Update to the HARP Refinance Program a Boon for Homeowners

By John Gabby

Special to Dixon Patch

By now, I am sure many of you have heard about the Home Affordability Refinance Program (HARP 2.0). Designed by Fannie Mae and Freddie Mac, this program was created to help homeowners stay in their homes by making their monthly payment more affordable. This is essentially an opportunity to refinance and lower your current interest rate no matter how much you owe on your home.

First introduced in 2009, the intent of HARP was to help millions of Americans take advantage of the low interest rates and, in the meantime, stabilize the housing market.   This original program was capped at 125 percent current loan to value and was really only able to help a select few.  Many homeowners who saw their home values drop below this mark were excluded. The original HARP was considered by many as somewhat of a failure.

Now enter HARP 2.0. Under the updated HARP guidelines, there is no longer a loan to value restriction on owner occupied properties. This means that those that those that were excluded under the original HARP program can actually take advantage of the HARP 2.0 to lower their interest rate regardless of value.  

Who's Eligible?

To qualify for a HARP 2.0 refinance, you must meet these requirements.

• Your mortgage must have been sold to Fannie Mae or Freddie Mac before June 1, 2009.
• You must have a 620+ credit score
• You must be current on the mortgage and have no late payments in the last 12 months.  (A late payment is defined as one that's more than 30 days overdue)
• This must be your first refinance through HARP. If you have refinanced under an earlier version of HARP, then you do not qualify.

has started taking applications for this loan program. If you have any questions, or to see if you qualify, contact us at 707-678-2800.