HARP REFINANCE PROGRAM EXPANDED!

HARP REFINANCE PROGRAM EXPANDED!

A change in the underwriting guidelines just made by the FHFA (Federal Housing Finance Agency) may enable more upside down homeowners to qualify for a refinance and save their homes from foreclosure!

Until this change they has placed a 125% loan-to-value CAP on the HARP (Home Affordable Refinance Program).  That meant that if the new loan could not be more than 25% over the present value of the property, the property did not qualify for a HARP refinance.

The new guidelines apply only to mortgages backed by Fannie Mae and Freddie Mac. To determine if your loan qualifies, go to:  http://www.makinghomeaffordabel.gov/get-assistance/loan-look-up/Pages/default.aspx

There are other program enhancements which include, among other things: reduction of some fees, eliminating the need for a new appraisal if FHFA has a reliable automated valuation model (AVM) estimate and extending HARP until the end of 2013.

New federal guidelines for the HARP changes should be released by November 15^th.

Basic eligibility requirements include:

•  Existing loan must be owned or guaranteed by Fannie Mae or Freddie Mac
• Existing loan must have been sold to Fannie Mae or Freddie Mac before June 1, 2009
• Existing loan may not have been refinanced under HARP previously (Except for Fannie Mae loans refinanced between March and May 2009)
• Current loan-to-value must be more than 80%
• The existing loan must be current , with no late payments in the past six months, and no more than one late payment in the past 12 months

More information is available from FHFA at :

http://www.fhfa.gov/webfiles/22721/HARP_release_102411_Final.pdf.