The Home Affordable Refinance Program Extended For Another Year?
Good news for homeowners who have mortgage loans that are higher than the value of their homes. The Federal Housing Finance Agency, also known as the FHFA, has announced that Fannie Mae and Freddie Mac to extend the Home Affordable Refinance Program, also known as the HARP mortgage loan program, until December 31, 2015. The current Home Affordable Refinance Program was set to expire December 31, 2013 but the Home Affordable Refinance Program Extended for another year.
Many Homeowners Do Not Know The Home Affordable Refinance Program Extended
To date, over 2 million homeowners have taken the advantage of the Home Affordable Refinance Program. There are some 14 million homeowners that could take advantage of the HARP mortgage loan program in the next two years. The Home Affordable Refinance program has been created to allow mortgage loan borrowers whose mortgage loan is higher than the value of their home due to the housing market and credit collapse of 2008. These homeowners are often referred as underwater homeowners.
How Does The Home Affordable Refinance Program Work?
Many underwater homeowners have walked away from their homes and have turned in the keys to their mortgage lenders for a deed in lieu of foreclosure. Yet millions of underwater homeowners have stuck it out and are currently paying their mortgages and are stuck in their current homes at high interest rates. By extending the Home Affordable Refinance Program, it continues to provide current home owners benefits and opportunities to refinance their current underwater mortgages and reducing the risk for Fannie Mae, Freddie Mac, and the taxpayers because it reduces the risks of foreclosures.
Home Affordable Refinance Program Requirements
In order to qualify for a Home Affordable Refinance Program mortgage loan, the mortgage loan borrower must meet the following mortgage lending criteria:
- The current mortgage loan must be a Fannie Mae or Freddie Mac owned or guaranteed mortgage loan.
- The current mortgage mortgage loan must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009. Those mortgage loans that are not Fannie Mae or Freddie Mac mortgage loans does not qualify at the present time. There is talk about the Home Affordable Refinance Program III that will be be launched soon. HARP III will make other underwater homeowners who do not have Fannie Mae or Freddie Mac mortgage loans to qualify.
- The current home mortgage loan can not have been refinanced under the Home Affordable Refinance Program previously unless it was a Fannie Mae or Freddie Mac mortgage home loan that was refinanced under the Home Affordable Refinance Program from March-May, 2009.
- A minimum of an 80% loan to value or greater.
- The homeowner must have no late payments on their home mortgage loan in the past prior 12 months and their mortgage payments need to be current and in good standing with their current mortgage lender.
If you are an underwater homeowner and have questions on the Home Affordable Refinance Program extended until the end of 2016, please contact me at 262-716-8151 www.gustancho.com .
2015 Update On The Home Affordable Refinance Program Extended
Gustan Cho Associates has acquired Hard Money Capital Group, www.hardmoneycapitalgroup.com, and Private Money Capital Group, www.privatemoneycapitalgroup.com. If you need a fix and flip rehab loan or bridge financing, visit Hard Money Capital Group at www.hardmoneycapitalgroup.com or if you are an investor and are interested in investing in private money loans or hard money loans secured by real estate, visit Private Money Capital Group at www.privatemoneycapitalgroup.com.
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Related> Home Affordable Refinance Program: HARP