HARP simply means Home Affordable Refinance Program. This was introduced by the American government in March 2009 to help homeowners in servicing their mortgage loans. This program was designed to see homeowners out of the critical situation they found themselves as regards value of their homes. At this time, the value of houses had gone far below what they have on their mortgage.
Homeowners could not take advantage of the low-interest rates because mortgage companies require less than or 80% loan-to-value ratio for refinancing.
Who is eligible for HARP?
Note that loan modification consulting would be required to help in the process. To qualify for this program by from the Federal Housing Finance Agency (FHFA), here are the qualifications.
- The participants in the program must be individual homeowners and not corporate bodies.
- You must have got your mortgage not later than 31st march 2009. This is for a reason that mortgages after this time is already enjoying low-interest rates.
- You must have your mortgage guaranteed or of ownership by Fredrick Mac or Fannie Mae. This one was somewhat confusing to abide by.
- You must have a loan-to-value ratio of 80% or greater at the time.
- Being current on your mortgage servicing is also a requirement. If you must have defaulted before, it should not be any in the last six months or at most once in the past one year period.
There are more other requirements you will need to meet for your refinancing to be on the HARP program. It is advisable you are registered with a loan modification certified company to be sure all necessary documentations are met
Loan servicing company
If you are going to engage in any investment especially real estate, it is highly recommended you always have reliable hands guiding you in all your moves. This will also be helpful for your HARP application.