HARP Mortgages in Metro Detroit
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.