The Home Affordable Refinance Program, also known as HARP, is a federal U.S. program to refinance current mortgages. This home loan program is helpful to borrowers with little to no equity who are looking to refinancing their property. This refinance loan program is only available for buyers who previously had Fannie Mae or Freddie Mac loans. Its purpose is to help borrowers find stable and affordable home loan programs, especially for those who are struggling or lower credit.
Home Affordable Refinance Program
HARP became law after the housing bubble burst in the late 2000s as a way for prospective homeowners to have more confidence in the housing market. As an HARP-approved lender, we encourage new homeowners to take advantage of all forms of assistance that current laws offer. Buying your dream home is one of your biggest possible achievements. However, buying a house is a tremendous financial responsibility, and fees such as the down payment are critical to approval. The sooner you start saving, the higher the chances of being able to afford your desired property. HARP can help homeowners in these situations. Here are some features of HARP loans below.
Lower Monthly Payments
HARP loans are based on your current credit score and aim to reduce your estimated monthly installments (EMI). Refinancing this way generally saves money.
Lower Interest Rate
You have the option of reduced interest rates set by the U.S. Federal Reserve.
You can change your home loan program from an adjustable-rate to a fixed-rate, which will remain stable regardless of housing market conditions.
You can build the equity in your property at a faster rate and in a shorter period by opting for a short term rate.
No Appraisal Needed
The HARP program features quicker processing and less paperwork than traditional mortgage loan programs. One benefit is that you can apply without a home appraisal.
While there are certainly a great deal of benefits, there are also some important loan requirements, stated below:
- The loan must be owned by Fannie Mae or Freddie Mac.
- The mortgage must be old enough and be secured on or before the 1st of June, 2009.
- The borrower should be current on their mortgage payments, meaning no more than one late payment in last 12 months. Therefore, a good review of credit reports in necessary prior to application.
- The current loan-to-value (LTV ratio) ratio must be at least 80 percent of the previous financing under HARP.
To Apply for a HARP Refinance:
- Check whether your mortgage is Fannie Mae or Freddie Mac approved.
- Ensure your documents are filed correctly.
- Ensure you meet the qualifications.
- Contact us for further evaluation.
If you’re looking for expert mortgage professionals who can guide you in processing your loans, boosting your credit score, and choosing the right home loan program, look no further than Drew Mortgage Associates. We offer a wide array of mortgage services, assisting you beginning to end with the loan qualification program. If you’re looking for a HARP loan program, we can help you check your eligibility, apply for the loan by ensuring proper documentation and follow the approval process.