HARP – the Home Affordable Refinance Program – was created by the Federal Housing Finance Agency specifically to help homeowners who are current on their mortgage payments, but have little to no equity in their home, refinance their mortgage. A response to the housing crisis, the program helps those who may owe as much or more than what their home is worth.
Those homeowners who have a Fannie Mae or Freddie Mac mortgage, and are up to date on their payments, may be eligible for HARP refinancing. The program could help homeowners save thousands in payments, get a lower interest rate, or more favorable terms. There is no minimum required credit score for a HARP loan in Colorado, and closing costs can be rolled into the new loan, saving on up-front costs.
The following requirements must be met to be eligible for HARP:
- Loan is owned or backs by Fannie Mae or Freddie Mac
- Mortgage is upside down or current loan-to-value ratio is greater than 80%
- Current on mortgage payment (no 30-day+ late payments in the last 6 months and no more than one late payment in the past 12 months)
- Home is primary residence, second home, or investment property
- Mortgage was originated on or before May 31, 2009
Since its introduction in March of 2009, significant changes have been made to HARP. Those who have been denied a HARP loan in Colorado or other areas in the past are encouraged to reapply because the changes made since its inception may make them eligible today. Some of the changes include no underwater limits, no appraisals in certain circumstances, certain risk fees eliminated for shorter amortization terms, and certain representations and warranties waived.
The opportunity for considerable savings and other favorable loan term features through a HARP loan may include:
- Lower monthly payment
- Reduced interest rate
- Securing a fixed-rate mortgage that won’t change over time
- Building equity faster – shorter term options may be available
- Lower closing costs
HARP loans in Colorado offer a more streamlined process than traditional refinancing programs, requires less documentation, and allows for a smoother and faster transaction. To find out if your mortgage is owned by Fannie Mae or Freddie Mac, a key eligibility factor to qualifying for a HARP loan, use the Loan Look-up Tools on the HARP website.
For more information on obtaining a HARP loan, Colorado based Integrity First Mortgage will walk you through the process and answer any questions you may have. Please contact us at (719) 385-0777 office, (719) 360-3767 mobile, or firstname.lastname@example.org.