HARP - Home Affordable Refinance Program
HASP - Homeowner Affordability and Stability Plan

HARP - Home Affordable Refinance Program

The Home Affordable Refinance Program (HARP) has been extended until December 31, 2013.

Established in 2009, for Fannie Mae and Freddie Mac, the Home Affordable Refinance Program provides an option for homeowners to refinance “Under Water Mortgages”. A HARP Refinance addresses situations where the homeowner’s property value has fallen causing them to no longer to qualify under traditional underwriting criteria. Homeowners with a loan owned by Freddie Mac or Fannie Mae have the opportunity to refinance with any participating lender.

Am I eligible?

To be eligible, you must have a mortgage owned or guaranteed by Fannie Mae or Freddie Mac, sold to those agencies on or before May 31, 2009. The current loan-to-value ratio on the mortgage must be greater than 80 percent. Having a mortgage that was previously refinanced under the program disqualifies you from the program.

The following criteria must be met to qualify for the Home Affordable Refinance Program:

• You must live in the home being refinanced
• A HARP refinance only applies to Fannie Mae or Freddie Mac mortgages
• The homeowner must be able to afford the new lower payment
• The current mortgage must be up to date with no late payments in the past twelve months
• Payments on the new loan must be more affordable or more stable than on the existing loan
• The maximum Loan to Value (LTV) cap has been removed on home owners looking to refinance in to a fixed rate mortgage
• However for homeowners looking to refinance in to an adjustable rate mortgage the maximum LTV is set at 105%
• The appraisal process has been streamlined; in cases where an Automated value can be determined an appraisal would not be required

How do I take advantage of HARP?

According to the Federal Housing Finance Agency, the first step borrowers should take is to see whether their mortgages are owned by Fannie Mae or Freddie Mac. If so, borrowers should contact lenders that offer HARP refinances.

We are a participating lender and can determine if your loan is owned by Fannie Mae or Freddie Mac and can further evaluate your eligibility. Please contact us today for more information.

HASP - Homeowner Affordability and Stability Plan

The HASP (Home Affordability and Stability Plan) also known as "The Making Home Affordable" plan is a far-reaching program created to assist home owners with their current mortgages in two ways:

• A Refinance Program
• A Loan Modification Program

Here are the differences between these two programs and how they will affect you:

Loans That Qualify for the Refinance Program:

Under the refinance program guidelines your primary residence, vacation or 2nd home, and investment or rental homes will qualify even if you have little or no equity. You will not be required to have Private Mortgage Insurance in excess of what is already in place. This is a great opportunity to lower your monthly mortgage expense.

You must have excellent credit to qualify for this program, however, there is no requirement to document your income or your assets. The HASP refinance program will reward those who have continued to make their mortgage payments on time by allowing them to refinance their mortgages with current loan-to-value ratios up to 105%.

Additionally, there is no appraisal required if your property’s value can be identified through an automated evaluation method. Not all properties will work with these systems, however, as sometimes there is insufficient data to evaluate. Other times the data being evaluated is not accurate, i.e. not reflecting a room addition, other major remodels, or upgrades. If the free automated evaluation process does not provide us with the value needed to complete your refinance, then you will have the option of paying for a full appraisal.

Loans That Qualify for the Loan Modification Program:

If you have suffered a financial hardship and have subsequently fallen behind with your mortgage payments, this part of the program will help by lowering the monthly principal and interest payments on the mortgage until you can afford them.

The loan modification program is available only for loans that secure your primary residence. These are the ONLY loans that will qualify for this program. In some instances, you may be eligible for both of the programs. There are a series of steps that will help make "your home affordable", reducing at-risk borrowers’ monthly mortgage payments to as little as 31% of monthly income - starting with lowering your interest rate, then subsidizing your mortgage payments, extending the term of your loan for up to 40 years and in some instances forbearing or even forgiving a portion of the loan altogether.

Contact us today to see if your loan qualifies for the HASP Home Affordability and Stability Plan.