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Is The Government Harp Program Real

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What You Don’t Need For A Harp Refinance

Why is Project HAARP so controversial?

Misinformation about HARP requirements confuses homeowners, creating a stumbling block to homeowners who stand to benefit. Many homeowners mistakenly believe HARP is too good to be true and its qualifications are exceedingly complex so that very few borrowers can qualify.

Despite what you might have heard, the requirements for HARP eligibility are fairly simple. HARP 2.0 has further eased the requirements for eligibility and made the process easier, eliminating income verification and documentation requirements for some borrowers.

Here are some common HARP misconceptions:

You can hold a first and second mortgage on your property and still be eligible for a refinance, provided the second mortgage holder agrees to remain in a junior lien position to the first mortgage holder. Keep in mind that even though the LTV ratio doesn’t matter for HARP eligibility, some lenders limit the maximum allowable LTV ratio to 125 percent as a way to minimize their underwriting risk.

People Who Would Be A Good Fit For The Harp Program

Several factors could make the HARP refinance program a good fit for many individuals. As it was originally designed to help homeowners get lower mortgage rates, this program would be a good fit for anyone who wants to refinance their current mortgages but has been turned down by other lenders.

  • The loan-to-value ratio is over 80% of the homeâs worth
  • The homeowner has been turned down for refinancing by traditional lenders
  • The homeowner has a credit score of 620 or higher
  • Mortgage payments are current

Hiro Eligibility: Qualify For Mortgage Relief And A Lower Interest Rate

The HIRO qualifications are relatively simple, but they are important. You may be eligible for HIRO if:

  • Your current mortgage loan is owned by Fannie Mae*
  • Your loan must have been originated after October 1, 2017
  • At least 15 months have passed from the note date of the existing loan to the note date of the new home loan
  • You have made all your payments on time in the last 6 months
  • Your mortgage balance is 97.1% or higher as a percentage of your homes market value, for a one-unit, owner-occupied dwelling

*You may not even know that your mortgage is owned by Fannie Mae. If youre unsure, use this lookup tool on the Fannie Mae website.

If you meet these conditions you are very likely to have access to lower rates but you need to act now before rates go up. Speak with your mortgage lender about relief options.

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Mortgage Refinance Relief Faq

Does Congress have a mortgage stimulus program?

Although theres no current mortgage stimulus from Congress, there is federal help available for homeowners. In March 2021, the American Rescue Plan designated $10 billion to help struggling homeowners. The funds are distributed by individual states and you can locate your states agency and contact information with this lookup tool.

What is the Congress mortgage stimulus program?

Although theres no current mortgage stimulus from Congress, there is federal help available for homeowners. Its called the Homeowner Assistance Fund. This money is intended to help with a variety of homeownership costs, in addition to monthly mortgage payments, including property taxes, homeowners insurance, utility bills and HOA dues.

Is HARP still available?

No. HARP was discontinued on the last day of 2018. HIRO and FMERR were launched in 2021 and serve a similar function.

Are mortgage relief programs real?

Yes, these mortgage relief programs are real and available to help homeowners experiencing financial hardship. Be sure to apply for mortgage assistance directly through your states housing finance agency.

Who is eligible for mortgage relief programs?

You may be eligible for one of several mortgage relief programs, depending on the type of mortgage you have, even if your home value is low compared to your mortgage balance.

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HAARP: Secret Weapon Used For Weather Modification, Electromagnetic ...

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My Lender Denied My Harp Mortgage Because My Ltv Is Too High What Do I Do

Some banks are enforcing subtle variations of the official HARP program guidelines. The edits are small, but theyre enough to cause some people to get denied who should otherwise have been approved. If youve been turned down for the HARP loan because of your loan-to-value, apply with a different bank and you may get different results.

Q: Does The Exclusion For Qualified Principal Residence Indebtedness Apply To Amounts Discharged Under A Pra Principal Reduction

A4: The exclusion for qualified principal residence indebtedness may apply to a discharge of indebtedness under a PRA principal reduction if the amount discharged meets the criteria for qualified principal residence indebtedness. Under current law, this exclusion does not apply to discharges that occur after Dec. 31, 2013. For further discussion of the qualified principal residence exclusion, see the questions and answers on The Mortgage Forgiveness Debt Relief Act and Debt Cancellation page.

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Q: Does The Insolvency Exclusion Apply To Amounts Discharged Under A Pra Principal Reduction

A5: The insolvency exclusion may apply to a discharge of indebtedness under a PRA principal reduction to the extent that the taxpayer is insolvent when the discharge occurs. For further discussion of the insolvency exclusion, see page 4 of Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments PDF.

Alternatives To Harp Government Program

What the hell is HAARP actually doing? | @ConspiracyStuff

Since the expiry of the harp government program in 2018, other programs like Freddie Mac Enhanced Relief Refinance , the Streamline Refinance for FHA, VA, USDA, and Fannie Mae High LTV Refinance program have been developed to assist borrowers in refinancing. However, these HARP replacement programs are unnecessary since property values continue to increase every day.

