If you’re not behind on your mortgage payments but have been unable to get traditional refinancing because the value of your home has declined, you may be eligible to refinance through the Home Affordable Refinance Program (HARP). HARP is designed to help you get a new, more affordable, more stable mortgage. Here are the program parameters.
- The borrower MUST be current on the mortgage at the time of the refinance, with no late payment in the past six months and no more than one late payment in the past 12 months.
- Current mortgage must have been secured on or prior to May 31, 2009.
- No maximum LTV for 30 year fixed-rate loans.
- 105% LTV for adjustable rate mortgages.
- Only available for Freddie Mac and Fannie Mae backed mortgages.
- Only one HARP refinance allowed per mortgage. If you used HARP you cannot use HARP 2.
- Under HARP, if your original loan did not require mortgage insurance, your new loan won’t, even if the loan-to-value ratio well exceeds 80 percent. However, if your current loan has mortgage insurance, your new one has to have the same amount of coverage.
- You must have a reasonable ability to pay the new mortgage payments.
- The refinance must improve the long term affordability or stability of your loan.
- No cash out allowed.
- If your existing loan has private mortgage insurance, you will need the same amount of insurance coverage for a refinance under HARP. If your existing loan does not have private mortgage insurance, it will not be required as part of a refinance under HARP.
To find out if you qualify for HARP, give me a call today!