Harp (Home Affordable Refinance Program) & HomePath

By
Real Estate Mortgage Broker with George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut NMLS #65149

So far I have covered two Federal Programs that were designed to help homeowners in trouble with their mortgage.  These programs are usually mentioned as an acronym, which makes it difficult for the average person as well as even those in the Real Estate Industry to know what the program stands for. As I have stated before these blogs are not meant to go into in depth explanations of each program, but to give just enough of an explanation that those reading these blogs will be able to have a basic understanding of each program, and be able to remember them.

The first two acronym and program that I covered were HAMP (Home Affordable Modification Program), and HOPE aka H4H (Home for Homeowners).  Today I will cover two more Programs HARP and HomePath.

HARPHARP (Home Affordable Refinance Program)

This program was first announced in 2009, and revised by FHFA in December 2011.  The reason why it had to be revised was because it simply did not come close to doing what it was suppose to the first time, so the Government decided to revise it and give it a second chance.

HARP is suppose to make it possible for a homeowner with a Fannie Mae or Freddie Mac mortgage to be able to refinance into a new Fannie Mae or Freddie Mac mortgage without Loan-To-Value (LTV) restrictions.  Basically this program is for Borrowers who have acceptable credit, and can fully document income and assets, but are under water on their property because of property values going down.  The Lender that originates the new loan has to be the same as the Lender who is presently is servicing the loan.  Loans that originally received an Expanded Approval (EA), are not eligible for this refinance.

The Government is hoping that Lenders will participate in this program even though they are refinancing properties that are worth less than the amount that is being refinanced.  The reason why these Lenders would consider doing that is because they are already on the hook for the loan.  And by lowering the interest rate and monthly payment, they are making it less likely that the homeowner will default, and they have to foreclose

 

HomePathHomePath

HomePath is not an acronym, it is the full name of the program.  HomePath is a program that Fannie Mae has created to try to help sell their Real Estate Owned (REO) properties.  HomePath is Fannie Mae's version of FHA's Streamline 203K.  HomePath Mortgages allow for a Borrower to purchase a Fannie Mae owned property that requires light to moderate renovations.  The loan amount includes both the funds to purchase the property and the funds to renovate it, up to 35% of the completed value, but no more than $35,000. 

Anyone interested in purchasing one of these Fannie Mae properties should visit HomePath.com, which is where Fannie Mae lists their REO properties nationwide.  But keep in mind that their is a reason that Fannie Mae is willing to do this type of loan on these properties, and that is because many of them are in need of some TLC, and would not sell otherwise.

 

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Who To Call For Your Mortgage Needs In Connecticut:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.

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  1. Sue Ellett 01/30/2012 01:35 PM
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Topic:
Lending / Financial
Location:
Connecticut
Groups:
1st Time Buyers
Mortgages
Realtors®
What is New in Loan Products
Real Estate Rookie
Tags:
harp homepath

Comments 13 New Comment

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George Souto
Your Connecticut Mortgage Expert
George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut

Joan HomePath is one of the ones that is actually being used, and helping to get some of the tough Fannie Mae properties off the market.

Ed, you are correct no appraisal needed, that is one of the reasons why we are not doing it.  This is a risky loan for the Lenders doing them, they are placing a lot of trust in Fannie Mae. 

Joe, yes there is still a lot of mystery there.

Jennifer there was no hope in HOPE ........... LOL

Karen originally there was, but I am not sure if the same applies to the revised program.  As far as I know they have not come out with all the guidelines on the revised program, so until they do a lot of gray area remains.

Debbie I know what you mean, I get them confused and I am in the business :)

January 27, 2012 06:54 PM
Rainmaker
930,407
Nick T Pappas
Madison & Huntsville Alabama Real Estate Resource
Assoc. Broker/Broker ABR, SFR, e-Pro, @Homes Realty Group, Huntsville AL

Hello George, great explanations of these programs.  I know for a fact that the Homepath program has helped many of my buyers.

January 27, 2012 07:02 PM
Rainmaker
238,941
Sue Ellett
Marble Falls, & Austin, TX, Lake Travis, Lake LBJ
Coldwell Banker United, REALTORS (Paragon Property Group)

Thanks for the information.  I just reblogged it.   

January 30, 2012 01:39 PM
Rainmaker
84,794
Sharon Harris
Realtor
Coldwell Banker Select Pros.

I just sold a homepath property in Pa. It was a nice home in fair condition. However the loan took much longer then a Fha or Usda. Plus I have had people not fit into there guidelines more so then they do.

Still a great programs.

February 01, 2012 07:46 AM
Rainer
3,566
Beth Franssen

The HARP program has been extended through 2013. A homeowner with a former primary residence, now a rental property in Arizona was able to refinance through this program in 2013 in 30 days. The interest rate was competitive, closing costs reasonable, and terms of loan flexible to borrower's needs while still lowering payments. Now as a rental it is not a loss-leader!

This site was invaluable for determining eligibility: http://harpprogram.org/faq.php

February 25, 2013 04:27 PM
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George Souto

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