Help For Underwater Homeowners

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Real Estate Agent with Re/Max Gateway 0225 093857

Help For Underwater Homeowners

Making Home AffordableThe federal government announced on October 24, 2011 that there is help for homeowners who want to refinance their current mortgage and take advantage of the low interest rates using the HARP program.

The HARP program is not new, it has been around since 2009. What is new are the changes to the guidelines. These new changes will help more homeowners to lower their monthly mortgage payment.

The biggest changes are:

  • Removing the 125% LTV (loan to value) ceiling
  • Eliminating the need for a new appraisal
  • Waiving certain representations and warranties that lenders commit to in making loans
  • You do not need to use your current lender

To refinance under the HARP program you need the following:

  • Your current mortgage needs to be a FannieMae or Freddie Mac backed mortgage
  • You need to be employed and have the income to support the new payment
  • You need to be current on your exsiting mortgage payment
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harp program
fanniemae
underwater homeowner
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loan to value
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Rainmaker
1,394,060
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Short Sale - CDPE, REDS

  It will be interesting to see how this shakes out...being able to support the mortgage is still key...and some hardships will not qualify while others will find this a great remedy.

Oct 25, 2011 07:19 AM #1
Rainmaker
92,631
Susan Jacobs
Re/Max Gateway - Gainesville, VA

I just hope that those who can take advantage of the program will be able to refinance in a timely manner. If enough homeowners are able to take advantage of the program, it could help the economy. I think this has been a long time coming.

 

Oct 25, 2011 07:29 AM #2
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Rainmaker
92,631

Susan Jacobs

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