The new HARP government upside down/underwater mortgage refinance program will help some home owners in the Corona, Chino, Riverside, Canyon Lake, Moreno Valley, Lake Elsinore who want to keep their home and lower their interest rate and mortgage payment.
What is HARP? It’s an instrument, but in this discussion we’re talking about the Home Affordable Refinance Program, also referred to as the DU REFI Plus or Access Relief loan….or HARP 2.0 Refi Program or the Obama refinance.
The purpose of the revised or new HARP program is to help people who’s home values have dropped like a ton of bricks take advantage of today’s lower interest rates. The problem with the old HARP refinance program was it had a loan-to-value cap of 125%, many lenders limited it to 105%, and other lenders wouldn’t participate in the program at all.
HARP 2 interest rates are very low right now for eligible home owners…lock it in while you can.
It makes sense to reduce the interest rate and payment and reward upside down home owners who are current on their mortgage.
What has Changed with HARP Guidelines?
The Federal Housing Finance Agency (FHFHA) just eliminated the 125% LTV cap, among many other changes. This may result in a refi free-for-all if your current loan is owned or securitized by Fannie Mae or Freddie Mac. (act now before mortgage rates go up)
Why would mortgage lenders actually offer a refinance loan to a borrower who’s mortgage and home value is way upside down in value….like 150% – 190% LTV? Isn’t that risky? Not so risky for an approved HARP lender/broker anymore. FHFHA has stripped Fannie Mae & Freddie Mac’s ability to force the lender to ‘buy back’ the loan if the borrower defaults or goes into foreclosure (other than mortgage fraud…so don’t do that).
They (the really smart people in our government) finally realized that certain people in Corona, Chino, Riverside, Canyon Lake, Lake Elsinore, and Moreno Valley are making their mortgage payment on time for a reason! They don’t want to foreclose, strategically default, or short sale just because their home is upside down in value. So let them refinance into a lower rate!
Do You Qualify for the New HARP Upside Down Mortgage Refinance?
- Income & employment is still verified – can you qualify for your loan on paper?
- Maximum one 30 day late payment allowed in the last 12 months.
- Your loan must have been originated BEFORE 6/01/2009.
- Loan must be owned or securitized by Fannie Mae or Freddie Mac. This is not for people with FHA, VA, or USDA loans.
- Credit score low? No worries, FICO score only impacts the interest rate.
- You don’t have to be upside down to qualify for the HARP loan.
If it is, submit some info to get a HARP REFI Rate Quote
If it isn’t, we should have a come-to-Jesus meeting. OK, I’m kidding…sort of:-) There is no government program to help you at this time. If you want to consider other options, such as short selling/walking away (I short sold my home), or figure out how long it will take for your home to regain it’s lost value and get back to 100% LTV, call me @ (951) 215-6119 or contact me.
If you have 25 more more questions, read the answers to these Frequently Asked Questions (FAQ’s) about the California Home Affordable Refinance Program.
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