Do You Qualify For The HARP Refinance – Sherman Oaks Homes

by Mario Acosta on November 5, 2011

in Local Topics, Market News, Mortgage And Finance

What is the HARP Program?

If you own Sherman Oaks real estate here are the details of the HARP refinance program.

On October 25th, President Obama visited Nevada, one of the hardest hit foreclosure areas in the United States, and announced changes in the HARP program to help more homeowners who are underwater on their mortgage.  Based on calculations from The Federal Housing Administration an  “estimated an additional 1 million people would qualify.  Moody’s Analytics say the figure could be as high as 1.6 million.” and potentially could help 1 in 5 Californians that are underwater on their mortgage.

The HARP Program is a mortgage refinance program especially developed for home owners whose properties have lost value in the last few years and don’t qualify for a standard refinance mortgage.  Typically, refinance banks will demand that the equity or value of your property is higher than the mortgage balance before they will approve any application for a mortgage refinance.  But like many homeowners throughout the country whose  house value has gone down during the financial crisis,  getting a standard refinance is just not possible.   Thus, the Home affordable Refinance Program (Harp) was designed for home owners facing this quandary.

When do you Qualify for the HARP Program?

To qualify for the program you must meet three basic requirements:

  1. You must be current on your mortgage and have not been over 30 days late in the last year.
  2. Your loan must have been initiated prior to May 31st, 2009
  3. Your loan  must be backed by Fannie Mae or Freddie Mac

Note that if you do qualify for a refinance under the HARP Program (Harp Refi), you still need to submit a loan application.  Further, you have to pay a refinance fee, just as if you were obtaining a refinance through other (commercial) channels.  The HARP loan will be underwritten to see if you are qualified to obtain a loan in general.  Just because you meet the criteria listed above, there is no guarantee you will be refinanced under the HARP Program if you do not qualify for a refinance in the first place.

Some of the great features of the HARP Program:

–Lower closing costs

–Generally more lenient underwriting

–Sometimes no appraisal is required

–You can get the same low mortgage rates that conventional loans qualifying for. This includes adjustments for credit score, type of property, etc.)

–If Freddie Mac owns your home mortgage, you may not be required to prove your income. NOTE: If your loan is owned by Freddie, you will have to do your refinance through your current loan servicer.

–No mortgage insurance needed (even if you owe more money than your property is worth)

–With a Fannie loan, you can include all your closing costs in the mortgage, except for a credit report fee and an appraisal fee (if required) a HARP Loan does not require cash upfront.

Contact me or visit this website , if you need more information regarding your Sherman Oaks real estate refinance.

 

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Post by Mario Acosta

Mario has written 117 articles.

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