Private HARP Loans Explained

Harp Loan

It is the Home Affordable Refinance program, also known as HARP is a program created to help people who are unable to pay your home mortgage (owe more than the home’s value). In the words of Freddie Mac, “HARP is distinctive in that it permits homeowners who have only a small amount of equity in their home to benefit from the current low interest rates and other refinancing advantages.”

A person could be eligible for a HARP loan in the following circumstances:

• The credit of the borrower is satisfactory and they were current on their credit at the time of refinancing.
• The borrower is not in the process of making any late mortgage payments within the last 12 months at the time of refinancing.
• The mortgage must be guaranteed with Freddie Mac or Fannie Mae prior to May 31st, 2009. Take a look at the Fannie Mae Loan Lookup Tool or the Freddie Mac Loan Lookup Tool to determine whether you’re eligible.
• The borrower’s equity is limited or their mortgage is greater than the current value of the property (i.e. the ratio of loan-to-value must be higher than 80 percent to qualify).

The benefits of a HARP loan comprise:

• Intentionally ignoring a month’s installment
• Benefiting from a lower interest rate
• Lowering your monthly bill
• Shorter-term options for building equity could be offered

The HARP program expires on December 31st, 2016. If you have debts that exceed what the value of your home, and bought your property before May 31 2009 the HARP loan could be beneficial to you. Call one of our mortgage advisors immediately by calling 863-382-5080 to find out more about the program and find out whether HARP is a good fit for your requirements.