While I view myself as a reliable source of information for all things real estate, I know I need to leave the mortgage and lending end of this business to the experts. Dan Green over at The Mortgage Reports is one of the most highly respected lenders out there. His post yesterday explains the new HARP/Home Affordable Refinance Program guidelines (announced by the government yesterday) in terms clear enough for all of us to understand.
The good news? Many more people now qualify for this refinance program, even if you are under water on your home. Here’s an excerpt:
If you’re underwater on your conforming, conventional mortgage, you may be eligible to refinance without paying down principal and without having to pay mortgage insurance.
Here is the details of the government’s new 2011 HARP refinance program.
What Is HARP?
HARP was started in April 2009. It goes by several names. The government calls it HARP, as in Home Affordable Refinance Program.
The program is also known as the Making Home Affordable plan, the Obama Refi plan, and Relief Refinance.
In order to be eligible for the HARP refinance program :
- Your loan must be backed by Fannie Mae or Freddie Mac.
- Your current mortgage must have a securitization date prior to June 1, 2009
If you meet these two criteria, you may be HARP-eligible. If your mortgage is FHA, USDA or a jumbo mortgage, you are not HARP-eligible.
According to Dan, the program is “meant to give homeowners who are current on their mortgages, and who have lost home equity, a chance to refinance at today’s low mortgage rates.” Click here to ask me questions about the program, or to get connected with Dan for answers.