By David Bremer – Shamrock Financial Corp.
Breaking News! The HARP Loan is extended another 2 years until December 31, 2015.
That’s fabulous, but what’s HARP again?
HARP is the Home Affordable Refinance Program created for homeowners that either don’t have sufficient equity for a traditional refinance or are simply under-water and owe more than their home is currently worth. Without this program, most of these homeowners couldn’t take advantage of today’s fantastically low interest rates.
So far over 2 million homeowners have refinanced through HARP. The program was due to expire at the end of 2013 but it was determined that so many more homeowners are still eligible and in need of assistance so the FHFA (Federal Housing Finance Agency) decided to go ahead and extend the program until the end of 2015. Other than extending the end date, they have made no other changes at this time.
To qualify you must meet all of the following guidelines:
- Your loan must be owned by Fannie Mae or Freddie Mac. Note that that Fannie and Freddie don’t service the loans. Most conventional loans being serviced by lenders all across the country are actually owned or guaranteed by Fannie or Freddie so there is a good chance that if you have a conventional loan, it is too.
- Your current first mortgage must have been closed and sold to Fannie or Freddie on or before May 31, 2009. Some lenders took longer than others to deliver their loans to Fannie or Freddie but if you closed before this date you could be eligible.
- If you owe less than 80% of what your home is worth then you would qualify for traditional refinancing so you aren’t eligible for HARP but if you owe more than 80% of the value and even if you owe more than your home is worth, you may be eligible for HARP refinancing.
- You must be current on your mortgage with no late payments in the last 6 months and no more than one 30 day late payment in the last 12 months.
In addition:
- You can have a second mortgage or equity line and still be eligible. The new loan will not be able to refinance out of the second mortgage but you could still refinance the first mortgage for a lower rate.
- HARP is available for owner occupied properties, second homes and even investment properties.
- If you already refinanced under HARP then you aren’t eligible to do so again.
Don’t guess whether you are eligible or not! Check with a professional mortgage loan officer. They can quickly determine if you would qualify for this program or if you may qualify for another program. There are streamlined programs for FHA, VA, USDA and other mortgage loans. Even more importantly, if you checked in the past-check again!
When HARP was first announced, many people asked about refinancing and were told they didn’t qualify. The guidelines changed some at the beginning to allow more people to qualify. Also, even after the guidelines were expanded, it took many lenders a long time to be ready to handle the loans. As a result, many individuals who checked early on in the process were told they did not qualify and haven’t checked again. It is worth a phone call to find out for sure. Check with us at Shamrock and download our FREE HARP 2.0 Toolkit, which is filled with more information on qualifying for this program.
David Bremer – With over 8 years as a loan originator, David has always served the purchase market first because that is where you EARN a customer for life. Going above and beyond to ensure his clients are comfortable with the process and have a full understanding of their options are David’s strengths. David spends his time away from work with his wife, 3 children and their extended family and friends. David may be reached at david.bremer@shamrockfinancial.com.
Cell: 978-302-0475