I get a lot of questions from past clients about HARP and using it to refinance their mortgage. There is a lot of confusion about this program, and not everyone is eligible for HARP.
I’m going to outline the basic requirements for HARP Refinance Eligibility which will show you that most of you are not eligible. It’s a great program but it’s targeted to a specific group of homeowners. If you have more questions you should contact a HARP approved lender. If you want suggestions for lenders please contact me.
First; what is HARP?
HARP stands for Home Affordable Refinance Program. It was set up by the federal government in 2011, specifically The Federal Housing Finance Agency (FHFA) and Administration to help owners of UNDERWATER homes to refinance a today’s lower interest rates. Underwater means homes that are currently valued at less than what is owed on them.
Right now in Colorado housing prices have recovered and are in fact at their all time high in most locations. This means that fewer Colorado homes are truly underwater.
1.) The current loan on your property is owned or guaranteed by Fannie Mae or Freddie Mac.
2.)At the time you apply, you are current on your mortgage payments. You can have one 30-day late payment in the past 12 months, but none within the past six months
3.)You got the mortgage BEFORE 6/1/2009. In other words you purchased your home before 6/1/2009.
4.)You haven’t already refinanced under HARP in the past few years.
5.) Your current LTV (loan to value) is greater than 80%
Additionally many lenders have added their own requirements and restrictions to these loans especially in the areas of LTV and credit score.
Interest rates are still low and home prices are up in the Denver Metro area so most of you don’t need this program, but it’s great to know that is available for those that do.
Please contact me if you would like to discuss your situation in more detail. Please click the contact button and email me or call me.