The HARP refinance program was created for homeowners that lost value in their home due to the housing bubble bursting. For millions throughout the country, the crash took not only their equity, but the hope of ever refinancing to a lower interest rate or a fixed rate mortgage loan. The government stepped in by creating the HARP loan program that requires homeowners to owe more than 80% of their homes current value. This has made it possible for families throughout the country to afford to continue living in their home.
Many Lenders Were Not Interested in Offering HARP Refinance Loans
When the HARP loan program was initially released, many lenders declined to participate or drug their feet on approving loans. Due to loan guidelines and a concern over additional scrutiny many lender declined borrower requests to complete a HARP loan. This has left many homeowners, throughout the country, believing that they cannot qualify for HARP or that it is not actually available.
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Speak With a Mortgage Banker that Specializes in HARP
If you have been turned down for a HARP loan, you should get a second opinion from a specialist. Not every mortgage lender offers the program. When you are told no, it could be because they aren’t offering the program, not because you don’t qualify. This is so common that Fannie Mae lists out participating lenders on their website.
How to Qualify for a HARP Loan
There are several criteria you need to meet in order to qualify for this mortgage program.
• Your loan needs to be owned by Fannie Mae or Freddie Mac. Your mortgage lender can look this up for you online.
• You need to be current on your mortgage. If you have been late in the past that is okay as long as you have paid on time for the past six to twelve months.
• Your current loan needs to have closed on or before May 31, 2009. If you refinanced your loan after that time frame you should speak with a mortgage banker about alternative refinance program.s
• Primary Residence. This loan program is designed for refinancing your current residence and does not work for rental properties.
• Owe more than 80% of your homes value. If you have more than 20% equity in your home you should qualify for a traditional refinance and don’t need the HARP loan program. This was designed for people that do not have equity.
Mortgage interest rates have fallen over the past several months, dropping to 4.1% for a 30 year fixed mortgage loan. If you are interested in refinancing contact a mortgage banker that specializes in HARP loans (HARP lender) and start saving today.
