HARP and FHA Streamline

HARP And FHA Streamline Refinance Mortgage Guidelines

Gustan Cho Associates are mortgage brokers licensed in 48 states

This BLOG On HARP And FHA Streamline Refinance Mortgage Guidelines Was UPDATED On October 25th, 2018

What are HARP and FHA streamlining mortgage refinancing guidelines

Homeowners have a home whose value is lower than the mortgage balance amount may be eligible for a HARP.

Home Affordable Refinance Program,  streamline refinance loan to lower current interest rate and lower monthly mortgage payments.

  • Homeowners with an FHA Loan with a higher interest rate may be eligible for an FHA streamline refinance loan with a lower interest rate where they can lower their monthly payment
  • Both the HARP and FHA streamline refinance programs can offer great valuable benefits to the homeowner such as reducing the borrower’s monthly payments and saving them money by rapidly increasing their equity in their homes
  • HARP and FHA streamline refinance loans are a great route to take for homeowners who have higher interest rates

In this article, we will discuss and cover HARP And FHA Streamline Refinance Mortgage Guidelines.

HARP: Home Affordable Refinance Program

HARP, The Home Affordable Refinance Program, has been a Godsend for homeowners who have fallen victims of the real estate market crash of 2008.

  • HARP and FHA Streamline Refinance programs are somewhat similar
  • Except with HARP, this loan program helps homeowners with loans that have a balance that is higher than the value of their home
  • The commonly used term for a home that has a higher mortgage balance than the market value is known as having a home that is UNDERWATER
  • Homeowners with homes underwater would not have the opportunity to refinance their home loans if it were not for the HARP program
  • The Home Affordable Refinance Program now makes homeowners who have underwater mortgages that are owned and/or serviced by Freddie Mac and/or Fannie Mae possible to do a refinance with no appraisal, no income doc streamline conventional refinance

The main purpose to refinance underwater home loans is to save money by taking advantage of lower interest rates, thus, reducing their monthly mortgage payment.

HARP And FHA Streamline: FHA Streamline Refinance Loans

FHA Streamline Refinance Loans makes it possible for homeowners to refinance their current mortgage loans with short cuts so they are able to close on their FHA Streamline Refinance loans with less documentation which makes the mortgage loan approval process much quicker.

  • FHA Streamline Refinance mortgage loan borrowers do not need to provide income verification, employment verification, credit scores,  or a current appraisal on their home
  • To qualify for both the HARP and FHA Streamline Refinance Loans, mortgage lenders require that you cannot have more than one 30-day late mortgage payment history and need to be current for the past six month
  • HARP and FHA Streamline refinance loans are similar
  • The exception with HARP, borrowers need to owe more on their loan balance

If the borrower had a prior HARP refinance loan, they will not qualify for another HARP.

FHA Streamline Refinance Mortgage

What does FHA Streamline mean Refinancing your mortgage

A mortgage borrower can do either a conventional or FHA streamline refinance loan with HARP as long as the mortgage loan is owned and/or serviced by Fannie Mae or Freddie Mac.

To qualify for an FHA Streamline Refinance Loan, the borrower needs to currently have an existing FHA insured mortgage loan in order to qualify. Homeowners who need to consider refinancing their current mortgage with a direct lender with no lender overlays on government and conventional loans can contact us at Gustan Cho Associates at 800-900-8569 or text us for faster response. Or email us at gcho@gustancho.com. We are available 7 days a week, evenings, weekends, and holidays.