HARP Refinance

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Home Affordable Refinance Program (HARP)

For Homeowners that are struggling but not yet behind on their payments a HARP refinance might be the answer.  Most homeowners feel trapped because they are struggling on their home loan payments yet they are unable to obtain a traditional refinance because their home home declined so much in value that no traditional lenders will touch them.  Some homeowners may be eligible to refinance through the Home Affordable Refinance Program (HARP).  HARP is designed to assist homeowners by allowing them to obtain a new, more affordable, home loan by taking advantage of the historically low interest rates despite the loss in value of their home.

Homeowners might be eligible for HARP if they meet the following criteria:

  • 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.

Since HARP is only eligible for homeowners having Freddie Mac or Fannie Mae loans HARP will not be a viable option for all homeowners.  However, for those that might be eligible HARP is the first step in attempting to resolve the issues surrounding their home loans.

Although the Law Offices of Michael Gaddis is not a lender, Michael Gaddis is a licensed Mortgage Broker with extensive knowledge relating to HARP and would be a good source of information for any California Homeowner considering a HARP refinance.