Home Affordable Refinance In California

Gustan Cho Associates

Requirements For The Home Affordable Refinance Program In California

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 where the homeowner’s 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 and 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 Obama Government Refinance Program, Fannie Mae DU REFI PLUS, Freddie Mac Open Access Mortgage Program, Refinance Mortgage Loans for Underwater Home Mortgages, and 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 and 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:

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

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

In order to qualify for a HARP 2.0 mortgage loan, your 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 your current mortgage is owned by Fannie Mae.  Click on this link, FREDDIE MAC , to see if your current mortgage loan is owned by Freddie Mac.

You also need to keep in mind that the even if your current mortgage loan is owned by a bank where you make your monthly mortgage payments to, the actual mortgage loan can still be owned or backed by Fannie Mae and/or Freddie Mac and therefore, you could still be eligible for the HARP program.  There are no limit on the loan to value with the HARP 2.0.

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The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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