The HARP program for mortgage help | Pound Ridge NY Real Estate

Underwater on Your Mortgage?
HARP 2.0 is Here to Help

July 2012

According to online housing site Zillow, more than 30% of all homeowners — that’s about 16 million people — are underwater on their homes. Until this year, there wasn’t much these homeowners could do to bring their mortgages back into balance. But now, with the Home Affordable Refinance Program (HARP) loan, you may be able to refinance no matter how upside-down your mortgage is.

Homeowners who are making their mortgage payments regularly but owe more than their homes are worth are unable to take advantage of today’s historically low interest rates through traditional refinancing programs. But now, the HARP loan is providing the life preserve these responsible homeowners need. According to HUD, about 400,000 homeowners have taken advantage of the new program since it launched in April 2012.

And that’s great news: underwater homeowners, who are continuing to make payments and are trying their best to stay current on their mortgages and to hold on to their homes, now may be able to lower their interest rates, decrease their monthly payments and start turning their finances around with this government-sponsored refinancing program. For Fannie Mae and Freddie Mac, that also means fewer defaults and more payments being made consistently and on time.

HARP 2.0 offers a number of advantages to homeowners whose mortgages are held by Fannie Mae or Freddie Mac:

Appraisals may be waived
Only 620 FICO required
No LTV/CLTV restrictions on fixed-rate loans of 30 years or less

The key point here is really the “no LTV/CLTV restriction” — that means HARP II can help millions of homeowners no matter how upside-down they are on their mortgages. The previous version of the HARP loan capped LTV at 125 percent of the home’s value, leaving millions of Americans unable to take advantage of today’s low interest rates.

There are three main requirements to qualify for a HARP loan. First, your loan must be owned by either Fannie Mae or Freddie Mac. If you’re not sure, I can easily look up your loan for you and determine if you qualify. Second, your loan must have been sold to Fannie or Freddie before June 1, 2009. Third, the refinance must benefit you in one of four ways:

Reduction in your monthly principal and interest payment
Reduction in your interest rate
Reduction in your amortization term (moving from a 30-year term to 15 years)
Movement to a more stable product (i.e., interest-only to fully amortizing, ARM to fixed, etc.)

If you have a Fannie Mae- or Freddie Mac-owned loan that is underwater, or close to it, and you are hoping to find a life preserver, please contact me right away. The sooner we can meet to discuss your options, the sooner you can start getting back on track with your finances, reduce your stress and move toward more stability in your mortgage. Let me help you determine if HARP 2.0 can help you.

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Robert Paul

Robert is a realtor in Bedford NY. He has been successfully working with buyers and sellers for years. His local area of expertise includes Bedford, Pound Ridge, Armonk, Lewisboro, Chappaqua and Katonah. When you have a local real estate question please call 914-325-5758.