HARP Guidelines

Simple really.

HARP Guidelines and Eligibility criteria.  Several criteria must be met to qualify for the HARP Program. While there may be additional criteria imposed by lenders, the basic government requirements are as follows:

  • The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.   This is a big one.  The logic goes, that if Fannie or Freddi purchased you original loan, they already own the risk of an underwater mortgage,  – so why not allow a homeowner to benefit by the improved rate (and reduced monthly payment)?  How do I know if my loan is owned by Fannie Mae or Freddie Mac?  Just because you Many homeowners are unaware that their mortgages are linked to one of these organizations, since neither Freddie Mac nor Fannie Mae deals directly with the public.
  •     Your mortgage must have been completed on or before May 31, 2009.
  •     You must not have a previously refinanced you mortgage through the HARP program, unless your was among the loans Fannie Mae refinanced under HARP during March-May 2009.
  •     You, as a homeowner, must be current on your mortgage payments: with no “30 day” late payments in the previous six months nor more than one late payment in the past 12 months.
  •     The current loan-to-value ratio (LTV) of the property must be greater than 80%.
  •     You must benefit from the HARP loan – either from a lower monthly payment or by migrating to more predictable loan product (typically moving from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage).  Remember the “A” in HARP stands for Affordability; the government is hoping to help people “afford” the home they are in and in some cases that means reducing the chance of the payment shock of an ARM loan going from 5% to 11% some years down the road… Whoa Bessie!!!!