Changes to HARP Program Announced

Changes to HARP Program Announced

You may have heard that President Obama plans to open up refinancing to more homeowners who are underwater. If you are wondering what this means…and if you can benefit…here are some facts to consider.

First, it’s important to realize that the president’s proposal is not a new program, but a revision to the current Home Affordable Refinance Program (HARP). However there is a big change: Now homeowners can refinance no matter how underwater they are! Before homeowners could only refinance if they were 25% or less underwater, and even then many banks only let people who were 5% or less underwater refinance.

Also, with the revision it’s possible that an appraisal won’t have to be performed, which is great news as this will save time and money. But this is only the case if Fannie Mae or Freddie Mac can electronically estimate the value through their valuation models.

Keep in mind that these updates to HARP apply only to people whose mortgage is currently secured by Fannie Mae or Freddie Mac…and whose loan was securitized by Fannie Mae or Freddie Mac prior to May 31, 2009. So the chances are that people who have refinanced since May 2009 will not qualify to refinance under the HARP revision. Also if you have an FHA or VA mortgage loan you may also be eligible for a rate reduction or streamline refinance under updated guidelines.

So if you have previously attempted to refinance but were told by some other lender it is not possible you need to call us today. We will be glad to search your loan type and let you know if your loan qualifies for a rate reduction. In most cases appraisals are not needed and you can even skip a months mortgage payment. In addition you will receive an escrow refund check form your current lender!

To read more details, you can visit the FHFA Web site. And if you have any questions at all about what these changes mean or how they could impact you, call (615) 261-1368 or email me anytime at brian@tnhomelender.com.  I’m always happy to help. Please don’t let this opportunity pass you by without at least checking. If it does not make sense we will definitely let you know. We will always give you the advice we would want someone to give us!