Check potential eligibility for Freddie Mac loans.

* Check potential eligibility for Fannie Mae loans.

Where to Begin

  • First, find out whether or not your home mortgage loan is guaranteed or owned by either Freddie Mac or Fannie Mae.
  • Get in touch with your current mortgage loan companies. Or, contact an approved Freddie Mac or Fannie Mae mortgage servicer to get more information about HARP refinance.
  • Compare mortgage costs and rates with various mortgage servicers to ensure that you get the best terms available.

How Do I Apply for a HARP Refinance Loan?

Gather up the following documents and take them to your local HARP specialist to have your data analyzed:

  1. Your income tax return most recently filed
  2. Information related to any junior lien mortgage loans on the home
  3. Monthly payments and account balances of all your current debts

Refinance Your Home with a HARP Loan

Contact the mortgage servicer to which you currently make your monthly mortgage payments to see if they’re HARP participants. If they don’t, contact a mortgage servicer who does participate in HARP.

* Note: The Home Affordable Refinance Program ends on December 31, 2015.

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