Home Affordable Refinance Program

Home Affordable Refinance Program

The Home Affordable Refinance Program (HARP) is a federal home loan program that was designed to help homeowners refinance their mortgages. With HARP loans, borrowers can take advantage of current low rates, even if they have little equity built up in the home or are having trouble making payments. This loan option is often known as the "Obama Mortgage," since it was created by the Obama Administration.

If you are up to date on your mortgage payments, yet you cannot get traditional refinancing because the value of your home has dropped, you may be eligible for the HARP program. Many times, the only way homeowners can refinance on a home that has dropped in value is through HARP.

Home Affordable Refinance Program

Qualify for HARP

If the following is true, you can be eligible to receive financing under the Home Affordable Refinancing Program:

  • You have not used the HARP program to refinance the home before.
  • You currently have a mortgage with no late payments made in the previous 6 months, and have no more than one late payment in the last year.
  • Your mortgage is insured by Fannie Mae or Freddie Mac.
  • You closed your mortgage on May 31, 2009 or before.
Qualify for HARP

Benefits of HARP Refinance

  • Homeowners with a second mortgage may qualify.
  • There is an unlimited LTV (loan-to-value) ratio.
  • Homeowners underwater on their mortgage loans can benefit from refinancing.
  • No mortgage insurance is needed under HARP, unless required by your current mortgage which in this case it will remain the same.
  • Homeowners with large mortgages, in the 6-8% range, will get the most out of HARP refinancing
Benefits of HARP Refinance

Harp Closing Costs

As with essentially all other mortgage loan products, the money a homeowner may borrow compared to the value of the property determines the interest rate of the refinance. The borrower’s credit will also be a deciding factor.

It is possible to roll the closing costs into the new loan, but there are limitations. Fannie Mae puts a cap at 4% of the current loan amount. Freddie Mac allows up to 5% of the total amount or $5,000, whichever one comes first. Any amount that exceeds these limits must be covered by the borrower in cash.

Harp Closing Costs

Apply for a HARP Refinance

It isn’t necessary to obtain a HARP refinance with the same lender who gave you the original loan. While your mortgage servicer may participate in HARP, not all lenders do. The cost of the Home Affordable Refinance Program will differ by lender. It’s important to compare rates and fees to ensure that you get the best terms on your refinance.

When will the HARP Program End?

The HARP program is set to run until December 31, 2014, yet Congress is considering putting out a HARP 3.0, which will be a third version of the HARP program. HARP 3.0 is said to offer increased opportunities for eligibility and to be extended to mortgages that are not backed by Freddie Mac or Fannie May. The new HARP program will also feature looser qualification guidelines, and those who have used a HARP refinance to get a new one.

When Will the HARP Program End

For more information on our HARP program, call US Mortgage Lenders today!855-751-6422

contact us today APPLY ONLINE