HARP (Home Affordable Refinance Program) began in April 2009. You may have heard to it referred to as the Making Home Affordable Program, the Obama Refinance Plan or Relief Refinance Program.
You are eligible for a HARP refinance if:
- Your current loan is owned/insured by Fannie Mae or Freddie Mac.
- Your current loan was purchased/insured by Fannie Mae or Freddie Mac prior to June 1, 2009 (this means your current loan probably had to close by May 1, 2009 if not sooner)
- You are current on your loan
You can check if Fannie Mae or Freddie Mac own/insure your loan clicking the following links:
Fannie Mae Loan Lookup
Freddie Mac Loan Lookup
The recent upgrade to HARP 2.0, has removed the existing restrictions on underwater homeowners. Previously, you were restricted to 125% financing (based on your homes value). HARP 2.0 now has NO restrictions.
Lets clear up a few misconceptions:
1. You do not have to work with your existing bank on a HARP loan.
2. You can do a HARP refinance even if you currently pay Monthly Private Mortgage Insurance (PMI).
3. You can do a HARP refinance on Second Homes, Investement Properties, or your Primary Residence.
4. You cannot consolidate mortgages (ie. Payoff a 1st and 2nd mortgage). You can only refinance your 1st mortgage to payoff the oustanding balance.
5. Interest rates will be comparable to a normal refinance, and in many cases better because the require Fannie Mae and Freddie Mac Loan Level Price Adjustments (LLPAs) are capped for HARP refinance.
