Do I Qualify For a HARP Mortgage?

The Home Affordable Refinance Program, also known as HARP, was created to help homeowners who have kept current on their existing mortgage get a more affordable home loan. If you owe more on your mortgage than your home is worth or have very little equity in your home, this may be the program for you! The government has continued to purchase mortgage backed securities which, in turn, has caused rates to fall to near historic lows. The HARP program allows you to refinance into a loan with a lower monthly payment and/or shorter term even if you’re “underwater.”

Since the program first rolled out, guidelines have loosened to help more people qualify. If you were previously turned down, you’re encouraged to reapply.

To be eligible for the HARP program you must meet the following guidelines:

• Your mortgage MUST be owned or guaranteed by Fannie Mae or Freddie Mac.
• Your mortgage MUST have been sold to Fannie Mae or Freddie Mac on or before May 30, 2009.
• The mortgage CANNOT have been refinanced under HARP previously, unless it’s a Fannie Mae loan that was refinanced under HARP from March-May 2009.
• Borrowers MUST be current on their existing mortgage at the time of the refinance, with no late payments in the past six months and no more than one late payment in the past 12 months.
• You have a reasonable ability to pay the new mortgage payments.
• The refinance improves the long term affordability or stability of your loan.
• Your home is your primary residence, a 1-unit second home, or a 1-4 unit investment property.

The program is set to expire Dec.  31, 2016. Be sure to check and see if you’re eligible before time runs out.
To find out if your current mortgage is owned by Fannie Mae you can visit:
www.fanniemae.com/loanlookup.

To find out if your current mortgage is owned by Freddie Mac you can visit:
www.freddiemac.com/mymortgage.

Written by: Erin Lawson, Loan Advisor at Royal United Mortgage LLC
Published: 1/22/2015