HARP: It’s Not Just a Musical Instrument
You may wonder why a financial and mortgage company is talking about something called HARP. That’s because it has nothing to do with music, but a great deal to do with making a home affordable!
HARP (also sometimes known colloquially as the president’s refinance program or Obama’s house
refinancing) stands for home affordable refinance program, and it may be just what you’re looking for if you need government help with your mortgage. Back in 2011, the Federal Housing Finance Agency revised the program so that homeowners could refinance without restrictions on current home value.
What exactly does that mean for you?
First of all, as the name says, it’s an affordable refinance program. A HARP lender is especially for people who are not behind on their mortgages—but who are unable to refinance through conventional methods because the value of their house has declined in recent years.
How can you get this mortgage help from the government? You’re eligible for HARP if you meet these conditions:
- Your mortgage must be owned/guaranteed by Freddie Mac or Fannie Mae.
- Your mortgage has to have been sold on or before May 31, 2009.
- Your mortgage cannot have been already refinanced through HARP.
- Your current LTV (loan-to-value) ration has to be above 80%.
- You have to be current on your mortgage at the time of your home affordable refinance application, and you need to have had a good payment history in the past 12 months.
