New HARP Program
The Federal Housing Finance Administration (FHFA) just announced an expansion of the Home Affordable Refinance Program (HARP). This program allows upside-down borrowers to refinance their home as long as their loan is owned by Fannie Mae or Freddie Mac, among other criteria. The expansion of this program specifically is targeted towards steps to encourage lenders to proactively refinance their current portfolio, and to expand criteria especially in the removal of the equity requirement. Previously the HARP program only allowed a maximum of 125% loan-to-value ratio. That has now been removed.
What remains to be said is, now that the FHFA has announced the new rules for the program, each individual lender must now make their own interpretation. Undoubtedly individual lenders will add their own overlays to the program. But certainly, FHFA has pulled out all the stops to encourage as many borrowers to refinance with HARP as possible.
Find out if you are eligible:
Questions about the HARP program? I am more than happy to answer them. We have the opportunity more than ever to provide an opportunity to lower rates for on-time borrowers. And with rates this Fall at the lowest they have ever been, it can be a tremendous opportunity for homeowners.