What is the Home Affordable Refinance Program (HARP)?

HARP is a federal government program that was introduced in March 2009. It is designed to help homeowners who are underwater with their mortgage payments. It allows them to refinance their home into a fixed loan with a lower monthly payment, thus avoiding foreclosure. In October 2011, President Obama announced a change for HARP that would allow it to reach even more underwater homeowners. It is now known as HARP 2.0. 

Are you having difficulty making your current mortgage payment? Do you owe more on your mortgage than your home is worth? Perhaps HARP is right for you! In order to qualify, you must meet all of the following requirements:

• Your mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae, and it must have been sold to one of these before June 1, 2009.
• It cannot have been previously refinanced with HARP.
• The current loan-to-value (LTV) ratio of your loan must be greater than 80%
• The borrower must be current on the mortgage at the time of refinancing, having not missed a payment in the past 6 months. One late payment is allowed in the past 12 months.
• You must have a minimum credit score of 620 to qualify.
• You must have a debt-to-income (DTI) ratio of 45% or less

If you would like more information about this program, Crosscountry Mortgage would be happy to help! Give us a call at (877) 828-8851.

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