HARP is a loan refinance program through Making Home Affordable (MHA) by the Departments of the Treasury and Housing and Urban Development (HUD). It is designed to assist homeowners current on their mortgage but who are unable to refinance since the price of their property has dropped below the amount of their loan. Home Affordable Refinance Program (HARP) details for the Burlington MA area can be found in this article.
Home Affordable Refinance Program (HARP) Details For The Burlington MA Area
HARP is a critical alternative for homeowners who would have no other refinance option or who may otherwise experience foreclosure. It not only provides the ability to refinance at reduced interest rates but also to eliminate mortgage insurance. These two changes may dramatically lower monthly payments. There are closing fees involved which vary from one lender to the next. Most costs can be rolled into the loan to limit up-front cash needed to close. HARP is a great program that has already helped many homeowners.
HARP Qualification Criteria
Those interested in HARP must first meet several preliminary criteria. This is for informational purposes only and does not in any way imply approval for a loan.
- You must be current on your loan.
- You must have made payments on time over the last 12 months.
- Your loan must be guaranteed by Fannie Mae or Freddie Mac. Note that this is different from the company that services your mortgage.
- The loan 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 mortgage amount must be greater than 80% but less than 125% of the market price of the home.
- You must complete the process before December 31, 2013.
Getting Started with HARP
If you are unable to refinance with other methods and would like to consider the HARP alternative, there are a couple steps that you should take. You must first identify whether your existing loan is owned by either Fannie Mae or Freddie Mac and if so, whether it originated prior to the May 31, 2009 date. Call the company servicing your loan to get this information. Then locate a company approved by Fannie Mae or Freddie Mac for the refinance. Depending on your loan type, you may not need not use the current mortgage provider, although you have the option to do so if they are an approved company. You will be asked to fill out a formal mortgage application which includes an underwriting process. After the mortgage company reviews the your financial information, the details of the current loan, and the property details, they will let you know your approval status.