The Obama Administration and the housing regulator, FHFA, revamped HARP to allow homeowners with loans backed by both Fannie Mae and Freddie Mac, and who are current on their mortgages to refinance their properties, no matter how much their home values have dropped, and regardless of what is owed.
A typical refinance requires the following:
- Borrower have a good credit score
- Borrower have a good credit history with paying mortgages
- Home have equity (value of home is higher than the mortgage balance)
In this day and age, when many homeowner/borrowers owe more on their mortgages than the property is worth, a typical refinance is out of the question. As there is no equity to tap into. Enter the HARP Program.
The program was invented and designed to assist homeowners who have maintained their good credit rating and history but simply can not refinance because the property value is so below the mortgage balance.
On HARP refinances, the principal mortgage balance can be drastically reduced as well as the interest rate, with principal forgiveness so that once the loan balance is forgiven, it never has to be repaid by the borrower.
In order to qualify for HARP, the loan must be as follows:
- Must be owned or guaranteed by Fannie Mae or Freddie Mac. You can call us to see if your loan is.
- The mortgage cannot be refinanced under HARP previously
- The loan to value ratio must be greater than 80%.
- The borrower mortgage must be current.
- The borrower must have reasonable ability to pay the new mortgage
These are only a few of the qualifications.
The program expires on December 31, 2013 so don’t wait. Call us today for a free, no obligation consultation.
The Law Offices of Jacqueline A. Salcines, PA, 706 S. Dixie Highway, 2nd Floor, Coral Gables, FL 33146
Telephone: 305 | 669 | 5280 or visit our website at www.salcineslaw.com
TRUST | COMMITMENT | RESULTS