Ever since the enactment of the Home Affordable Refinance Program (HARP) in 2009, it has helped over three million residents to refinance their homes. Homeowners have used this underwater mortgage when they have surpassed their property values.
The government updated the HARP loan program in March 2012, so that troubled residents will find it easier to search for lenders. Primary Residential Mortgage, Inc. added that they will need them to refinance their government-backed Fannie Mae and Freddie Mac mortgages.
Based on the Federal Housing Finance Agency (FHFA), over 600,000 Americans who own homes could still be eligible for a HARP loan. They extended the deadline of the program late in 2016 to permit applications for HARP relief until 30 September 2017.
To obtain a HARP loan before the end date, applicants should meet the qualifications listed below:
1. The Freddie Mac and Fannie Mae programs, which are government-backed, should own original mortgages. To determine if their mortgages qualify, homeowners can refer to the Freddie Mac and Fannie Mae websites.
2. Homeowner’s payments on their existing mortgages should be current. They cannot commit 30-day late payments six months before and it must not be more than one for the past year before the date of application.
3. To qualify, their mortgages should have been originated by Freddie Mac and Fannie Mae on or before 31 May 2009.
4. These homeowners will be eligible if their Loan-to-Value (LTV) ratio has surpassed 80%. Check out the free LTV calculator that Fannie Mae provided. For those residents who are considering of refinancing into a fixed-rate mortgage, it doesn’t have a maximum LTV limit. On the other hand, the LTV has capped over 105 percent for the new adjustable-rate mortgage.
5. The eligible home should either be the applicant’s investment property of around one to four units, their primary residence or a one-unit second home.
Underwater homeowners must remember that the HARP program will soon end and they probably won’t add any more extensions after September 2017. As soon as they have determined if they are qualified, they should start the application process.