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Home Affordable Refinance Program (HARP)

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The Home Affordable Refinance Program (HARP) is a U. S. federal program set up in 2009 by the Federal Housing Finance Agency to help underwater and near-underwater homeowners refinance their mortgages. HARP targets homeowners who are current on their monthly mortgage payments, but are unable to refinance due to dropping home prices in the wake of the U.S. housing market correction. The Federal Housing Finance Agency created HARP to allow those with a loan-to-value ratio exceeding 80% to refinance without also paying for private mortgage insurance (PMI).

In 2011, HARP 2.0 was adopted so there would no longer be any limit on negative equity for mortgages up to 30 years. Even those owing more than 125% of their home value could refinance without PMI.

Government requirements for HARP are as follows:
The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae. Many homeowners are unaware that their mortgages are linked to one of these organizations, since neither Freddie Mac nor Fannie Mae deals directly with the public.
The mortgage must have been acquired by Freddie Mac or Fannie Mae on or before May 31, 2009.
The homeowner must not have a previous HARP refinance of the mortgage, unless it is a Fannie Mae loan that was refinanced under HARP during March-May 2009.
The homeowner must be current on their mortgage payments, with no (30-day) late payments in the last six months and no more than one late payment in the last twelve months.
The current loan-to-value ratio (LTV) of the property must be greater than 80%.
The homeowner must benefit from the loan by either lower monthly payments or movement to a more stable product (such as going from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage).

Contact Resource Mortgages today to explain all the details and updates, and to see if you qualify.

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