Introduction
Welcome to our ultimate guide on HARP loan refinance qualifications. The Home Affordable Refinance Program (HARP) has been helping homeowners for over a decade. This program allows homeowners to refinance their underwater mortgages and take advantage of lower interest rates. In this guide, we will cover everything you need to know about HARP loan refinance qualifications.
Who should read this guide?
This guide is for homeowners who are struggling to make their mortgage payments and want to refinance their loans to a more affordable rate. It is also for those who have been turned down for refinancing in the past and want to know if they qualify for HARP.
What is HARP?
HARP is a government program that helps homeowners who are “underwater” –- where the value of their home is less than the outstanding mortgage balance –- refinance to more affordable mortgages. The program was designed for homeowners who are current on their mortgage payments but have been unable to refinance due to a decline in home values.
What are the Benefits of HARP?
The HARP program has several benefits for homeowners, including:
Benefits |
Explanation |
|---|---|
Lower Monthly Payments |
The primary benefit of HARP is lower monthly payments. Refinancing to a lower interest rate can save homeowners hundreds of dollars every month. |
No Appraisal Required |
HARP does not require an appraisal, which can save homeowners time and money. |
No Credit Score Requirement |
HARP does not have a minimum credit score requirement, making it easier for homeowners to qualify. |
Shorter Loan Terms |
Homeowners can refinance to shorter loan terms under HARP, allowing them to pay off their loans faster. |
HARP Loan Refinance Qualifications
What are the Eligibility Requirements for HARP?
To qualify for HARP, you must meet the following eligibility requirements:
1. Your Loan Must Be Owned by Fannie Mae or Freddie Mac
HARP is only available to homeowners whose mortgages are owned or guaranteed by Fannie Mae or Freddie Mac. You can check if your loan is owned by Fannie Mae or Freddie Mac by using their loan lookup tools on their websites.
2. Your Mortgage Must Be Current
To qualify for HARP, you must be current on your mortgage payments and have a good payment history over the past year.
3. Your Loan Must Have Been Originated on or Before May 31, 2009
Your mortgage loan must have been originated on or before May 31, 2009, to qualify for HARP.
4. Your Loan-to-Value Ratio Must Be Greater Than 80%
Your loan-to-value (LTV) ratio is the ratio of your mortgage balance to your home’s current value. To qualify for HARP, your LTV ratio must be greater than 80%.
5. You Must Not Have Refinanced Under HARP Before
If you have previously refinanced under HARP, you will not be eligible to refinance again under the program.
6. You Must Not Have Missed Any Payments in the Past Six Months
To qualify for HARP, you cannot have missed any payments in the past six months and no more than one payment in the past 12 months.
7. Your Loan Must Be Conventional
HARP only applies to homeowners with conventional loans. If you have a Federal Housing Administration (FHA) or Veterans Affairs (VA) loan, you are not eligible for HARP refinancing.
Frequently Asked Questions
1. Can I Refinance With HARP if I Have a Second Mortgage?
Yes, you can refinance with HARP if you have a second mortgage, but the second mortgage holder must agree to subordinate their lien to the new first mortgage.
2. What if I Have a Home Equity Loan or Line of Credit?
If you have a home equity loan or line of credit, you are still eligible for HARP refinancing as long as you meet the other eligibility requirements.
3. Can I Use HARP to Refinance an Investment Property?
No, HARP is only available for primary residences and second homes. It cannot be used to refinance investment properties.
4. How Do I Apply for HARP Refinancing?
To apply for HARP refinancing, you will need to contact your mortgage lender or a different lender that participates in the HARP program.
5. Can I Refinance Under HARP if I Am Behind on My Mortgage Payments?
No, you cannot refinance under HARP if you are behind on your mortgage payments. You must have a good payment history over the past year to qualify.
6. What Documents Do I Need to Apply for HARP Refinancing?
To apply for HARP refinancing, you will need to provide documentation of your income, assets, and debts, as well as your mortgage and property information.
7. How Long Does the HARP Refinancing Process Take?
The HARP refinancing process typically takes between 30 and 45 days, but it can take longer depending on your lender and your specific situation.
8. Do I Need an Appraisal for HARP Refinancing?
No, HARP refinancing does not require an appraisal, which can save you time and money.
9. What Fees Do I Have to Pay for HARP Refinancing?
The fees for HARP refinancing will vary depending on your lender, but they are generally lower than the fees for a traditional mortgage.
10. Can I Use HARP if I Owe More Than My Home Is Worth?
Yes, HARP is designed to help homeowners who are underwater on their mortgages. As long as you meet the eligibility requirements, you can use HARP to refinance your mortgage even if you owe more than your home is worth.
11. What Happens to My Mortgage Insurance If I Refinance Under HARP?
If you refinance under HARP, your mortgage insurance will not change unless you refinance from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage.
12. When Does the HARP Program End?
The HARP program has been extended several times and is currently set to expire on December 31, 2021.
13. How Many Times Can I Refinance Under HARP?
You can only refinance under HARP once, so make sure you choose the right time to apply.
Conclusion
HARP loan refinance qualifications can be confusing, but we hope that this guide has provided you with all the information you need to determine if you qualify for HARP refinancing. Remember, HARP can offer several benefits to homeowners, including lower monthly payments and shorter loan terms. If you think you might be eligible for HARP refinancing, we encourage you to contact your mortgage lender or a participating lender to learn more about the program and how it can help you.
By taking advantage of HARP, you could save money and reduce your financial stress. Don’t wait –- act now to see if you qualify for HARP refinancing!
Disclaimer
The information contained in this guide is for informational purposes only and is not intended to be a substitute for professional financial or legal advice. You should consult with your financial and legal advisors before making any financial decisions. We do not guarantee the accuracy or completeness of any information provided in this guide, and we are not responsible for any errors or omissions.