The Home Affordable Refinance Program or
the HARP refinance loan program is the federal program made by the Federal
Housing Finance Agency on May 2009 to assist the eligible loan borrowers whose
houses have deteriorated the cost in order to take the advantage of the less
interest rate. The new home affordable refinance program has assisted a number of homeowners with the underwater homes in
order to refinance their homes.
Some
Of The Best Aspects Of This Program Are:
- More lenient
underwriting
- Lower closing
costs
- No appraisal
is needed
- The applicant
can get the similar low mortgage rate which the traditional loans usually
qualify for. It includes: type of property, adjustments to the credit
score etc.
- You don’t need
any mortgage insurance to qualify for this mortgage loan.
In this type of refinancing program, the
lenders approve the refinancing of the homes very rarely with less than 20% of
the equity. It means, in case the total value of your home is less than that
amount which you have owed to the lender, then you will not be qualified for
the loan amount if the interest rate falls.
When Can
You Qualify For Making Home Affordable Program?
In order to be eligible for the HomeAffordable Refinance Program, the mortgage needs to be guaranteed or owned by
Freddie Mac or Fannie Mae. At the same time, you have to meet with the
following criteria. Such as:
- You
should not have an FHA, USDA or VA loan
- You
have to be current on the mortgage payment
- You
should not be late for the mortgage payment.
- You
have to prove that you are capable of paying the new payments for the
refinance mortgage.
- The
mortgage amount should not be greater than 125% of the present value of
your home.
No comments:
Post a Comment