HARP Loans

What is a HARP Loan?

• HARP  is the abbreviation for Home Affordable Refinance Program
• HARP is a refinance program for homeowners who owe more on their house than its current appraised value – commonly referred to as  “upside down” or “under water”.
• HARP Loans are generally referred to as the “bail out” program for a home owner who, while in a difficult situation, has still made their payments on time.
• HARP Loans will generally mandate that any 2^nd mortgage cannot stand in the way of your HARP Loan and must re-subordinate back into a second lien position on your home.
• HARP Loans are eligible on FNMA or FREDDIE MAC loans that were originated prior to June of 2009.
• Eligibility requirements specify that you cannot have any 30 day late payments in the last 6 months and only one 30 day late payment in the last 12 months.

What Are the Benefits of a HARP Loan?

• HARP refinance Loans allow borrowers who would normally be shut out of the refinance market access to today’s lower interest rates.  (Homeowners who owe more on their house than it is currently worth would not normally qualify for refinancing)
• HARP Loans require less documentation to get approved for the loan.
• HARP Loans allow homeowners access to refinance without an appraisal.
• HARP Refinancing Loans can potentially result in lower monthly payments.
• Refinancing from a higher interest rate to a lower one can speed up the process of getting the loan back above water – eventually leading to a normal lending situation where the Value of the Property is worth more than the outstanding loan balance.
• Reducing a homeowners interest rate can potentially save them thousands of dollars over the life of the loan and help homeowners get back above water in their home.

We have a long history of helping homeowners that are underwater on their home mortgages.  Give us a call to set up a free consultation to discuss whether a HARP Loan is right for you!