Home Affordable Refinance Program Guidelines Review
The home affordable refinance program, also called the HARP program, is a program that allows homeowners to refinance when it is not possible to do so in other ways because of the housing market decline, as long as the homeowner meets the criteria for the program. This is a type of mortgage assistance program so that you can make your payments more affordable, and get the help you need at a time when your home value has dropped. The home affordable refinance program has a number of criteria and eligibility guidelines that must be met to participate in the program.
Mortgage refinance no closing costs is not the goal of anyone who participates in the HARP program, affordable lower payments are the desired result. There are normally refinancing fees and other costs involved. To be eligible for the home affordable refinance program you must have a Fannie Mae or Freddie Mac owned or guaranteed mortgage loan. If your loan is through the VA, FHA, or USDA you are not eligible for the program. Another factor is your payment history, and you must be current on your loan payments and can not have made a payment more than 30 days past the due date within the prior 365 days. This program does not provide mortgage loans with bad credit, but helps homeowners stay in their homes by making the monthly payments more affordable through refinancing.
Another requirement for the home affordable refinance program is that you must owe more than the current value of your home, but your mortgage balance can not be more than 125% of the home’s current market value. Many private mortgage insurance companies are in favor of the HARP program, and may be able to help home buyers who have less than 20% as a down payment. To meet the eligibility requirements for the program you must be able to make the new mortgage payments, and these payments must improve your loan stability and your ability to make the required payments.