The most recent program is referred to as Home Affordable Refinance Program (HARP) 2.0. This program is open to borrowers whose mortgages are owned by either FNMA or Freddie Mac, which are conventional mortgage programs.
Under HARP 2.0, lenders will be able to waive the appraisal portion of the refinance and not be concerned about their loan to value (LTV). They will be able to take advantage of historically low interest rates and reduce their monthly payments.
At this time, lenders are preparing to open up this program. What you can do in the interim is figure out whether your loan will be eligible. Requirements for eligibility include:
- Your mortgage must be owned or guaranteed by Freddie Mac (check here) or Fannie Mae (check here).
- Your original loan must have closed no later than May 2009.
- Your mortgage cannot have been previously refinanced under HARP.
- Your current loan-to-value ratio must be greater than 80%.
- Borrower must be current on the mortgage at the time of the refinance, with a good payment history for the past 12 months.
Let us talk with you about your refinance options so that we can assist you to see if you will be eligible for this program when it is released in mid March.
By Lisa Green (Vice President of Loan Origination)