HARP: Distressed Arizona Homeowners to get more Help!

Distressed Arizona Homeowners to get more Help!

Click here to get a HARP refinance rate quote.

Today we got good news from the Federal Housing Finance Agency that changes to the Home Affordable Refinance Program (HARP) are coming.

When HARP was announced in 2009 it was very limited to situations where the first mortgage is no more than 105% of the current value of the home. Needless to explain the limitations with the falling home prices and help did not reach too many homeowners. Even with the present 125% Loan to Value ceiling many homeowners are still too far under water.

But very soon there will be a much stronger lifeline available to troubled homeowners and the new improved HARP Program will reach and help more borrowers.

The biggest improvements include:

• The 125 Loan To Value Ratio Ceiling for fixed-rate mortgages will be removed.
• No Appraisals (Fannie Mae and Freddie Mac will use automated valuation models where available, if it is not available you still will need a new appraisal)
• Less fees for borrowers who refinance into shorter terms, Lower Fees for other borrowers

Now you probably ask what the requirements are and who may be eligible for HARP:

• Fannie Mac or Fannie Mae must own your current Mortgage (you can check here and here)
• Your mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31st, 2009
• Your current Loan To Value Ratio must be greater than 80%
• You must be current on your present mortgage at the time of refinance, no late payments in the past six month and no more than one late payment in the past 12 months
• Your mortgage cannot have been refinanced under HARP previously – unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009

These changes and enhancements will become available as early as November 15th 2011 and are set to expire on or before December 31st, 2011.

With no LTV requirements, no appraisal and fewer loan fees, folks there is hope!

 Related articles

• US announces help for underwater homeowners (bottomline.msnbc.msn.com)
• White House to Announce Fannie/Freddie Mortgage Refinance Plan (news.firedoglake.com)
• Obama to bypass Congress on mortgages (cbsnews.com)
• Twelve Questions on Obama’s Refi Plan (blogs.wsj.com)