Saturday, April 13, 2013

The Real Estate Bloggers

The Real Estate Bloggers

HARP Distressed Borrower Loans Extended For 2 More Years

Posted: 12 Apr 2013 07:26 AM PDT

harpIf you are in a home that is still underwater, you may qualify for a H.A.R.P. mortgage from the Federal Housing Finance Agency. The program that was supposed to expire at the end of the year has now been extended for 2 more years through 2015.

More than 2.2 million borrowers have used the program so far. To qualify, homeowners must be current on their payments and have loans originated before June 1, 2009.
HARP is "a useful tool for reducing risk," FHFA Acting Director Edward J. DeMarco said in a statement. "We are extending the program so more underwater borrowers can benefit from lower interest rates."
The FHFA will soon begin a marketing campaign to expand the program's reach, DeMarco said in the statement.
There may be as many as 2 million eligible borrowers who haven't taken advantage of HARP, according to analysts at Bank of America Merrill Lynch. via Bloomberg

Now with the housing market starting to recover and competition for home loans driving down rates, the lending industry is happy to write HARP loans that are backed with government guarantees.  The 2 million households that would qualify for these loans left is a huge profit center for the banks, and the politicians like having the win to talk about.

About the Home Affordable Refinance Program:


  • The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
  • The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
  • The mortgage cannot have been refinanced under HARP previously unless it is a
  • Fannie Mae loan that was refinanced under HARP from March-May, 2009.
  • The current loan-to-value (LTV) ratio must be greater than 80%.
  • The borrower must be current on the mortgage at the time of the refinance, with a good payment history in the past 12 months.

Steps Towards Refinancing:

  • Determine whether your mortgage is owned or guaranteed by Fannie Mae or Freddie Mac by visiting their respective Loan Lookup Tools.
  • Contact your current mortgage servicer or another that is approved by Fannie Mae or Freddie Mac to inquire about HARP.
  • Compare rates and costs with additional mortgage companies to ensure best refinance terms.

Important Links:


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