Home Affordable Refinance Program

Home Affordable Refinance Program Extended For Underwater Mortgages

Gustan Cho Associates are mortgage brokers licensed in 48 states

This Article Is About Home Affordable Refinance Program Extended For Underwater Mortgages 

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 Extension Of HARPWhy Many Homeowners Do Not Know The Home Affordable Refinance Program Extended

To date, over 2 million homeowners have taken 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 to 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 homeowners 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 RequirementsWhat are 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 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 do not qualify at the present time
  • There is talk about the Home Affordable Refinance Program III that will 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
  • 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 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com.

Related> Home Affordable Refinance Program

Related> HARP: Home Affordable Refinance Program