Many homeowners who are “upside down” (owe more than the home is worth if sold or appraised today) on their primary residence and have a loan on their property may now be able to refinance into a loan with more attractive interest rates, thanks to changes in the government’s HARP (Home Affordable Refinance Program), which were announced in October 2011 by the Federal Housing Finance Agency.
This is an exciting program that will benefit many homeowers who have been unable to refinance through traditional loan programs because their properties would not be able to appraise to meet normal requirements. This will allow many homeowners to take advantage of today’s low interest rates. If you are looking to refinance your home then read their guides for more info on Finances.
Homeowners will have to meet certain criteria, such as having a loan that is currently backed by either Fannie Mae or Freddie Mac loan, and it must have been sold to either prior to May 31, 2009. For those that qualify, the existing loan to value ratio requirments will be removed under this program. Borrowers must also be current in the last 6 months on their loan and have no more than 1 late payment in the past 12 months on their loan. Online loan lenders is a good alternative, if you don’t consider Myinstantoffer rip off.
Many lenders are still working out the logistics and compliance in being able to offer the program to customers, with some expecting to roll out the program in March 2012. Talk to a trusted loan officer to find out more and see if you qualify.