What is The Home Affordable Refinance Program HARP

How to qualify for home affordable refinance program | things you should know about Home Affordable Refinance Program Requirements

In 2019, mortgage rescue plans continued with a new refinance program designed to help struggling homeowners who could not qualify for traditional loans to refinance due to declining property values. Unfortunately, the recent housing crisis eroded the home equity for millions of homeowners. Program Home Affordable Refinance launched new refinancing options the government made available to a large segment of borrowers. The Home Affordable Refinance Program HARP is part of the Obama mortgage plan that helps Americans to reduce their loan payments or alter your current mortgage to stay home and avoid foreclosure.

You might wonder How to qualify for home affordable refinance program? Well the Home Affordable Refinance allows the homeowner to refinance your current mortgage, provided the home is used for primary residence. The owner must be current (less than 30 days late in the past 12 months) with your current mortgage and the mortgage must be insured by one of the mortgage companies that are backed by the government (Fannie Mae or Freddie Mac). The home must have been purchased on or before January 1, 2009 to qualify. The value of the house should also have fallen causing the homeowner to not be able to refinance with conventional loans.

ARPA loan limits are set at $ 417,000, for the moment. There is a large group of Americans who owe more on their mortgage than their home value is worth after real estate values fell. Another group of Americans are not “upside down” on your mortgage, but can not refinance conventional refinancing because 80% (% most lenders use) the current value of the home and not allowed to pay the existing mortgage.

Home Affordable Refinance Program Requirements are not fast and hard. This program may finally be the solution you have been looking for many Americans. Earlier government plans like Hope for Homeowners refinance and FHA Secure were unable to help borrowers refinance average since failed to qualify due to technical problems with the loan program. FHA refinancing may still be a good option for borrowers who have credit scores below 620, but the borrower must be able to show the offsetting factors. Like conventional loans and FHA mortgage, pay stubs are required, and borrowers must be able to document that they have the ability to afford the payments on the new loan.

There is high demand of the Home Affordable Refinance Program HARP due to the advantages it offers to all of its customers.