HARP is a loan refinance program that is part of an effort called Making Home Affordable (MHA) by the Departments of the Treasury and Housing and Urban Development (HUD). It is designed to aid homeowners current on their mortgage but who are unable to refinance because the value of their property has fallen below the balance of their loan. Home Affordable Refinance Program (HARP) details for the Cherry Hill area is offered below.
Home Affordable Refinance Program (HARP) Details For The Cherry Hill Area
HARP is an important alternative for homeowners who would have no other refinance option or who may otherwise run the risk of foreclosure. It not only provides the means to refinance at reduced interest rates but also to remove mortgage insurance. These two changes could dramatically lower monthly mortgage payments. There are closing fees involved which differ from lender to lender. Most fees can be rolled into the loan to reduce up-front money required for the closing. HARP is an important program that has already helped many homeowners.
HARP Qualification Criteria
Those interested in HARP must first meet a few introductory guidelines. This is for informational use only and does not on any level imply approval for a mortgage.
- You must NOT be behind on your mortgage.
- You must have made payments on time during the last 12 months.
- Your loan must be guaranteed by Fannie Mae or Freddie Mac. Note that this is different from the name of the company that services your mortgage.
- The mortgage must have been bought by Fannie Mae or Freddie Mac on or before May 31, 2009.
- The mortgage company performing the refinance must be approved by Fannie Mae or Freddie Mac.
- Your loan balance must be more than 80 percent but under 125 percent of the market price of the property.
- You must complete the process before December 31, 2013.
Getting Started with HARP
If you can not refinance with normal means and would like to consider the HARP alternative, there are a few things that you should start off with. You should first determine whether your existing loan is guaranteed by Fannie Mae or Freddie Mac and if so, if it originated before the May 31, 2009 cut off. Contact the mortgage company servicing your mortgage to get this information. Next find a company approved by Fannie Mae or Freddie Mac for the refinance. Depending on your loan type, you may not need not use the existing mortgage company, although you may do so if they are an approved company. You will be required to fill out a formal loan application and go through the approval process. After the mortgage company reviews the your financial paperwork, the details of the current mortgage, and the property information, they will let you know whether the loan is approved.