This is a program that could allow for you to refinance your home even if you are currently not in the position to refinance.
Freddie Mac and Fannie Mae announced in late October 2011 the expansion of their Home Affordability Modification Program also called the “HARP Phase 2” program. The main objective is to assist homeowners who are currently “underwater” and owe more than they are worth. The changes from HARP Phase 1 to HARP Phase 2 are expected to take affect during the month of March 2012. Freddie Mac estimates an implementation date of 3/15/2012; Fannie Mae has not published a date yet.
Eligibility Criteria for HARP Phase 2 loans are as follows:
- The existing mortgage must be owned/guaranteed by Freddie Mac or Fannie Mae
- The existing mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009
- The current loan to value (LTV) ratio must be greater than 80%;
- When refinancing from/to a fixed rate there is no LTV limit
- The borrower must be current on the mortgage, with no late payments in the previous six months and no more than one late payment in the past twelve months
- The existing mortgage cannot have been refinanced under the HARP program previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May 2009
It is difficult to project the number of mortgages that may be refinanced under the enhancements to HARP.
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