HARP Program Basics

HARP Program Basics

In 2009 the US federal government announced a financial aid program Home Affordable Refinance Program, HARP in short to help five million homeowners who are either underwater or near underwater for refinancing into a fixed loan with lower monthly payments. Last year in October, the federal government revised the whole HARP plan so many homeowners that are having problems can reap its benefits. HARP 2 is the modified form of HARP program. Loan takers have a loan-to-value ratio less than 125 percent are targeted by -0- since December 1st, 2011. Harp 2, during the initial quarter of 2012, If borrowers have a loan-to-value ratio higher than 125%, the benefit will be 0.

Click here to get today’s HARP program mortgage rates.

HARP has a lot of other names such as the Obama Refi plan, the Making Home Affordable plan, HARP Program, Relief Refinance and DU Refi plans, etc.

The main requirement to get HARP assistance is that your mortgage is backed by Freddie Mac or Fannie Mae, and was issued before 6/1/2009. But, if it is a USDA, FHA or jumbo mortgage, you don’t qualify for the HARP program.

The biggest transformations have come in the HARP 2 program. New program features are: the end of limits that make sure people who are borrowing can refinance no matter how much the value of their home has gone down, and also limits were at 125 percent before, also underwriting has been eliminated so that you do not have to have your home appraised. Fees have either been modified or abolished for shorter-term loans with the deadline to get a HARP refinance being extended to 31st Dec 2013. Getting a refinance now is much faster and smoother.

The original HARP program was hampered by problems that made it a challenge for homeowners to refinance their homes, and the new program marks a distinct departure from these issues. Only people with loan to value ratios between 80% and 125% were able to refinance. For those homeowners whose home values had fallen by 50 percent, this went against them as it made them ineligible for the program’s benefits. To know if you are HARP eligible or not, there is a Online Harp HARP Eligibility Form available for help.

Click Here for the HARP Program Eligibility Form