The Ins & Outs of HARP Refinancing
The Harp refinance program was instituted by the Obama administration in order to assist homebuyers with underwater mortgages or zero equity in their home loans. Many of these individuals are unable to qualify for conventional refinancing however the Harp program allows them to take advantage of lower rates or change from one loan type into another. You may also be able to lower your monthly payments and build equity faster.
In order to qualify for Harp refinance, the loan must be backed by either Fannie Mae or Freddie Mac. If you're not sure if your home loans backed by Fannie Mae or Freddie Mac you can visit their online site and use their search tool in order to find the have your loan.
Let's take a look at some of the qualification requirements. Individuals with VA, jumbo, USDA or FHA loans are not eligible for Harp. Applicants will need 12 months history of timely mortgage payments. The home must be your primary place of residence, an investment property or a second home. The loan also has to be closed on or before May 31, 2009.
If you are interested in Harp refinancing, organize your financial documents including your mortgage statements and income details and contact your mortgage lender in order to find out if they are an approved Harp provider. Consider getting pre-approved; Pre Approval Guide reports that homeowners who are pre-approved are more likely to receive a favorable rate.
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