Guidelines On Home Affordable Refinance Program In California

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Guidelines On Home Affordable Refinance Program In California

This BLOG On Guidelines On Home Affordable Refinance Program In California Was UPDATED On June 27th, 2018

How Can I Qualify For Home Affordable Refinance Program In California?

  • The Home Affordable Refinance Program in California as well as the rest of the country was established back in 2009 to assist homeowners in California and the rest of the country to refinance their California homes
  • Homeowners benefit where their mortgage balance was higher than the value of their California property or properties
  • The purpose and mission of the Home Affordable Refinance Program in California and the rest of the United States was to have California homeowners with upside down mortgage loans, or mortgage loans underwater, to be able to refinance their home loans at lower interest rates
  • By doing so, they can avoid foreclosure during the midst of the nation’s biggest housing and mortgage crisis ever recorded in the history of the United States

What Is The Home Affordable Refinance Program In California?

HARP stands for the Home Affordable Refinance Program.

  • The Home Affordable Refinance Program in California also is known as the following:
    • Obama Government Refinance Program
    • Fannie Mae DU REFI PLUS
    • Freddie Mac Open Access Mortgage Program
    • Refinance Mortgage Loans for Underwater Home Mortgages
    • Upside Down Refinance Mortgage Loans

History Of The Home Affordable Refinance Program

The current HARP program is called HARP 2.0.

  • HARP 2.0 replaced HARP 1.0
  • With HARP 1.0, the maximum homeowner’s loan to value could not exceed 125% LTV
  • Many homeowners with upside down mortgage loans had loan to values higher than 125% LTV
  • So it disqualified millions of homeowners with upside down mortgages
  • Due to this fact, the HARP 2.0 was born

HARP 2.0

The introduction of HARP 2.0 was an instant hit. Millions of homeowners with upside down mortgage loans took advantage of it and to this day, it is still extremely popular.

Here are the basic eligibility criteria of the HARP 2.0:

  • Current mortgage loan must be owned and/or serviced by Fannie Mae or Freddie Mac
  • Portfolio loans does not count
  • Current mortgage loan must have closed and funded prior to May 2009
  • A maximum of one 30 day late mortgage payment is allowed
  • Need to have been current on mortgage payments for the past six months

Is Mortgage Loan Owned By Fannie Mae And/Or Freddie Mac?

In order to qualify for a HARP 2.0 mortgage loan, homeowners current mortgage loan needs to be owned and/or serviced by Fannie Mae or Freddie Mac prior to May 2009.

  • Click on this link, FANNIE MAE , to see if current mortgage is owned by Fannie Mae
  • Click on this link, FREDDIE MAC , to see if current mortgage loan is owned by Freddie Mac

Homeowners also need to keep in mind that the even if their current mortgage loan is owned by a bank where they make their monthly mortgage payments to, the actual loan can still be owned or backed by Fannie Mae and/or Freddie Mac. Therefore, they could still be eligible for the HARP program.  There are no limit on the loan to value with the HARP 2.0. The Home Affordable Refinance Program in California has been extended until December 21st, 2018.

Qualifying For Mortgage With California Direct Lender With No Overlays

Gustan Cho Associates Mortgage Group has a national reputation for being able to do loans other mortgage companies cannot. This is due to not having any lender overlays on government and conventional loans. We also have alternative financing loan programs like non-qm loans and bank statement loans for self employed borrowers. No waiting period after housing event such as foreclosure, short sale, deed in lieu. No income tax returns required on bank statement mortgage loans for self employed borrowers. 24 months of bank deposits is averaged to determine monthly income. No loan limits on non-qm and bank statement loans. No private mortgage insurance required. 10% to 20% down payment is required on non-qm and bank statement loans. Amount of down payment depends on borrowers credit scores. Please call Gustan Cho Associates at 262-716-8151 or text us for faster response.

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