Your home is upside down or under water (you owe more on it than it is worth) and you still want to keep it through affordable payments (refinancing), HARP can be the right move to do so. Before I tell you about your refinancing options, let me explain what actually HARP is.
What is HARP 2.0?
HARP 2.0 or Home Affordable Refinance Program just came out in Dec 2010. The program was designed to allow home owners refinance an upside down, under water or near under water home at a low interest rate and thus to help them keep it with them. Currently, lower interest rate is about 4.25%.
Qualification Criterion for HARP?
The next question that you would like me to answer is definitely regarding HARP Qualification Criteria. Following are the five points that help you know whether you qualify for this program or not:
- This program is for any Freddie Mac or Fannie Mae loan qualifiers if one originally purchased or refinanced their mortgage on a conventional loan (prior to June 1st, 2009), most likely it is backed by Freddie or Fannie. To see if your loan is a Freddie Mac or Fannie Mae, please click the links above.
- How upside down or underwater your home is not a problem to qualify for this refinance program. If you fulfill the basic requirements, you’re eligible to apply.
- You should not be having any late mortgage payments in last 6 months and can have only one late mortgage payment in last 12 months (so keep up your payments and when you fulfill this criterion, call your lender).
- No appraisal or proof of income is required to qualify. Closing costs are low and can be financed into the loan or in some cases the lender will cover the cost.
- This program ends by Dec 2014, but rates are going up so act now if you can.
Be patient with your lender as they are very busy right now doing a lot of HARPs for customers.
HARP 3.0, the Good News!
HARP 3.0 is coming soon for anyone who does not have a Freddie Mac or Fannie Mae loan, so all non-conforming loan will be included soon and everyone should be able to take advantage of this program. All criteria should be the same, but stay tuned and we will let you know when they roll that one out. Please let your friends know and feel free to call me @ 208-724-4661 for any clarification.