HARP Loan Limits Removed

The Federal Home Finance Agency (FHFA) recently made changes to the HARP (Home Affordable Refinance Program) that will help homeowners who are current on their mortgage and wish to take advantage of lower interest rates by re-financing but have been unable to do so due to being up-side-down in their mortgage.

The extended program – now available until December 31, 2013 – removes the maximum LTV (loan to value) ratio limit on loans secured by fixed rate mortgages with terms of up to 30 years. That means that if you owe more on your home than it would currently appraise for, you would be eligible under this program to re-finance your home regardless of the value established by the appraisal. But there are a couple of requirements:

  • the borrower must have a loan secured through either Fannie Mae or Freddie Mac,
  • the borrower must be current on their loan and not been delinquent in the most recent 6 month period,
  • the borrower must not have had more than one 30-day delinquency in months 7 through 12, and
  • the borrower must receive a benefit of either a reduced monthly mortgage payment (principal and interest) or a more stable product – such as changing from an adjusted rate mortgage to a fixed rate loan.

To see if your loan is secured by Fannie Mae or Freddie Mac, check out the following websites: Freddie Mac or Fannie Mae. If your loan is with either, contact your mortgage lender for further information.

For more information on the new guidelines and requirements: Fannie Mae website

Posted In Blogroll, Real Estate News

Comments are closed.