The federal government announced that “allow many more struggling borrowers to refinance their mortgages at today’s ultra-low rates, reducing monthly payments for some homeowners and potentially providing a modest boost to the economy.”
|A look at the Obama administration’s efforts in trying to help |
homeowners and bring the nation out of its housing slump.
The proposed changes to the Home Affordable Refinance Program (HARP) will be made by President Obama today, when the government takes action to help homeowners keep their homes.
President Barack Obama was scheduled for more details on the new program in a speech later on Monday in Nevada, where the housing slump has beaten harder.
White House communications director Dan Pfeiffer said to media, “We can not expect Congress to act, so we will take steps as we can,”
Oct. 24, 2011, Today's announcement by the Federal Housing Finance Agency (FHFA) of enhancements to the Home Affordable Refinance Program (HARP) is a welcome development. By removing some of the impediments to refinance, lenders can more easily participate in the program allowing more eligible homeowners to take advantage of the low interest rates.
Do you Qualify for a "Making Home Affordable" Refinance?
: refinance and loan modification loans. The refinance portion is called the Home Affordable Refinance Program (HARP).
To qualify for a HARP loan, you must:
Own-occupy a one-to four-unit home. This plan only applies to those who own and occupy a property that is a single-family home, condo, duplex, triplex, or four-unit house.
Be current on your mortgage payments. If you were late on your mortgage payment by more than 30 days or missed a payment entirely in the past 12 months, you do not qualify. This requirement to be current is to show you can make payments.
Owe between 80-125% of your mortgage. An analysis of Zillow Q1 Real Estate Market Reports shows that up to 36% of all homeowners with mortgages, or 20.1 million households, could now potentially qualify for the plan.
Have a loan backed by Fannie Mae or Freddie Mac. Approximately 60% of single-family loans are backed by Fannie or Freddie, but a homeowner may not know this about their own loan.