With the rising home values, homeowners equity increases therefore, they can refinance. Even underwater homeowners who lacked equity in the past years can now be Refi-eligible. So, if you are still paying mortgage rates above the market value, you should know you can refinance to access lower interest rates and monthly payments.

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Streamline Refinancing For Fha Va And Usda Loans

Popular mortgage relief programs since 2009 have only been available to homeowners with conventional mortgages backed by Fannie Mae or Freddie Mac.

But what if your loan is government-backed?

Homeowners with federally-backed FHA, VA, and USDA mortgages have access to different mortgage programs than those with conventional loans. Namely, they can use a Streamline Refinance.

The Streamline Refinance is a special mortgage refi program for people with government-backed loans. Its similar to a mortgage relief refinance because you can use a Streamline Refi even if your home is underwater or has very little equity.

And a Streamline Refinance has other benefits, too.

  • Theres less paperwork because you dont have to re-verify your income or employment or get the home appraised
  • Government-backed loans typically have below-market mortgage interest rates
  • Closing costs are typically cheaper

Homeowners can qualify for an FHA Streamline if theyve made at least three consecutive on-time payments on their existing FHA loan.

Even if you make your three consecutive payments while in forbearance, you may qualify for FHA Streamline refinancing. The Department of Housing and Urban Development , which oversees the Federal Housing Administration, is one of the more lenient housing agencies.

Previous Harp Participants Dont Qualify

If the homeowner already refinanced their home through the HARP program, they will not be eligible for the RRP. If they previously refinanced via other means, they may still qualify. Any loan that used HARP in the past to refinance will not be eligible for this program.

For anyone who used HARP prior, this new refinance program will not apply to you. However, there may be other options you can explore, so do not give up hope if you really need to refinance.

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What Is The Hiro Mortgage Program

The HIRO mortgage loan program is designed to help homeowners refinance their mortgages into a lower payment and rate. It is specifically designed for those who have very little or no equity in their home.

Without equity, it is not easy to refinance a home, even if you have excellent income and credit.

Also known as the Fannie Mae High LTV Refinance Option, the HIRO mortgage loan can help homeowners with high loan-to-value ratios.

Ive Been Told By My Bank That Im Not Eligible For Harp I Think My Bank Is Wrong Can I Get A Second Opinion

HARP Changes to Reach More Borrowers

If youve been turned down for HARP but believe that youre eligible, you can apply with a different bank and see what happens. Different banks are using different variations of the program. The changes are subtle, but theyre enough to cause some people to get denied who should otherwise have been approved.

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Freddie Mac Enhanced Relief Refinance Mortgage

This program is for Freddie Mac borrowers who are on time with their monthly payments but are disqualified from the standard “no cash-out” refinance option from Freddie Mac because the new mortgage would exceed maximum LTV limits. There is no maximum LTV ratio for fixed-rate mortgages, while adjustable-rate mortgages have a maximum LTV of 105%.

What Is Harp Loan

As mentioned above, the HARP refinancing program was introduced in 2009 and has many names. The government refers to it as Home Affordable Refinance Program, but others call it Making Home Affordable, DU Refi Plus, and the Obama Refi. The program is also known as A Better Bargain for U.S. Homeowners, Relief Refinance, and harp mortgage.

The 2018 financial crisis led to the plummeting of real estate values. As a result, many homeowners were left with little or no equity and were left owing a higher mortgage than the actual value of their homes. The HARP refinance program gave the underwater property owns a chance to refinance lower mortgage rates.

In addition, they would be able to keep a larger percentage of their money monthly and build equity. Homeowners can refinance their underwater FHA through the FHA Streamline Refinance Program, whereas they can refinance underwater VA mortgages via VA IRRRL. The USDA Streamline Refinance program is available in several states where homeowners can refinance their underwater USDA loans.

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How Does Harp Work

The Federal Housing Finance Agency created this program in to help homeowners who were affected by the 2008 housing market collapse. It lets potential borrowers refinance their current home mortgages with minimal or no equity. The homeowners will get a more affordable mortgage rate, and they won’t have to add on expensive private mortgage insurance like they would with a traditional mortgage. As long as the borrower is current on their mortgage payments and their loan-to-value ratio is above 80%, they have a good chance of qualifying for this program.

Hiro Mortgage Program Eligibility

With HARP 2.0, underwater homeowners can now refinance

Lenders and borrowers both want to ensure that a refinanced loan results in AT LEAST 1 of the following 4 benefits as per the HIRO guidelines:

  • A lower interest rate
  • A more stable mortgage product

Preliminary HIRO Loan Eligibility Requirements

Not all mortgages will be eligible for the Fannie Mae High LTV Refinance program. Take a look at these initial qualifying criteria before you apply for a HIRO mortgage loan:

  • You must hold a mortgage that Fannie Mae currently owns.
  • Your mortgage must have originated either on or after October 1, 2017.
  • There must be a 15-month interim between the origination of your loan and opening the refinance loan.
  • The mortgage cannot have any 30-day late payments within the past 6 months.
  • The mortgage cannot have more than one 30-day late payment within the last 12 months.
  • The mortgage cannot have any delinquency more than 30 days.

