Underwater Homeowners Get Relief with Updated Home Affordable Refinance Program (HARP)

Home Affordable Refi Program (HARP) Set to Help Atlanta Homeowners

In December, the Obama Administration annouced some significant changes to the Home Affordable Refinance Program (HARP).

Originally created in 2009, the HARP program was designed to help underwater homeowners refinance, cut their mortgage payments, move to a more stable mortgage product or cut their amortization period even if they were upside down.

The first version of HARP had limitions though. Interest rate hits, loan to value restrictions of 125% and limited to owner occupants only, HARP needed a 2012 makeover.

The Obama Administration and Congress realized if they created a refinance program that allowed homeowners to refinance regardless of their equity position that they could keep more people in their homes and that the monthly savings created would trickle back into the economy.

A win-win situation for underwater homeowers and local businesses.

Enter the HARP 2.0 Program.

HARP 2.0 - How Is It Different?

No doubt, the original Home Affordable Refinance Program helped a lot of homeowners. It didn't go far enough though.

For starters, it was limited to your current mortgage servicer. That meant that homeowners were obliged to deal with the turn-times and guidelines of one of the big 4 banks.

Homeowner's put in their HARP application and 90-120 days later they got their refinance.

HARP 2.0 was opened to all mortgage professionals. Smaller, more customer service based mortgage lenders will now be able to participate. That is good for consumers. The competition ensures a quicker, more responsive mortgage process.

In addition to opening the doors to lenders not working for a mega-bank, HARP 2.0 also lifts the loan to value restrictions that limited the original program.

Equity is no longer an issue. In fact, HARP 2.0 does NOT require an appraisal. Not only does that save time, but it also saves money.

HARP 2.0 Guidelines

Not every homeowner is eligible. For starters, you loan must be owned by Fannie Mae or Freddie Mac.

If you have a FHA, VA, USDA or other type of mortgage loan then you are not eligible. There are other programs out there for you, but HARP is not one of them.

Secondly, you have to be current on your mortgage. No late payments. If you have lates within the last 12 months then you'll need to wait.

If you've already taken advantage of HARP 1.0 then you are ineligible as well.

This will differ from lender to lender, but for the most part a 620 credit score or better and debt to income restrictions will also apply.

If you aren't sure whether you qualify, no sweat. Just contact us and we'll walk you through the HARP 2.0 guidelines.

Get HARP 2.0 Guidance HERE

All in all, HARP 2.0 will be very beneficial to the Atlanta market. With the housing prices dropping nearly 30% from the peak our market has been hit hard.

Georgia homeowners NEED relief. Our neighborhoods need relief as well

Some people have walked away, others don't want to. For they folks that have stuck it out, thank you. Your preserverance is about to be rewarded.

HARP 2.0 (DU Refi Plus) will help a lot of Atlanta homeowners, our neighborhoods and our communities.

Making mortgages more affordable means fewer foreclosures. Fewer foreclosures means less stress on home valuations. Stable home prices are good for everyone.