Home Affordable Refinance Program: 2015 UPDATE
The government has been talking about launching the new HARP 3 programs since last year. HARP 3, also known as the Home Affordable Refinance Program, was the talk of the mortgage finance industry rumors had it that it was supposed to be launched this spring. What ever happened to HARP 3?
What is the Home Affordable Refinance Program?
Over 2 million mortgage loan borrowers have benefited from the HARP 2 program, which is also known as the Home Affordable Refinance Program. The HARP 2 is backed by Fannie Mae and Freddie Mac and the main reason for this mortgage program was to rescue homeowners with upside down mortgages, also known as mortgage loans under water – which means that your mortgage loan is higher than the value of your home.
When did the Home Affordable Refinance Program start?
The HARP 2 program began in mid 2009. The HARP 3 program is similar to the HARP 2 program but would benefit homeowners who did not qualify for the HARP 2 program. For a homeowner to qualify for a HARP 2 program, their mortgage loans had to be owned by Fannie Mae or Freddie Mac prior to June 2009. If the mortgage loan was not a Fannie Mae or Freddie Mac loan, the homeowner did not qualify.
So Who Can Benefit from the Home Affordable Refinance Program 3?
The proposed new Home Affordable Refinance Program 3 would benefit more than a million homeowners whose mortgage loans are not Fannie Mae or Freddie Mac loans and whose mortgage loans are higher than the value of their homes.
For a homeowner to qualify for the new proposed HARP 3 mortgage program, they must not have any late payments for the past 12 months and their mortgage payments need to be current. There are over a million homeowners who did not qualify for the HARP 2 mortgage program because their mortgage loans were not owned by Fannie Mae or Freddie Mac. These are the people that would be eligible for the new HARP 3 mortgage loan program once it is launched.
When to Expect HARP 3?
For those homeowners that took advantage of the HARP 2 program, there is rumors that the government is going to extend the HARP program beyond the 2013 expiration date and would allow those homeowners who took advantage of the HARP 2 mortgage program to RE HARP.
By re-harping, a homeowner who had a HARP 2 mortgage loan before can qualify to refinance their homes again under the HARP program in order to take advantage of lower mortgage rates. Under the current HARP guidelines, those who took advantage of the Home Affordable Refinancing Program once before cannot take advantage of it again.
For those homeowners who did not qualify for the HARP 2 mortgage program or are interested in the proposed new HARP 3 program, contact me at www.gustancho.com .
2015 UPDATE ON HARP 3
As of today, May 3, 2015, the HARP 3 has not been launched yet and there is no word on when, if ever, that HARP 3 will ever be launched. Many mortgage professionals as well as homeowners who do not qualify for the HARP 2 have been waiting for the HARP 3 to be launched but to no avail. Stay tuned and we will keep you post either on this blog post or a new blog post on www.gustancho.com.
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