HIRO Loan Equity Requirements

If you have too much equity in your home, you will not qualify for Fannie Maes HIRO mortgage program.

First, lets take a look at the minimum LTV ratios for current loans :

  • 97.01% or higher for a 1-unit primary residence
  • 85.01% or higher for a 2-unit primary residence
  • 75.01% or higher for a 3-unit or 4-unit primary residence
  • 90.01% or higher for a 1-unit second home
  • 75.01% or higher for a 1-4-unit investment property

HIRO Loan Income Verification Requirements

If you are currently employed, you must verify through verbal verification by at least one of your listed borrowers.

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What Is Your Ltv Ratio

The higher it is, the less equity you have in your property, which means a high percentage of your monthly loan payment is devoted to paying interest rather than paying down the principal, the actual loan amount. A HARP refinance can help you increase the proportion or amount devoted toward paying down the principal, a much more palatable scenario than your current situation.

What Is A Mortgage Relief Refinance

When most people think of government or Congress mortgage relief, theyre thinking of HARP the Home Affordable Refinance Program. HARP was a government program rolled out by the Federal Housing Finance Agency in 2009. For nine years, it helped millions of homeowners refinance after being hard hit by the housing crisis.

The HARP program ended in 2018. And similar programs, including Fannie Maes HIRO and Freddie Macs Enhanced Relief Refinance, were also discontinued.

The reason? Home values have been rising dramatically.

Property values shot up at a record rate in 2020 and 2021. As a result, homeowners nationwide saw their equity levels increase. And the number of underwater borrowers shrunk to just 2% of the market.

There are still programs available to help homeowners with little or no equity, including 97% LTV refinancing from Fannie and Freddie and Streamline Refinancing from FHA, VA, and USDA. However, fewer and fewer homeowners need these programs.

Today, the focus is on helping homeowners who were impacted by Covid-19 lower their mortgage payments.

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Mortgage Stimulus Program And Other Good News For Homeowners

For many, theres never been a better time to be a homeowner. Home prices are rising very quickly and, even if youre struggling to keep up with payments, various mortgage refinance programs are standing by to help you out.

Mortgage rates are near all-time lows and homeowners could stand to save significantly on their monthly payments. But what if youre blocked from refinancing because your mortgage balance is close to your homes market value or is even higher? Well, there may be good news for you, too.

Fortunately, home values have been rapidly rising across the country. Fewer and fewer homeowners are underwater.

As a result, many homeowners may be eligible to refinance, even without a special program like HIRO or FMERR. Its worth checking your refinance eligibility to determine whether you could benefit from low-interest rates and a reduced monthly payment.

Harp 20 May Be The Answer For You

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The Home Affordable Refinance Program is designed to help homeowners refinance their mortgages, regardless of the homes value! We all know that the housing market has gone down over the past 5-6 years and many homeowners in our area may have little or no equity left in their home. HARP is designed for those homeowners that have consistently made their mortgage payments on time lower their interest rates and reduce their principal and interest payments. The powerful product has helped almost 2.5 million homeowners, yet 9 out 10 homeowners fail to take advantage of this government program! Even though you may have been turned down in the past, new guidelines are allowing more homeowners take part in the program. Reach out to us today to see if you qualify for our HARP streamlined process!

HARP 2.0 may be the answer for you!

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Advantages Of The Harp Refinancing Program

Choosing to refinance your home is a big step, and you should really think about the positives and negatives of doing so. The HARP refinancing program does offer many positive points for homeowners looking to refinance.

Lower Monthly Payments: One of the primary reasons many homeowners want to use HARP to refinance is for the lower monthly payments. Your monthly payment will be determined by your previous payment history and your credit rating. If you have a higher credit score and a good credit history, you can qualify for excellent payment terms and lower amounts.

Better Mortgage Terms: Again, this will depend on your credit score and your payment history, but you could qualify for lower rates over the life of your mortgage. You could get free refinancing and lower interest rates when you refinance. This has the potential to save you a great deal of money.

Extended Payment Dates: If you’re a person who has difficulty making their mortgage payment on time each month, or if you have an emergency that comes up and you’re having difficulty paying, the HARP program can help. Once you refinance through HARP, your payment due date will be extended, and this can help you make your payments on time.

Deductions: This mortgage refinancing program will allow you to make several tax deductions over the life of your loan. You’ll be allowed to subtract your monthly payments from your taxes, and you’ll get discount points you can deduct over the life of your loan.

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