HARP is a home refinance program through Making Home Affordable (MHA) by the Departments of the Treasury and Housing and Urban Development (HUD). It is designed to assist homeowners current on their mortgage but who are having issues refinancing because the price of their real estate has declined below the amount of their mortgage. Home Affordable Refinance Program (HARP) details for the MA area is offered in this blog.
Home Affordable Refinance Program (HARP) Details For The MA Area
HARP is a critical option for homeowners who may have no other refinance option or who may otherwise face foreclosure. It not only offers the means to refinance at lower interest rates but also to eliminate mortgage insurance. These two factors may dramatically lower monthly payments. There are closing fees involved which differ from lender to lender. Some costs can be rolled into the mortgage to minimize up-front cash required for the closing. HARP is a great program that has already helped many homeowners.
HARP Qualification Criteria
Individuals interested in HARP must first meet several basic criteria. This is for informational use only and does not in any way guarantee approval for a mortgage.
- You must be current on your payments.
- You must have made payments on time for the previous 12 months.
- Your mortgage must be owned by Fannie Mae or Freddie Mac. Note that this is different from the company that services your loan.
- The loan must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
- The loan company for the refinance must be approved by Fannie Mae or Freddie Mac.
- Your loan balance must be higher than 80 percent but lower than 125 percent of the market price of the property.
- You must refinance before December 31, 2013.
First Steps to Take Advantage of HARP
If you are unable to refinance with traditional methods and wish to consider the HARP alternative, there are a couple things that you should do. You must first find out whether your existing loan is owned by Fannie Mae or Freddie Mac and if so, whether it originated before the May 31, 2009 date. Contact the mortgage company servicing your loan for this information. Then locate a company authorized by Fannie Mae or Freddie Mac for the refinance. Depending on your type of mortgage, you may not be required to use the current mortgage company, although you may do so if they are an approved company. You will be asked to start a formal mortgage application which includes an underwriting process. After the lender evaluates the financial paperwork, the details of the current loan, and the property information, they will inform you of your approval status.
For additional Home Affordable Refinance Program (HARP) details for the MA area, contact Bradford Pratt at REMAX on the Charles by calling 877-481-5544 or emailing bradfordpratt@remax.net. You may also go to the official site at http://www.makinghomeaffordable.gov/.
