HARP 2

HARP 2 Overview:

Harp 2 (or HARP II), indeed the Home Affordable Refinance Program to the most vocal among us – is the program that was unveiled by the U.S. government in November to extend the reach of the original HARP program in 2009 , in an effort to help homeowners that didn’t qualify under the original program.   HARP is designed to help homeowners save money, and stay in their homes and support the economy that blew up in 2007.   It is not to be confused with the large stringed instrument popularized by greek muses and cherubs.

HARP history:  The initial program allowed homeowners to qualify with a HARP loan at 125% of their home’s value.  Compare that with most conventional financing that allows a user to borrow just 80% of the home’s value, it was an impressive effort, but many homeowners still didn’t qualify.

HARP 2 picks up where HARP left off:   Regarding home value, HARP 2 allows a homeowner to qualify for the loan with unlimited loan to value.  That means that a homeowner with a $300,000 loan on a $200,000 home could possibly qualify ($300k/$200k = 150% LTV).

HARP Limitations may still apply for some: Unfortunately there are other criteria, and so some homeowners may still not qualify by the expanded new feature.  But it is estimated that up to 4 million people will benefit.  Feel free to talk to a HARP specialist (some of us prefer to talk to a live human), or read on about HARP guidelines and eligibility requirements and make some calculations of your own.

article:

the benefits of HARP to the economy

For one, even though the U.S. Government agreed to buy the loa