Good News For Underwater Homeowners

The Federal Housing Finance Agency (FHFA) recently directed Fannie May and Freddie Mac to extend the Home Affordable Refinance Program (HARP) to December 31, 2015. HARP was originally set to expire at the end of this year.

What is HARP?

HARP is a government program which was created to allow borrowers who were underwater (owing more than their home was worth) to refinance into a lower interest rate loan, therefore reducing payment and providing financial relief.

To date, over 2.2 million borrowers have taken advantage of HARP to refinance. This unique program allows borrowers with little or no equity to take advantage of the benefits of refinancing.

What are the eligibility criteria for HARP?

• Your loan must be backed by Freddie Mac or Fannie Mae
• Freddie or Fannie needs to have bought your mortgage prior to June 1, 2009
• Borrowers must be current on their mortgages for the last six months, and have no more than one late payment over the past year
• The mortgage cannot have been already refinanced through HARP in the past, unless it happens to be a Fannie Mae loan that underwent a HARP refinance between March and May 2009
• The mortgage cannot be a USDA, FHA, or Jumbo Mortgage If the California Homeowner refinances into a fixed rate mortgage, no Loan to Value (LTV) limit applies.
• However, if the new loan is an adjustable rate mortgages, the borrower’s LTV cannot exceed 105%.

These guidelines can be confusing. We can help you figure it out and find out if you are eligible to refinance your underwater home. For an overview of the HARP program, visit our site harprefinancetips.com.

You can check your eligibility or start the application process online. Still a little uncertain? You can also call us at (707) 763-6290 or (800) 619-4400 – we’ll be delighted to talk to you.