Get Benefits with Obama's Harp - By: Mohammed Morin

HARP or home affordable refinance program is an initiative taken by the Obama Government. This initiative started in 2009 after Barrack Obama took his position as the President of United States of America. The program is available till 30th June, 2013.

The HARP or home affordable refinance program enables the homeowners to refinance their property at the current low interest rates. There are different ways of eligibility for a home affordable refinance program. If you have a mortgage on your home, but you are not being able find a regular refinance program, then you may opt for HARP program. Many homeowners get rejected for general refinance loans because due to some reason the value of their property has declined or depreciated in recent times. This is when the homeowners can apply for a home affordable refinance program. This is a much more stable loan that the homeowners can avail for low mortgage rates. HARP loan program includes an application, underwriting process and refinancing fees to be submitted to get the mortgage.

Eligibility Criteria for Home Affordable Refinance Program:

While HARP has been developed and designed to make the refinances much more affordable and stable, not everyone is eligible for it. The eligibility criteria for a Home affordable refinance program include:

* The refinance and the mortgage have to be guaranteed or owned by Fannie Mae or Freddie Mac.

* The mortgage can only be refinanced if it is a Fannie Mae or Freddie Mac loan. It cannot have refinances under the HARP mortgage program unless the loan has been financed by Fannie Mae before May 2009.

* The present loan-to-value ratio has to be greater than 80%

* During the time of HARP application, the borrower has to be current with the mortgage and must also have a good repayment history for one year at least.

New guidelines and rules has been set and released on15th November, 2011 by Freddie Mac and Fannie Mae. These HARP program guidelines say that the term of HARP has been expanded for those homeowners who have very little equity on their home can apply for HARP at very low rate of interest. The program has been expanded so as to facilitate and boost the economy of the country as well as stabilizing the mortgage market.

The HARP program rates of interest are slow as the current rates thus the borrowers can get benefits out of repaying lesser than they were paying previously. More than four million borrowers of Freddie Mac and Fannie Mae now have more mortgages to pay than the actual valuation of their home. The home affordable refinance program enables the borrowers to get refinances using the typical refinance application method. Homeowners who have a good record of repayment but is facing difficulties to get a refinance may apply for HARP. But he or she has to have Fannie Mae or Freddie Mac as guarantor.

About the Author

Cher Byrd is professional writer on varios topic such as refinance mortgage loans, and how to qualify for home affordable refinance program guidelines and other mortgages related issue.

Article Directory Source: http://www.articlerich.com/profile/Mohammed-Morin/223766

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