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 15th.
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 :