Introduction
Welcome to our comprehensive guide on government HARP loan modification. Our mission is to provide you with all the information you need to understand how HARP works, how it can help you, and how to qualify for the program. If you’re struggling to make your mortgage payments, you’re not alone. Millions of homeowners have faced financial challenges over the last decade, especially during the economic downturn. Fortunately, HARP can be a solution that’s worth exploring if you’re looking for ways to make your payments more affordable.
Before we dive into the details, let’s start by explaining what HARP stands for. HARP stands for Home Affordable Refinance Program. It’s a federal program that was introduced in 2009 to help homeowners who were “underwater” on their mortgages, meaning they owed more than their homes were worth.
What is HARP?
The HARP program is designed to help homeowners refinance their mortgages to make them more affordable. It’s specifically targeted at homeowners who are underwater on their mortgages, or who have little equity in their homes. The program is only available to homeowners who have mortgages that are owned by Fannie Mae or Freddie Mac, which are government-sponsored enterprises that buy and sell mortgages. The goal of the program is to help homeowners reduce their monthly mortgage payments, avoid foreclosure, and improve their financial stability.
How Does HARP Work?
The HARP program allows eligible homeowners to refinance their mortgages at a lower interest rate, even if they owe more than their home is worth. The program is available to homeowners who have mortgages that were originated on or before May 31, 2009, and who have not missed any mortgage payments in the last six months, and no more than one payment in the last 12 months.
Even if you have been turned down for a refinance in the past, you may be eligible for HARP. The program has been updated over the years to make it more accessible to homeowners who need it most. Some of the key changes include the removal of the loan-to-value (LTV) cap, which means that homeowners who owe more than 125% of their home’s value can now refinance. In addition, the program has been extended until December 31, 2020, which gives homeowners more time to take advantage of the benefits.
How Can HARP Help You?
If you’re struggling to make your mortgage payments or you’re worried about foreclosure, HARP may be able to help you. Here are some of the key benefits of the program:
- Lower monthly payments: HARP allows eligible homeowners to refinance their mortgages at a lower interest rate, which can significantly reduce their monthly mortgage payments.
- Stable payments: HARP offers fixed-rate mortgages, which means that your monthly payments will remain stable over the life of the loan.
- No PMI: If you have mortgage insurance, you may be able to get rid of it when you refinance with HARP.
- No appraisal: HARP does not require an appraisal in most cases, which can save homeowners time and money.
How to Qualify for HARP
To qualify for HARP, you must meet the following eligibility requirements:
- Your mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac.
- Your mortgage must have been originated on or before May 31, 2009.
- Your current loan-to-value (LTV) ratio must be greater than 80%.
- You must be current on your mortgage payments with no late payments in the last six months and no more than one late payment in the last 12 months.
- You must have sufficient income and assets to support the new mortgage payments.
HARP Loan Modification Table
Requirement |
Details |
|---|---|
Mortgage ownership |
Fannie Mae or Freddie Mac |
Origination date |
On or before May 31, 2009 |
Loan-to-value ratio |
Greater than 80% |
Payment history |
No late payments in the last six months and no more than one late payment in the last 12 months |
Income and assets |
Sufficient to support new mortgage payments |
HARP Loan Modification FAQs
1. Can I get a HARP loan modification if I’m behind on my mortgage payments?
No, you must be current on your mortgage payments to qualify for HARP.
2. Can I refinance my mortgage more than once under HARP?
No, you can only refinance your mortgage once under HARP.
3. Can I get a HARP loan modification if my mortgage is not owned by Fannie Mae or Freddie Mac?
No, only mortgages owned or guaranteed by Fannie Mae or Freddie Mac are eligible for HARP.
4. Will HARP loan modification affect my credit score?
No, HARP loan modification should not have a negative impact on your credit score.
5. Can I get a HARP loan modification if I have a second mortgage?
Yes, you may be able to get a HARP loan modification even if you have a second mortgage, as long as the second mortgage holder agrees to subordinate their lien.
6. Can I get cash back with a HARP loan modification?
No, you cannot get cash back with a HARP loan modification.
7. Can I qualify for HARP if I have filed for bankruptcy?
Yes, you may be able to qualify for HARP if you have filed for bankruptcy, as long as you meet the other eligibility requirements.
8. How long does it take to get approved for HARP?
The approval process for HARP can vary depending on the lender and the complexity of your case. However, it typically takes between 30 and 60 days to get approved.
9. Can I get a HARP loan modification if my home is in foreclosure?
No, you cannot get a HARP loan modification if your home is in foreclosure.
10. Does HARP cover investment properties?
No, HARP does not cover investment properties. It is only available for primary residences.
11. Can I get a HARP loan modification if I have already done a loan modification?
No, you cannot get a HARP loan modification if you have already done a loan modification.
12. Will I have to pay closing costs if I get a HARP loan modification?
Yes, you will have to pay closing costs if you get a HARP loan modification. However, you may be able to roll the closing costs into your new mortgage.
13. How long will I have to make payments on my HARP loan modification?
You will have to make payments on your HARP loan modification for the duration of the loan, which can be up to 30 years.
Conclusion
If you’re struggling to make your mortgage payments or you’re worried about foreclosure, HARP loan modification may be an option worth exploring. With lower monthly payments, stable payments, and no PMI, HARP can provide significant relief to homeowners who are underwater on their mortgages. To find out if you’re eligible for HARP, contact your lender or a qualified mortgage professional today.
Remember, time is of the essence. The HARP program is only available until December 31, 2020, so don’t hesitate to explore your options. You may be able to find a solution that can help you manage your finances and achieve greater peace of mind.
Closing Disclaimer
The information provided in this article is for informational purposes only and should not be construed as legal, financial, or tax advice. We strongly recommend that you consult with a qualified professional before taking any action based on the information provided in this article.