The Home Affordable Program is designed to assist those homeowners who are not able to refinance due to drastic reductions in valuation due to the economic and housing crisis. The program allows borrowers to refinance up to approximately 105% loan to value their current first trust deed or first mortgage only.
With many homeowners facing difficulties in refinancing due to drastically reduced home values, this program offers many of those people an option to refinance and lowers their payments in many cases.
While there are some restrictions to this Fannie Mae or Freddie Mac Program, it at least gives some hope to those seeking assistance. Lenders or brokers must follow guidelines including pricing limits set forth by these agencies.
Important questions that the borrower needs to address are the following:
1. Are they the owner of a 1 to 4 unit property?
2. For Fannie Mae, is thier loan guaranteed or owned by Fannie Mae. Freddie Mac has their own separate program similiar to Fannies with slightly more restrictions.
3. Is their mortgage payment current with no lates of 30 days or more within the last twelve months?
4. Do they believe that the current first mortgage balance is equal to the current market value of their property?
If they can answer yes to all of these questions, they may be able to qualify for this program.
Note: At the time of this writing, lenders can only go up to the maximum conforming limit in their area. $ 417,000 is the current limit here in California. Exceptions are made in selected areas. Most important, lenders have announced that borrowers who have loans above this limit may fall under this program when they are permitted to lend up to the High Conforming Balance Limits sometime within the next 30 days.
I encourage any members who come across customers, clients, friends, or associates who may fall under this category to contact their local mortgage broker or lender.
For more information, please refer to the site listed below:
http://www.sdmortgagefinder.com/FNMA_HARP_PROGRAM_TO_105.htm
The objective of a refinance under HARP is to help borrowers get into … Can the Making Home Affordable Program help me if my loan is not approved.