To begin with you have to look at can be your latest mortgage plus percentage background. To be eligible for the fresh new HARP program, you need to be newest on the mortgage repayments. As well, you simply can’t have costs that have been more than a month later over the past 6 months, no more than one skipped fee in the last 12 days.
Bank
People mortgage we wish to re-finance courtesy HARP have to be secured otherwise belonging to Frannie Mae otherwise Freddie Mac computer. If you’re not sure and this lender enjoys your existing mortgage, you can check your Freddie Mac or Frannie Mae mortgage updates.
Mortgage Style of
Getting entitled to brand new HARP program, you might only have a normal mortgage. Almost every other mortgage alternatives like the USDA, FHA, otherwise Virtual assistant financial are not recognized for the HARP refinance system.
That Play with
Your age assets shortly after. So if you must re-finance your house through this program before, you’ll not manage to re-finance an extra big date.
Origination Day
Your home loan must have a keen origination date on otherwise prior to , to fulfill the requirements with the loan. You need the tools in the list above to locate the origination day, or you can phone call 800-7FANNIE or 800-FREDDIE anywhere between 8 are and 8 pm eastern go out.
Occupancy
Your house we should re-finance to the HARP system has actually several occupancy statutes you have got to follow becoming qualified. Your house possibly needs to be your primary residence, just one device 2nd family, otherwise a-one so you can five tool money spent.
Several issues make the fresh new HARP re-finance system a good fit for most people. As it is actually in the first place built to assist property owners get down mortgage pricing, this option could be a great fit for anyone who wants in order to refinance the most recent mortgages however, has been refused of the almost every other loan providers.
- The mortgage-to-worthy of ratio is over 80% of the home’s worth
- The new homeowner might have been rejected for refinancing from the traditional lenders
- The fresh new citizen has a credit score out-of 620 or more (not a necessity)
- Mortgage payments is current
People that Would not be a good fit towards HARP Program
To your opposite side, you will find several people that brand new HARP system wouldn’t be a good fit having. While you are about or perhaps in standard in your mortgage, you won’t getting qualified for which loan program. Various other examples could well be:
- The fresh new homeowner overlooked multiple mortgage repayment in the last 1 year
- Obtained already refinanced with this specific system just after in advance of
- The first home loan is not by way of Freddie Mac computer or Frannie Mae
- The borrowed funds-to-value proportion is actually underneath the 80% mark
Difference between the newest HARP, HAFA, and you can HAMP Programs
Since the there is stated above, brand new HARP mortgage is for a person who was current on the Frannie Mae or Freddie Mac mortgage no you to definitely not many skipped costs. HARP try a complete refinance system, which can only help to reduce rates of interest and provide a affordable mortgage repayments. New eligibility conditions is actually listed above.
HAMP System
The latest HAMP program was designed to help home owners that within the chance of defaulting to their latest mortgage adjust and you may modify they instead an entire re-finance. Including, they can to give their loan’s cost label, reduce your interest rate, put your money in the forbearance, or switch regarding a variable interest in order to a fixed focus price. You ought to meet with the following the requirements are experienced eligible for this choice:
- The house must be your primary, individual quarters. One local rental otherwise financing attributes aren’t greeting.